Ferrous scrap prices for early October delivery into Chinese steel mills have declined by $10 to $20 per gross ton. The drop in scrap prices suggests further price cuts to follow in finished steel products such as billet and rebar.
James May of shared some Steel Insight this week on how consolidation is benefiting US steel companies such as Nucor and ArcelorMittal. Demand is still weak in China leading to lower prices across the board as it is the world’s largest consumer of steel.
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 ($136.77) and a low price of CNY 830.00 ($135.14) per dry metric ton. Chinese HRC traded sideways last week, hovering around CNY 3,030 ($493.34) per metric ton. Prices for Chinese coking coal remained constant, closing the week at CNY 1,390 ($226.32) per metric ton. At CNY 3,480 ($566.61) per metric ton, the week finished with no movement for Chinese slab.
On the LME, the steel billet 3-month price remained steady from the previous week at $455.00 per metric ton. Also on the LME, the cash price of steel billet closed at $450.00 per metric ton after a flat week.
Korean steel prices were flat for the week. At KRW 240,000 ($232.01) per metric ton, the price of Korean steel scrap did not change since the previous week. Korean pig iron prices held steady from the previous week at KRW 635,000 ($619.69) per metric ton.
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