- According to company spokesmen, steel buyers are continuing to exhibit caution early in this year, and they suggest that early spot demand is healthy; average spot prices will be higher than in the fourth quarter, but this will take time.
- USS expects raw material costs -- coking coal, etc. -- to be lower for their flat-rolled steel operations in the upcoming year. Coal costs should, on average, come out to be 20% less over the course of the year compared to 2012.
- In terms of a flat-rolled market demand outlook: Automotive -- 2012 NAFTA vehicle production was up 18% year over year; 15.5 to 15.7 million units are projected to be produced in 2013. Appliances -- not as good (Q4 appliance unit shipments down 1% versus 2011; full year shipments 2% lower in 2012; producers have been rather mum on 2013 outlook, although it’s been reported that Whirlpool, for one, sees ”an improving U.S. housing market and sales growth opportunities in developing overseas markets [as] providing momentum for a recovery.” Construction -- U.S. residential market, i.e. housing starts, looking up in 2013.
The three-month price of steel billet fell to $265.00 per metric ton on the LME, a 7% change from the prior week.
For the third week in a row, the spot price of the U.S. HRC futures contract dropped, falling 1.4% to $624.00 per short ton. The three-month price of the U.S. HRC futures contract rose 0.5% to $648.00 per short ton after falling 0.8% during the previous week.
The week finished with no movement for U.S. shredded scrap.
Chinese steel prices were mixed for the week. The high and low price of iron ore 58% fines from India were down just slightly. The price of Chinese slab rose 1% after falling 0.5% during the previous week.
Closing out the third week of rising prices, the price of Chinese HRC also increased by 1%. Chinese coking coal traded sideways last week.
Korean steel prices were mixed for the week. The price of Korean steel scrap fell 4.1% after rising 4.3% the week before. Prices for Korean pig iron remained constant, however.
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