Steel’s price fell, just as most commodities did this week, due to lower oil prices. Steel has been flat to down for most of the year and the winter season in China will likely cause the industrial metal to fall further next year.
Crude oil is now at its lowest level since 2009, hurting anything tied to oil production and while this will likely save in energy costs for steel producers, prices will not rise much without an accompanying increase in still-stagnant demand.
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 ($135.74) and a low price of CNY 840.00 ($135.74) per dry metric ton. The price of Chinese HRC rose 1.0% to CNY 3,090 ($499.33) per metric ton after falling 3.2% during the previous week. Chinese coking coal remained essentially flat from the previous week at CNY 1,080 ($174.52) per metric ton. Closing out the third week of declining prices, the price of Chinese slab dropped by 0.3%, finishing at CNY 2,890 ($467.01) per metric ton.
This past week, the steel billet 3-month price kept quiet, holding at on the LME at $480.00 per metric ton. At $500.00 per metric ton, the steel billet cash price remained essentially flat on the LME.
Korean steel prices were flat for the week. Closing at KRW 214,000 ($193.81) per metric ton, Korean steel scrap remained unchanged for the week. At KRW 635,000 ($619.69) per metric ton, the week finished with no movement for Korean pig iron.
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