A leading Chinese steel industry body predicts a modest increase in steel demand for 2015 as economic growth slows down in China, according to Caixin.
The China Metallurgical and Industry Planning and Research Institute believes demand for steel products will reach 720 million tons next year, up 1.4% from this year. At the same time, the steel industry will produce 834 million tons of crude steel, an increase of 1.71% from 2014.
The institute also predicts China will import 1 billion tons of iron ore next year, an increase of 6.4% from 2014. The head of the institute and the deputy chair of the government-backed China Iron and Steel Association, Li Xinchuang says he thinks $60 per ton would be the floor price for iron ore.
Chinese slab saw a 9.1% increase on Wednesday, December 3, reaching CNY 3,350 ($544.94) per metric ton and making it the biggest upwards shift of the day. Chinese HRC prices inched up 1.3% to CNY 3,160 ($514.04) per metric ton. Following two days of downward movement, the price of Chinese coking coal held steady at CNY 1,080 ($175.68) per metric ton. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.64) and a low price of CNY 840.00 ($136.64) per dry metric ton.
The steel billet cash price held steady on the LME at $500.00 per metric ton. The steel billet 3-month price was unchanged on the LME at $480.00 per metric ton.
The spot price of the US HRC futures contract declined 0.2% to $630.00 per short ton. The US HRC futures contract 3-month price saw little movement yesterday at $625.00 per short ton.