Steel Stocks Fall After Ominous Warning from AK Steel

by on

Steelmaker stocks tumbled Tuesday amid a confluence of factors, such as growing price worries, a warning by AK Steel that Q4 results will be hit by a planned outage, and bearish comments by hedge fund manager David Einhorn on U.S. Steel’s prospects.

FREE Download: The Monthly MMI® Report – covering Steel/Iron Ore markets.

Meanwhile, oil prices continued to plunge on new Saudi price cuts, potentially hurting future demand for steel products used to drill in shale formations.

With a decline of 1.2% to $639.00 per short ton on Tuesday, November 4, the spot price of the US HRC futures contract recorded the biggest decline of the day. The US HRC futures contract 3-month price saw a 1.1% decline to $635.00 per short ton.

* Get the complete prices every day on the MetalMiner IndX℠

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 ($136.77) and a low price of CNY 830.00 ($135.14) per dry metric ton. The price of Chinese HRC continues hovering around CNY 2,980 ($485.20) per metric ton for the fifth day in a row. The price of Chinese coking coal was unchanged at CNY 1,390 ($226.32) per metric ton.

The steel billet cash price saw essentially no change on the LME for the fifth day in a row, remaining around $465.00 per metric ton. The 3-month price of steel billet held steady on the LME at $455.00 per metric ton.

{Comments Off on Steel Stocks Fall After Ominous Warning from AK Steel Comments Off on Steel Stocks Fall After Ominous Warning from AK Steel}