IBISWorld has forecasted steel prices to increase at an annualized rate of 2.2% over the next three years because of growing demand from the recovering construction industry and from high-growth real estate markets around the world such as Shanghai, Beijing, Tokyo, Dubai, Abu Dhabi, New York and Miami. If the increased demand materializes it will create inflationary pressure on all building materials.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.23) and a low price of CNY 830.00 ($133.62) per dry metric ton. The price of Chinese HRC held steady at CNY 3,360 ($540.93) per metric ton. The price of Chinese coking coal was unchanged at CNY 1,390 ($223.78) per metric ton.
The cash price of steel billet saw little price change on Thursday on the LME at $390.00 per metric ton. The 3-month price of steel billet saw little movement on the LME at $400.00 per metric ton.
After remaining flat for three days, the spot price of the US HRC futures contract fell 0.5 percent on Thursday to $625.00 per short ton. The 3-month price of the US HRC futures contract held steady yesterday, remaining around $640.00 per short ton.