U.S. Steel has idled another oil country tubular goods (OCTG) steel plant in Houston, where 142 will be laid off. The facility generates more than 100,000 tons annually of steel pipes and tubes for oil and gas exploration and drilling. It is believed to be the second steel-producer casualty of the massive drop in oil prices this year, which fell as low as $48 a barrel yesterday reaching a 5-year nadir.
The first casualty was another U.S. Steel plant in Lorain, Ohio, idled yesterday. U.S. Steel has laid off a total of 756 workers at the 2 facilities.
The US HRC futures contract 3-month price closed Tuesday, January 6 at $602.00 per short ton, halting its three-day flat run with a 0.5% drift. The spot price of the US HRC futures contract saw a 0.3% decline to $605.00 per short ton.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.03) and a low price of CNY 840.00 ($135.03) per dry metric ton. The price of Chinese HRC continues hovering around CNY 3,040 ($488.68) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese coking coal held flat at CNY 1,080 ($173.61) per metric ton.
The steel billet cash price saw little movement on the LME at $500.00 per metric ton. The 3-month price of steel billet saw essentially no change on the LME for the fifth day in a row, remaining around $480.00 per metric ton.