Steel Products Prices North America
Iron Ore Spot Pricing Breaks Through $88 Support Level
Written by John Packard
August 28, 2014
According to The Steel Index (TSI) spot 62% Fe iron ore fines pricing dropped below $88/dmt and are now at the lowest level recorded since October 2009. TSI reported 62% Fe fines this morning as being $87.30 per dry metric ton (dmt).
Iron ore has been sliding since mid-August 2013 when 62% Fe fines where trading at $142.8/dmt. Since that time iron ore has dropped 39 percent.
During the slide iron ore reached $89.0/dmt on June 16, 2014 and then briefly rallied to $96.6/dmt on month later. Over the past month ore is down $8.3/dmt or 8.7 percent. Over the last week alone iron ore prices have dropped by 5 percent.
“The iron ore market has moved into oversupply at a time China’s economy is slowing, putting downward pressure on iron ore spot prices,” said TSI senior analyst Oscar Tarneberg. “The summer period has seen the usual seasonal slowdown in demand exacerbated by fresh concerns about the health of China’s property sector, and a weakening in previously resilient steel export prices.”
Cost of production out of the Australian mines is reported to be $40 to $50/dmt so there is more room for ore to move should market forces continue to force prices lower.
John Packard
Read more from John PackardLatest in Steel Products Prices North America
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.
SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).
Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.
SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.