Big drops in steel prices and lower demand for oil and gas are leading Worthington Industries Inc. to warn of quarterly earnings “significantly below” last year’s.
The Columbus, Ohio-based metal processor said steel prices have dropped more than $100 a ton since mid-December. That, coupled with a major softening of demand in agriculture and oil and gas, factor in the $3.4 billion company’s announcement.
The day’s biggest mover was the steel billet 3-month price which dropped by 7.5% on Monday, February 23 to close at $370.00 per metric ton on the LME. Also on the LME, the cash price of steel billet fell 7.5% to $370.00 per metric ton.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 450.00 ($71.96) and a low price of CNY 445.00 ($71.16) per dry metric ton. The price of Chinese HRC saw essentially no change for the fifth day in a row, remaining around CNY 2,490 ($398.19) per metric ton. For the fifth day in a row, the price of Chinese coking coal remained essentially flat at CNY 1,080 ($172.71) per metric ton.
After falling 1.1% to $519.00 per short ton, the 3-month price of the US HRC futures contract reached a 30-day low. The spot price of the US HRC futures contract saw little change in its price on Monday at $530.00 per short ton.