Steel Products

Iron Ore Spot Prices (China) Defying Forecasts
Written by Sandy Williams
August 19, 2013
Iron ore prices continue to rise this month despite forecasts for a sharp correction in the last half of the year. The Steel Index reported 62% iron ore fines at Tianjin Port on August 14 was at a five month high of $142.8—a meteoric rise of more than 28 percent from $110.9/dry tonne on June 12. June 16 prices dipped slightly lower to $137.9/dry ton but, despite day-to-day fluctuations, the trend has been overwhelmingly upward.
One of our Asian Trading Company sources had the following to say about the increases:
No one has any freaking idea why the prices are being generated upwards. There was 1-2 Tenders taken and the Indices used those to exaggerate the market for the past 3-4 days. Now, the real cooling off is transpiring as no more tenders are being taken. Those taken were Trading Houses/Importers and not Mills, so here we see that Traders were the culprits of the past 3-4 days, not Mills. Platts was down USD2/dmt yesterday and expected downwards for the next week as there is NO REASON for the increases. Yes, Port stocks are down and some transactions were for early Sept. cargos by Traders and like the Stock Markets today, any little breathe of optimism is taken as a REBOUND and LIGHT AT THE END OF THE TUNNEL, but it just ain’t happening.
Despite forecasts for a slowdown in China, recent announcements of increased public projects to meet a 7.5 percent GDP goal in 2013, translates to higher industrial activity and raw materials demand. In July, a record 73 million tons of iron ore was shipped to China indicating steel is still in strong demand. After keeping ore inventories lean in hopes of better pricing, restocking is pushing prices even higher.
The upward pricing trend has analysts revising predictions that increased capacity at iron ore mines will drive a supply glut that will drop prices back into the $100 range before the end of the year. New forecasts see a softer drop to around $120/tonne.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.

Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.