A collapse in iron-ore prices is dampening profits at the mining unit of ArcelorMittal, a BDlive.com report stated. That undercut CEO Lakshmi Mittal’s strategy for the world’s biggest producer of steel to take advantage of rising demand in the US and Europe.
The shares of the multinational parent of ArcelorMittal South Africa fell the most in two years on Friday on the various bourses it is listed on as the company cut its earnings forecast for this year, citing the slump in iron-ore prices in the first six months.
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 ($135.95) and a low price of CNY 830.00 ($134.33) per dry metric ton. For the fifth day in a row, the price of Chinese HRC remained essentially flat at CNY 3,380 ($547.04) per metric ton. The price of Chinese coking coal held steady at CNY 1,390 ($224.96) per metric ton.
Also on the LME, the steel billet cash price saw little change in its price yesterday at $420.00 per metric ton. The steel billet 3-month price saw little movement on the LME at $425.00 per metric ton.
The 3-month price of the US HRC futures contract saw little price change on Tuesday at $641.00 per short ton. The US HRC futures contract spot price saw little movement on Tuesday at $675.00 per short ton.