Automobile production in China, already the world’s biggest market, may climb about 60 percent in the next eight years, boosting demand for steel, according to ArcelorMittal, the largest producer.
Output may rise to 30 million units to 35 million units in the next seven to eight years, from 22 million units now, Lakshmi Mittal, the company’s billionaire chief executive officer, said today in an interview in Loudi, China, before the opening of an automotive steel venture with Hunan Valin Steel Co.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.83) and a low price of CNY 830.00 ($133.23) per dry metric ton. The price of Chinese HRC held steady at CNY 3,380 ($542.53) per metric ton. The price of Chinese coking coal remained essentially flat at CNY 1,390 ($223.11) per metric ton.
The steel billet cash price was unchanged on the LME at $395.00 per metric ton. The 3-month price of steel billet saw essentially no change on the LME for the fifth day in a row, remaining around $400.00 per metric ton.
The US HRC futures contract 3-month price showed little movement yesterday at $630.00 per short ton. For the fifth consecutive day, the spot price of the US HRC futures contract held flat at $668.00 per short ton.