Steel billet has finally started moving up on both the London Metal Exchange and the weekly MMI. The Ukraine-Russian Separatist conflict has caused a shortage at the Black Sea Port affecting Japan, China and several other importers to say nothing for its effects in Russia and Ukraine.
The Commerce Department, this week, placed more tariffs this week on Chinese carbon and steel alloy rod in part of a steel trade war that has seen both the US and China alternating tariffs on each other’s products for the last two years.
Closing at $450.00 per metric ton on the LME, a 4.7 percent increase made the cash price of steel billet the week’s biggest mover on the weekly Raw Steels MMI®. Also on the LME, the steel billet 3-month price rose 4.6 percent last week to $455.00 per metric ton.
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 ($136.34) and a low price of CNY 830.00 ($134.72) per dry metric ton. Prices for Chinese HRC remained constant, closing the week at CNY 3,380 ($548.61) per metric ton. Chinese coking coal remained essentially flat from the previous week at CNY 1,390 ($225.61) per metric ton. Chinese slab prices held steady from the previous week at CNY 3,480 ($564.84) per metric ton.
The spot price of the US HRC futures contract fell 2.2 percent last week, settling at $660.00 per short ton. Following a 0.3 percent increase, US shredded scrap finished the week at $381.00 per short ton. This past week, the 3-month price of the US HRC futures contract kept quiet, holding at at $645.00 per short ton.
Korean steel prices were flat for the week. Closing at KRW 250,000 ($242.66) per metric ton, Korean steel scrap remained unchanged for the week. At KRW 635,000 ($619.69) per metric ton, the price of Korean pig iron did not change since 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.