End-2016 changes in steelmaking input costs

If you are watching steelmaking input costs, you will have noticed the marked increases in input costs of recent months. For example,

- Thermal coal has moved from $78/tonne in September to $107 in November 2016 (Australian coal, fob Newcastle/Port Kembla)

- Iron ore has moved from $57/tonne to $72/tonne (Chinese imported iron ore fines (62% Fe spot, CFR Tianjin port)

- Natural gas has increased from $4.01 to $4.54/m BTUs (Russian origin - border price in Germany expressed in US $ per million metric British Thermal Units).

The full time series for these costs can be seen at http://www.steelonthenet.com/commodity-prices.html.

According to Platts, met coke prices also doubled earlier this year (see http://www.platts.com/latest-news/metals/singapore/seaborne-metallurgical-coke-price-doubles-jan-27661511).

Surely steel prices will catch up soon?

blogger@steelonthenet.com