Steel prices climbing higher still

MEPS today suggest that despite steel prices being at an all time high, finished product prices can be expected to go higher still in September. This is despite current prices for hot rolled coil being ~$500-$600 per tonne higher than they were 12 months ago.

For full report, visit http://www.meps.co.uk/viewpoint8-08.htm.

blogger@steelonthenet.com

Steelmaking energy costs

For those steelmakers not watching their energy prices, here is a quick reminder of the changes in recent months.

Looking at steam coal prices [and we use the Australian Port Kembla f.o.b. thermal coal cost benchmark] these costs have risen from ~$72/tonne last summer to $193/t today, which is a 168% rise.

Looking at gas prices [and we use Russian natural gas as our cost benchmark, based on the German border price] these costs have risen from $280 per 1000 m3 last summer to $517 per 1000 m3 today, which is an 85% cost increase.

For regular monthly updates on these prices, visit www.steelonthenet.com/commodity_prices.html.

blogger@steelonthenet.com