While steel markets continued to fall after a long period of flatness, steel companies are still investing heavily in to open up new markets for their products.
ArcelorMittal opened its first Chinese joint-venture plant, VAMA, in Hunan province, while Indian majors Tata Steel and JSW started importing iron ore to deal with a mining ban in the state of Odisha. The rare highlight of steel markets, scrap prices, could also see a steep plummet soon as analysts predict a sharp fall-off as cheaper iron ore competes with it this summer. The hits just keep on coming for steel.
Chinese steel prices were flat for the week. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.90) and a low price of CNY 830.00 ($133.30) per dry metric ton. At CNY 3,380 ($542.82) per metric ton, the price of Chinese HRC did not change since the previous week. Chinese coking coal prices held steady from the previous week at CNY 1,390 ($223.23) per metric ton. Prices for Chinese slab remained constant, closing the week at CNY 3,480 ($558.88) per metric ton.
Following a steady week, prices for on the LME the steel billet 3-month price closed flat at $400.00 per metric ton. Also on the LME, the steel billet cash price traded sideways last week, hovering around $395.00 per metric ton.
Korean steel prices were flat for the week. Korean steel scrap traded sideways last week, hovering around KRW 265,000 ($259.50) per metric ton. At KRW 645,000 ($634.53) per metric ton, the week finished with no movement for Korean pig iron.
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