The iron ore and coking coal markets have shed gains made in
recent months, with many market participants seeing potential
downside for prices in the days to come before they find a
Amid this scenario, Metal Bulletin looked at just how low can steelmaking raw materials prices
Seaborne iron ore prices picked up on Friday May 19 amid a
surge in China's steel futures, which gave a boost to trading
activity. Metal Bulletin’s 62% Fe Iron Ore
Index came to $62.69 per tonne cfr Qingdao
, up by $1.09 per
tonne on a daily basis.
Trading activity finally picked up in the seaborne
coking coal spot market
as the week drew to an end, albeit
not enough to rid it of bearish sentiment.
Metal Bulletin's fob Australia premium hard coking coal index
fell $3.96 per tonne to $155.91 per tonne. The fob Australia
hard coking coal index was unchanged, at $150.10 per tonne, as
were the cfr China indices, at $162.84 per tonne for premium
hard coking coal and $155.47 for hard coking coal.
This week’s positive news for the coking coal
sector was the reopening of the Goonyella coal rail system in
, following heavy rainfall in the
In terms of scrap, Turkey’s steel mills continued
their deep-sea purchases for June this week, with prices showing a slight decrease
import and US export prices were
Meanwhile, Indian import prices went down, from Monday May 15
to Friday May 19, as buyers stayed out of the market
that markets could collapse during the slowdown in the Islamic
holy month of Ramadan.
The advance of the paper market in China led rebar
and hot rolled coil
(HRC) spot prices to rise
Domestic prices for rebar in Poland have
over the past week due to competition
from cheap imports.
Import prices for re-rolling-grade HRC in
dropped over the past week, but then
started to move up again on an unexpected turnaround in
China’s domestic market.
The flat steel market in the UAE was slow this
as the Islamic holy month of Ramadan will start in
about ten days’ time, and the summer holiday
season is also close.
Metal Bulletin launched a weekly index for
CIS-origin export steel billet
on an fob Black
Sea basis. The index, which was launched on May 15, has
replaced the CIS export billet $ per tonne fob Black Sea ports
Turkish billet prices increased in line with
rising domestic rebar values
over the past week.
Steel billet importers in Southeast Asia stepped up
their procurement deals
over the past week amid firm offers
The continuing correction in coking coal prices, coupled with a
weak iron ore market and pressure from cheap flat steel
products from China, was expected to push slab prices down
further in May, according to Metal Bulletin’s global slab
In Latin America, slab export prices dropped this week
producers reduced offers amid lower raw materials costs and
falling international flat steel prices.
The US Commerce Department set final anti-dumping margins on
rebar imports from Turkey and Japan
, a measure considered "scandalous
" by the Turkish Steel
Exporters’ Assn (ÇIB).
India set definitive anti-dumping duties on cold rolled
and hot rolled
Malaysia has initiated an anti-dumping
into imports of stainless cold rolled
steel from China, South Korea, Taiwan and Thailand.
Australia has initiated a review of anti-dumping duties
affecting Chinese exporters of certain galvanized flat steel products
, as well as
extended a deadline for an anti-dumping probe into galvanized steel from
India, Malaysia and Vietnam
The Eurasian Economic Commission has extended its anti-dumping duties against
imports of cold-rolled flat steel products with polymer
originating from China.
Around the world
Metal Bulletin has reported extensively from the Made in Steel
Milan and Eurometal events in Italy during the week.
Italian steelmaker Feralpi, for instance, said it continues
export-led growth with its new French mill
and that the Algerian rebar export market should remain
quiet until 2020
Also, Michele Tacchini, president of Italian steel trade
association Assofermet Ferramenta, said the Italian steel distribution sector could see
after the sale of Taranto-based steelmaker
Ilva is complete.
And European steel trade federation Eurometal said that trade cases opened by the European Commission
(EC) have led to a fall in steel imports
from the exporting
countries under investigation.
Metal Bulletin’s team also attended the
International Stainless Steel Forum’s (ISSF) 21st
annual conference in Tokyo, Japan, where the association
said that the growth rate of global stainless steel
consumption is expected to slow down
over the next two
Click here to see the six things
that Metal Bulletin learned
from the event.
Brazil-based steel group Gerdau is advancing talks to divest its assets
in Mexico and India
, as well as soon sell off its Rancho Cucamonga rebar mill in
, USA, according to sources.
In both cases, Gerdau said it does not comment on market
rumours, but emphasised that "it continues with its assets
evaluations strategy, aimed at focusing its efforts on the most
In China, crude steel output rose to a new high
, reaching 72.78 million tonnes, according to data
released by the country’s National Bureau of
And finally, in South America, the latest political turmoil is bringing uncertainty to
Brazil's metals markets