Steel Products Prices North America

Met Coal Prices: Supply Outpaces Demand
Written by Sandy Williams
March 11, 2014
Met coal prices are plummeting and oversupply is the problem, says Goldman Sachs. On Friday, Goldman cut its metallurgical coal average price estimate for 2014 to $141 per metric ton from $150 due to higher Australian output and slower demand from China along with “limited U.S. supply rationalization.”
Bank of America Merrill Lynch agrees that miners need to idle capacity to return to more normal pricing but global producers are unwilling to do so. BofAML says the “seven-year low met coal spot prices as reported by Platts reflects a deeply troubled market.”
As of Friday, March 7, Platts reported spot premium low-vol met coal prices FOB Australia were $113.25 per metric ton, down from $119.30 per metric ton the previous week.
Platts says coking coal prices have dropped nearly 30 percent over the past year. Normally, monsoon weather in Australia will slow down exports and push prices up, but the normal pattern hasn’t emerged so far this year.
“Everyone is pointing to potential reasons for the weaker prices, but it most likely comes down to supply-demand fundamentals,” said Platts in the latest issue of Steel Raw Materials Monthly. “The market for hard coking coal is oversupplied and demand is lackluster due to weak steel prices and production in China.”
At the Coaltrans USA Conference last month in Miami, conference participants concurred that global oversupply is a problem. Coltrans USA attendee Ernie Thrasher, CEO of Xcoal, a leading US met coal supplier, estimates that it may take two years to recover from lower revenues and supply rationalization.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products Prices North America

SMU price ranges: Flat-rolled balloon continues to leak
Sheet and plate prices were flat or lower again this week on continued concerns about demand and higher production rates among US mills.

HRC vs. busheling spread narrows in August
The price spread between prime scrap and hot-rolled coil (HRC) narrowed in August, according to SMU’s most recent pricing data.

SMU Price Ranges: Market drifts lower still
All five of SMU's steel sheet and plate price indices declined this week, falling to lows last seen in February.

Discontentment brews in plate market with flat, status-quo pricing
Sources in the carbon and alloy steel plate market said they are less discouraged by market uncertainty resulting from tariffs or foreign relations, but are instead, eager to see disruption to the flat pricing environment.

Nucor lowers HR coil spot price by $15/ton
Nucor has implemented a double-digit price decrease on spot hot-rolled (HR) coil for the second consecutive week.