An increase in US ferrous scrap export tonnage and prices to Turkey this week have bolstered pricing for September domestic scrap procurement, Platts reported on Wednesday.
In terms of supply, the bank sees global crude steel production through May running at 2.4% growth year-on-year supporting the bank’s earlier growth forecast of 2.7% for 2014. Global overcapacity has kept utilization below 80% resulting in limited power to influence prices and pressure on margins.
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 ($136.39) and a low price of CNY 830.00 ($134.77) per dry metric ton. The price of Chinese HRC was unchanged at CNY 3,380 ($548.81) per metric ton. The price of Chinese coking coal held steady at CNY 1,390 ($225.69) per metric ton.
Also on the LME, the cash price of steel billet showed little movement yesterday, hovering around $420.00 per metric ton. The steel billet 3-month price remained essentially flat at $425.00 per metric ton on the LME.
The 3-month price of the US HRC futures contract held steady around $645.00 per short ton. The US HRC futures contract spot price saw essentially no change for the fifth day in a row, remaining around $675.00 per short ton.