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August, 17th 2017

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Weekly Steel

Week 33 15 Aug 2017

Chinese steel prices rise as global demand firms

Prospects for the global steel sector for the rest of 2017 remain healthy. Seaborne iron ore prices are in the mid-$70 range, global ferrous scrap prices continue to strengthen, Chinese steel prices remain firm-to-improving and most major steelmakers are posting improving financial results.


Week 32 08 Aug 2017

Raw material price rally continues

The rally of ferrous raw material prices continued last week supported by the good momentum in most global markets. Both iron ore and scrap international benchmarks jumped again, surpassing again the market expectations.

Scrap reached last week $330/t CFR Turkey for HMS 1/2 (80:20 blend), matching the highest point ever registered by the Kallanish index, reached in May 2016. Some sources expect the uptrend to continue to $350 or even $360, but it is worth noticing that only few weeks back many believed the top of the market would be at just above $300/t CFR.

Week 31 01 Aug 2017

Global price rally continues, demand outlook improves

The rally in global steel prices continued last week, supported by scrap levels approaching a new record level and iron prices stabilising at above $68/tonne cfr Qingdao.

As an indicator as we head into August, HRC exported from the CIS is currently at its highest level of the year, at $500/t fob Black Sea. Chinese HRC export levels meanwhile are some $25/t above the prices registered in July 2016.

While the market is enjoying the pricing momentum, ArcelorMittal, the largest steelmaker in the world, also noted that global demand has performed better than expected during the first part of this year. As a result the company has increased its outlook for apparent steel demand in 2017. 

Week 30 25 Jul 2017

Raw material prices jump again

Global raw material prices last week jumped again as the recovery that began in June continued.

Both scrap and iron ore prices continue to be well above the levels registered in July 2016 and 2015. Iron ore, now steadily above the $65/t CFR Qingdao, is some $10/t above the levels registered at the end of July 2016 and $15/t above July 2015. While this year’s record level at some $90/t CFR Qingdao is still far from being reached again, only a few weeks ago few sources in the market would have predicted that iron ore levels could recover this quickly - to above $60/t CFR.

Meanwhile the scrap market is continuing to perform very well and last week the Turkish import market reached a new fourteen-months record at $310/t CFR Turkey for HMS 1/2 80:20. The current level is some $75-80/t above the levels of July 2016 and 2015, confirming that 2017 is set to be remembered as a year of particularly strong scrap prices going forward.