Steel Products Prices North America
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/230fd5af9a5334bc5dfa77443d6931eb.jpg)
CRU: Iron Ore Surging Towards $120/dmt
Written by Eduardo Tinti
August 4, 2020
By CRU Research Analyst Eduardo Tinti, from CRU’s Steelmaking Raw Materials Monitor
Last week, iron ore prices rallied, rising by $10.7 /dmt w/w. This was mainly due to very strong Chinese demand driven by high steelmaking margins, BFs operating at historic high capacity utilization rates and bullish market sentiment. Albeit rising iron ore inventories at ports, steel mills continue to operate with low levels of stock at hand and have no room to delay purchases to wait for lower prices. On Tuesday, Aug. 4, CRU assessed the 62% Fe fines price at $118.0 /dmt.
Chinese finished steel prices rose again last week. Many construction sites resumed operations after the rainy season ended. As a result, rebar demand lifted, pushing up prices by RMB40 /t w/w. Meanwhile, HRC prices rose more sharply, by RMB130 /t w/w. Robust sheet demand was fueled by positive market sentiment as the Caixin Manufacturing PMI came in at 52.8, the highest level since February 2011, indicating that the Chinese manufacturing sector is performing extremely well. Rising finished steel prices are boosting steelmakers’ margins and incentivizing mills to maximize production. As a result, and with BFs restarting in Tangshan, BF capacity utilization in the country reached the historic high level of 90 percent, providing ample support for iron ore demand.
Meanwhile, seaborne supply remained healthy and broadly steady w/w. In Australia, port Hedland shipments rose slightly w/w to 9.9 Mt as Roy Hill resumed exports after concluding its scheduled shiploader maintenance. Lower exports from Rio Tinto were partially offset by improving shipments from southern and northern Brazil.
Chinese ports continue to face offloading delays as Covid-19 checks in ships’ crews remain in place. Consequently, vessel congestion is still observed at Chinese shores; 159 vessels are currently waiting to offload their cargo compared to 165 last week. This reduction in vessels waiting to offload contributed to rising iron ore stock at ports, now at 114 Mt from 113 Mt last week and 108 Mt a month ago. However, steel mills’ iron ore stocks at hand remain low and mills rely on new purchases to keep their operations running, which contributes to stubbornly high prices.
Chinese steel mills have been charging higher rates of lump recently. This is due to low lump premium and to sintering restrictions in the Hebei province. Such restrictions are expected to end soon, which will push lump rates down.
In the coming week, we expect iron ore prices to lose momentum and decline as seaborne supply remains healthy and, despite the vessel congestion at ports, iron ore availability increases in China. As an upside risk, extremely optimistic sentiment in the Chinese market may continue to boost prices, but we believe market fundamentals will prevail and prices will fall from current heights.
Request more information about this topic.
Learn more about CRU’s services at www.crugroup.com
Eduardo Tinti
Read more from Eduardo TintiLatest in Steel Products Prices North America
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Longs pricing trends diverge in North, South America
Most longs prices in the US were unchanged this month, except for rebar, which declined by $1.50/cwt ($30/short ton) m/m. While end-use demand is stable, inventories are well-stocked, keeping purchases limited. Domestic availability is sufficient to meet current demand, hindering the appetite for imported material. Meanwhile, prices for scrap remained under pressure in June, with […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor cuts plate prices by $125/ton, cites ongoing competition
Nucor Corp. announced that its plate mill group would cut prices for as-rolled, discrete, and normalized plate with the opening of its August order book.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor cuts HR price for fourth straight week
Nucor lowered its consumer spot price (CSP) for hot-rolled (HR) coil by another $10 per short ton (st) for the first week of July. The steelmaker said in a letter to customers on Monday that its CSP base price for the week will be $670/st for all of its sheet mills with the exception of California Steel Industries (CSI).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sets $720/ton HR price with opening of August books
Cleveland-Cliffs on Tuesday announced its monthly hot-rolled (HR) coil price of $720 per short ton (st) with the official opening of its August order book. The rate is down from last month’s price of $800/st.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]