U.S. Steel on Thursday announced more layoffs as it continues to fight lower-priced, surging imports and declining demand in the energy sector, saying it will temporarily idle one of its iron-ore operations in Minnesota, affecting 412 workers.
The idling of the plant in Keewatin, Minn., which ships to U.S. Steel mills, will take place on May 13 and affects six million tons of iron-ore production capacity, or 27% of U.S. Steel’s overall iron-ore output last year. U.S. Steel said the move is temporary in a statement.
The week’s biggest mover on the weekly Raw Steels MMI® was the 3-month price of the US HRC futures contract, which saw a 1.0% increase to $520.00 per short ton. This comes on the heels of a 0.8% decline the week prior. US shredded scrap traded sideways last week, hovering around $246.00 per short ton. The spot price of the US HRC futures contract stayed essentially flat at $500.00 per short ton.
After falling 3.5%, Korean steel scrap landed at KRW 139,000 ($123.34) per metric ton and making it the week’s biggest mover on the weekly Raw Steels MMI®. Prices for Korean pig iron remained constant, closing the week at KRW 530,000 ($470.27) per metric ton.
Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India hit a high price of CNY 450.00 ($71.83) and a low price of CNY 445.00 ($71.03) per dry metric ton. Chinese slab finished the week at CNY 2,380 ($380.10) per metric ton after falling 3.3%. Following a 1.6% increase in the week prior, the price of Chinese HRC fell 0.8% last week to CNY 2,510 ($400.86) per metric ton. At CNY 1,080 ($172.40) per metric ton, the price of Chinese coking coal did not change since the previous week.
Following a steady week, prices for on the LME the steel billet 3-month price closed flat at $305.00 per metric ton. Also on the LME, the cash price of steel billet closed at $305.00 per metric ton after a flat week.
The US HRC futures contract 3-month price rose 1.0% to $520.00 per short ton after falling 0.8% during the previous week. US shredded scrap remained essentially flat from the previous week at $246.00 per short ton. At $500.00 per short ton, the spot price of the US HRC futures contract remained essentially flat.
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.