The monthly Raw Steels MMI® registered a value of 95 in June, a decrease of four percent from 99 in May.
The Raw Steels MMI® had held fairly steady between March 1 and May 1, but fell this past month along with all of the other MMI® index values. The Raw Steels MMI® baseline began on January 1, 2012 with a reading of 100. This report serves as the first public release of this data.
Source: MetalMiner IndX℠
“For industrial buying organizations attempting to better understand the cost of steel products, this Raw Steels MMI® report covers the global raw material price trends impacting steel producers,” said Lisa Reisman, managing editor of MetalMiner. “Only by analyzing these input costs from a variety of global price drivers can a buying organization assemble a cost model reflective of the underlying price trends that most directly correlate to steel prices.”
“Steel held up comparatively well,” Reisman continued, “yet the European and Chinese slowdowns have had an impact on steel pricing; demand has started to slow in the US as well. We’ll need to see if this is a one-month market blip or a longer trend.”
The Drivers for the Steel Price Index Decrease
After falling 20.2 percent, the steel billet 3-month price finished the month on the LME at $387 per metric ton. The cash price of LME steel billet fell 17.4 percent over the past month to $385 per metric ton. A 7.6 percent decline for Chinese slab left the price at between $625 and $650 per metric ton. The price of Chinese billet fell 4.4 percent, while the US HRC futures contract 3-month price ended the month at $650 per short ton. Last month, US shredded scrap prices dropped by 0.9 percent.
On the other side of the steel coin, Korean steel scrap shifted up 2.3 percent last month. The US HRC futures contract spot price rose a slight 0.8 percent over the past month to $660 per short ton.
Last month was consistent for Chinese coking coal, which did not move. Korean pig iron also remained unchanged.
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. MetalMiner will publish the monthly MMI® reports during the first week of the month, every month. Paid subscribers have access to all the data on the first of the month and can also obtain the actual price points for constituent elements that comprise the Raw Steels MMI®.
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.