Major producers and even entire nations cut back steel production due to low prices this week.
Nucor and Steel Dynamics cut production in Indiana and Arkansas, respectively. Data from China showed that steel output grew at the lowest rate there in 3 decades. U.S. Steel even shuttered 2 more facilities in Indian and Illinois and laid off 545 more workers.
Chinese slab saw a 6.4% decline this week, finishing at CNY 2,480 ($399.07) per metric ton and making it the week’s biggest mover on the weekly Raw Steels MMI®. Chinese HRC dropped 3.1% over the past week to CNY 2,800 ($450.56) per metric ton. Chinese billet remained essentially flat from the previous week at CNY 2,300 ($370.11) per metric ton. Following a steady week, prices for Chinese coking coal closed flat at CNY 1,080 ($173.79) per metric ton. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.17) and a low price of CNY 840.00 ($135.17) per dry metric ton.
At $480.00 per metric ton, the 3-month price of steel billet remained essentially flat on the LME. This past week, the cash price of steel billet kept quiet, holding at on the LME at $500.00 per metric ton.
The 3-month price of the US HRC futures contract fell 3.7% over the past week to $575.00 per short ton. This was the third week in a row of declining prices. With a 1.5% decrease, the US HRC futures contract spot price closed the week at $585.00 per short ton. The price of US shredded scrap rose 0.6% this week, closing out the third week at $338.00 per short ton.
Korean steel prices were flat for the week. Korean steel scrap prices held steady from the previous week at KRW 169,000 ($156.45) per metric ton. At KRW 530,000 ($490.63) per metric ton, the week finished with no movement for Korean pig iron.
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.