The monthly Raw Steels MMI® registered a value of 91 in July, down 4.4 percent from the June reading of 95.
Not surprisingly, US scrap prices acted as the biggest drag on the complex.
Source: MetalMiner IndX(SM)
“Though US scrap prices faced an anticipated downward price correction, we remain surprised by the price support for both Chinese iron ore, as we previously reported, and coking coal, which has also slightly increased,” said Lisa Reisman, managing editor of MetalMiner.
“Chinese steel production appears to be live and well, despite a lack of demand and falling finished steel prices across the board within the Chinese market.”
The Drivers for the Steel Price Index Decrease
US shredded scrap prices fell 14 percent for the month. On the LME, the steel billet cash price closed the month at $364 per metric ton after dropping over 8 percent. The LME steel billet 3-month price fared about the same, closing at $364.50 per metric ton.
The price of Korean steel scrap closed the month down after dropping by 5 percent. Korean pig iron also fell, dropping 3 percent. Following a 6.1 percent decline, the US HRC futures contract spot price reached $620 per short ton. A 3 percent decline for the 3-month price of US HRC futures contract left it at $630 per short ton.
The price of Chinese billet rose 1.1 percent after falling the previous month. Chinese coking coal moved up by mere pennies per ton, while Chinese slab prices also increased by a few Abe Lincolns per ton.
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 over a 30-day period. 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.