Steel Has Another Bad Week, Chinese Production One of the Culprits

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Steel had another flat to down week on the MMI as Chinese production still hampered a recovery in prices. Russia erected trade barriers to Ukrainian goods this week as the new Ukrainian President signed a trade agreement with the European Union. Those goods include Ukrainian steel.

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The week’s biggest mover on the weekly Raw Steels MMI® was the 3-month price of the US HRC futures contract, which saw a 0.8 percent increase to $635.00 per short ton. This week marked the third in a row of rising prices for the metal. Last week, the spot price of the US HRC futures contract increased by a slight 0.3 percent to $670.00 per short ton. The price of US shredded scrap rose 0.3 percent to $370.00 per short ton after falling 0.5 percent during the previous week.

The biggest mover this week was Korean steel scrap with a 1.9 percent fall on the weekly Raw Steels MMI® to close the week at KRW 260,000 ($254.53) per metric ton. After a 1.6 percent decline, Korean pig iron closed out the week at KRW 635,000 ($621.64) per metric ton.

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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 ($134.80) and a low price of CNY 830.00 ($133.19) per dry metric ton. Following a steady week, prices for Chinese HRC closed flat at CNY 3,380 ($542.40) per metric ton. At CNY 1,390 ($223.06) per metric ton, the price of Chinese coking coal did not change since the previous week. Chinese slab traded sideways last week, hovering around CNY 3,480 ($558.44) per metric ton.

This past week, the steel billet 3-month price kept quiet, holding at on the LME at $400.00 per metric ton. Also on the LME, the cash price of steel billet traded sideways last week, hovering around $395.00 per metric ton.

At $635.00 per short ton, the US HRC futures contract 3-month price finished the week 0.8 percent higher. The US HRC futures contract spot price rose 0.3 percent over the past week to $670.00 per short ton. The price of US shredded scrap rose 0.3 percent to $370.00 per short ton after falling 0.5 percent during the previous week.

The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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