Steel Products Prices North America
Vale Has 2nd Best Quarter for Iron Ore
Written by Sandy Williams
November 7, 2013
Vale reported net earnings of $3.5 billion in the third quarter, up 120 percent from the same quarter in 2012. Iron ore production was 85.9 million tonnes, up 17.3 percent from the previous quarter and the second best quarter of production in Vale’s history. Iron ore production for the first nine months of 2013 was 226.6 million tonnes and the company expects to finish the year at 306 million tonnes.
Production of direct reduced pellets reached 12.4 million tonnes in the third quarter, similar to second quarter but 17.2 percent below 3Q 2012 levels due the shutdown of the Tubarao I and II and Sao Luis pellet plants.
The average realized price for iron ore was $105.58 per metric ton, up from $99.21 per metric ton in the second quarter. The average sales price of pellets was $149.66 per metric ton, up $2.73 higher than the previous quarter.
Stronger Chinese steel demand and a combination of low iron ore and steel inventories have influenced iron ore prices over the past few months said Vale. China’s crude steel output expanded 8.6 percent in the first nine months of 2013 while imports of iron ore grew 8.8 percent in the same period on a year-over-year basis. Vale expects iron ore to be around $130 per metric tonne in the fourth quarter.
TSI says ore forecasts vary
Reforms to be discussed by Chinese leaders next week are likely to support new economic growth in China said The Steel Index in its monthly outlook. According to TSI, iron ore price forecasts have varied depending on predictions of future ore supply. The forecasted surge in ore supply may be overblown according to HSBC which predicts supply growth of 3.7 percent in 2013, 5.5 percent in 2014 and 6.6 percent in 2015. Iron ore prices are, in general, expected to stay over $115 for the next two years. Australia’s Bureau of Resources & Energy Economics (BREE) in Australia revised its forecast for average spot iron ore prices in 2013 to US$125/tonne CFR China.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products Prices North America
BREAKING NEWS: NLMK USA up $50/ton on HR and CR, up $100/ton on coated
NLMK USA plans to increase prices for hot-rolled and cold-rolled coil by at least $50 per short ton (st). The move is effective immediately for all spot orders, the steelmaker said in a letter to customers on Friday.
SMU Price Ranges: Sheet floor holds as market debates upside
Our average HR coil price increased $5/short ton from last week, marking a second consecutive week of modest gains. Market participants generally attributed the increase to...
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.
SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).