Another week of flat to down prices for raw steels has traders and investors alike seeing red.
US Steel is shutting down plants in Texas and Pennsylvania due to weak demand for hydraulic fracturing tubes and other steel products. ArcelorMittal did the same in Belgium. Unfortunately, China’s steel production shows no signs of stopping or even slowing down despite the glut conditions in the market.
Chinese steel prices were flat for the week. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.30) and a low price of CNY 830.00 ($132.70) per dry metric ton. Following a steady week, prices for Chinese HRC closed flat at CNY 3,380 ($540.41) per metric ton. At CNY 1,390 ($222.24) per metric ton, the week finished with no movement for Chinese coking coal. Prices for Chinese slab remained constant, closing the week at CNY 3,480 ($556.40) per metric ton.
On the LME, the steel billet 3-month price traded sideways last week, hovering around $400.00 per metric ton. At $390.00 per metric ton, the cash price of steel billet remained essentially flat on the LME.
Korean steel prices were mixed for the week. The price of Korean pig iron fell 1.6 percent to KRW 635,000 ($621.76) per metric ton after rising 1.6 percent the week before. Korean steel scrap traded sideways last week, hovering around KRW 265,000 ($259.47) per metric ton.
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