Raw Materials Prices: Iron Ore, Coking Coal, Pig Iron, Scrap, Zinc

Raw materials prices have seen varying trends in the past month or two as the coronavirus has had varying effects on different commodities in different parts of the world. Iron ore prices have stayed relatively high due to strong demand in China, where COVID-19 restrictions have been eased. Virus-related disruptions to Brazilian mining operations have added to the tight supplies and uptrend in iron ore. Strong steel production in China also has boosted demand and prices for pig iron. In the U.S. scrap collection has rebounded as more businesses have gotten back to work. Thus, the price of shredded scrap has declined as supplies have grown. Prime scrap supplies remain relatively tight, however, as automakers continue to ramp up, keeping busheling prices elevated.

Table 1 summarizes the price changes through June 12 of the five materials considered in this analysis. It reports the month/month, three months/three months and year/year changes on a percentage basis.