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.
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.
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.