Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Steel Outlook 2014: US Steel Corp Hit Current Market, Not Demand

Published 10/08/2013, 03:35 AM
Updated 07/09/2023, 06:31 AM

Raw Steels MMI
The monthly Raw Steels MMI® held steady at 82, fully 18 points below the January 2012 reading of 100. Although the LME steel billet price rose slightly, the underlying dynamics of the steel market suggest current price rises for flat rolled products have more to do with domestic supply disruptions from AK Steel and US Steel Corp., as well as fourth quarter automotive demand, than any structural or systemic improvement in steel demand.

Steel Price Forecast 2014

“It remains unclear as to whether Q4 2014 will follow previous years’ trends of rising prices into Q1,” said Lisa Reisman, managing editor of MetalMiner. “The global dynamics suggest otherwise.” Nonetheless, manufacturers have reported rising steel price quotes. Whether the price rises will stick remains unclear.

The steel longs market, meanwhile, has faced some price pressure as construction numbers have led to a mixed bag – in particular the rate of growth for non-residential construction starts has begun to decline. More analysis on the construction sector and related metals markets here.

Meanwhile, China continues to produce massive volumes of steel and substantially more tonnage than the Chinese market requires, leading to global oversupply.

Key Drivers of the Steel Price Index
The price of Chinese slab closed the month after dropping 4.3 percent. Korean steel scrap prices dropped by 2.2 percent this month.

US shredded scrap closed the month after dropping 1.9 percent. The price of Korean pig iron held jumped 3.5 percent last month.

The 3-month price of the US HRC futures contract closed the month up 0.3 percent at $630.00 per short ton.

Chinese billet traded slightly higher last month. Prices for Chinese coking coal bumped up only a tiny bit this past month. The China price of 58% iron ore fines from India budged upward only marginally.


by Taras Berezowsky

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.