The big story in steel this week was the declining price of US steel scrap, which has finally succumbed to downward market pressure after months of holding on to shaky gains.
The US ended a Cold War-era deal exempting Russia from import tariffs this week, as well, import duties on Russian steel will begin in September. The action was prompted by the ongoing conflict in Ukraine and Russia’s participation in it.
The week’s biggest mover on the weekly Raw Steels MMI® was the 3-month price of the US HRC futures contract, which saw a 1.1% decline to $631.00 per short ton. This comes on the heels of a 0.5% increase the week before. With a 0.9% decrease, the US HRC futures contract spot price closed the week at $632.00 per short ton. After a 0.6% decline, US shredded scrap closed out the week at $348.00 per short ton.
The biggest mover this week was Korean steel scrap with a 10.8% fall on the weekly Raw Steels MMI® to close the week at KRW 214,000 ($200.21) per metric ton. Korean pig iron remained essentially flat from the previous week at KRW 635,000 ($619.69) per metric ton.
Chinese steel prices were mixed 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 prices were off slightly at CNY 2,970 ($483.57) per metric ton, down from CNY 2,980 ($485.20) a week ago. Chinese coking coal prices held steady from the previous week at CNY 1,390 ($226.32) per metric ton. Chinese slab traded sideways last week, hovering around CNY 3,480 ($566.61) per metric ton.
On the LME, the steel billet 3-month price closed at $455.00 per metric ton after a flat week. Also on the LME, the cash price of steel billet remained steady from the previous week at $465.00 per metric ton.
Following a 0.5% increase in the week prior, the US HRC futures contract 3-month price fell 1.1% last week to $631.00 per short ton. The spot price of the US HRC futures contract closed last week at $632.00 per short ton, after a 0.9% drop. US shredded scrap saw a 0.6% decline over the past week to $348.00 per short ton.
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.