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May, 23rd 2017

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Weekly Steel

Week 20 16 May 2017

Steel markets transition, raw materials stabilise

Last week was a week of transition for the steel markets as both scrap and iron ore prices stabilised and the market began looking for direction.

Iron ore prices were steady the entire week at levels very close to $60/tonne cfr China; this level has been recorded since 5 May. The stability of iron ore prices helped a recovery in finished steel prices in China compared to the week before, but market observers noted that this small recovery in rebar and HRC prices is not set to hold further in the short-to-mid-term. 

Week 19 09 May 2017

Iron ore at record low, scrap peaks

Last week steel prices in China recovered somewhat, supporting an increasing sentiment across the globe. Iron ore prices surpassed on the 27 April the $67/t cfr Qingdao, according to Kallanish’s price index, over $2/t above mid-April’s bottom. The rebound supported a recovery in Chinese finished steel prices as well as in scrap levels in Turkey. Nevertheless market sources noticed that it is still too soon to talk about a change in trend, as the recovery could be short-lived going into May.

Week 18 03 May 2017

Prices rebound but recovery could be short-lived

Last week steel prices in China recovered somewhat, supporting an increasing sentiment across the globe. Iron ore prices surpassed on the 27 April the $67/t CFR Qingdao, according to Kallanish’s price index, over $2/t above mid-April’s bottom. The rebound supported a recovery in Chinese finished steel prices as well as in scrap levels in Turkey. Nevertheless market sources noticed that it is still too soon to talk about a change in trend, as the recovery could be short-lived going into May.

Week 17 25 Apr 2017

Demand accelerates 2017 growth, market prices fragile

This year the world is set to accelerate its steel demand growth despite the fact China has probably reached its peak and will soon start showing signs of demand correction. Last week the World Steel Association (worldsteel) published its outlook indicating that global demand is set to grow 1.3% y-o-y this year, up from the 1% yo-y growth seen last year. The recovery will mainly be supported by positive numbers in the US, Russia, Turkey and India, while China, the largest consumer of steel globally, is expected to hold its demand stable this year after the 1.3% y-o-y recovery of 2016.