Scrap, iron ore and steel export markets improved in August

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

2 Sep 2010

The Platts ferrous scrap and iron ore price assessments trended up in August by mostly double-digit percentages compared with July. Steel export prices from China and the Black Sea region also moved higher, but to a lesser extent, while regional product pricing continued toerode.
A number of global steel analysts had expected July's steel-product pricing to be the bottom of the current cycle, but 14 of the 20 regionalPlatts finished-product price assessments declined again in August.
The ferrous scrap price assessments, however, continued to build upon July's upward momentum and iron ore also bounced back in August after losing ground the previous month.
The Platts average IODEX 62%-Fe iron ore fines assessment in August increased 15.1% to $144.05/dry mt CFR North China from July's $125.14/dmt. The benchmark iron ore price started rallying late in July and peaked at amid point of $147.50/dmt on Aug 18-19. It then took a downward turn and finished at $140/dmt on Aug 31.
Another key steelmaking raw material, hard coking coal, was relatively flat in August compared with July. The Platts assessment for HCC averaged $195.76/mt CFR China, losing only $1.01 from July's average of $196.77/mt CFRChina.
Ferrous scrap again led the way in terms of the strongest price gains.
The average price of European A3 grade picked up 15.4% in August to $364.62/mt FOB Black Sea from $315.95/mt in July. Europe's heavy melting scrap also increased in August -- by 15.8% to $358.29/mt FOB Rotterdam from July's average of $309.32/mt. Ferrous scrap in the US also moved higher from July.
The Platts shredded scrap assessment increased 7.3% in August to an average of $353.75/lt delivered to US Midwest mills from $329.76/lt.
SOME FINISHED PRODUCTS PIGGYBACK RAW MATERIAL PRICE GAINS
Tending to follow the rally in scrap and iron ore, a few finished-steel price assessments also increased in August. Mediterranean rebar, most notably,picked up 10.6% over July to $578.57/mt FOB Turkey -- a gain of nearly $56/mt from July's average of $522.95/mt.
Export pricing from China also moved higher during August. The rebar price assessment increased 5.8% to $586.25/mt FOB China from July's $554/mt average. Hot-rolled coil gained 4.1% to $598.75/mt FOB China from July's $575/mt.
Some other flat-rolled product assessments also edged higher. CIS-region hot-rolled coil inched up 1.5% in August to an average of $568.81/mt FOB Black Sea from July's $560.34/mt. Cold-rolled coil from the region was stable.
The hot-rolled coil domestic-made and import assessments for Europe both declined in August by 2.5% and 2%, respectively, to Eur552.86/mt ex-works Ruhrand Eur 509.98/mt CIF Antwerp. US HRC prices were down 4.3% from domestic millsand slipped 4.6% for imported material. The US-made assessment closed August at an average of $577.50/st ex-works Indiana, and the import assessment moved lower to $565.91/st CIF Houston.
Plate declined the most across all regions, with the exception of US-imported material, which was unchanged from July. The three other regional plate assessments were all down between 4.6-6.1%.
The average value of the dollar was unchanged in August relative to the euro. The July US$-Euro exchange rate used in the Platts daily price conversions again averaged Eur0.78, compared with the same rate in July, June's Eur0.82 and May's Eur0.80.

Source: Platts