Steel prices to reach $1000 per tonne

According to a MEPS report published today, steel prices are headed toward $1000 per tonne. This would bring steel prices back to their levels of July 2008, which was the last steel pricing peak before the crash.

Driven by higher steelmaking input costs [including coking coal, iron ore as well as steel scrap], the current expectation is for world steel prices to reach $1000 per metric tonne by Q3 2011.

 

To read the MEPS report, visit http://www.meps.co.uk/MepsNewsSteelPrices2011.htm

 

blogger@steelonthenet.com

 

Coking coal prices 2008

Press reports are circulating (and quoting ArcelorMittal) about expected increases in coking coal prices of some 150-200%. This would add to the 65% increase in iron ore costs seen in January 2008, and to last month's near $100/tonne increase in scrap prices. Current coking coal prices are just under $100 per short ton [see http://www.steelonthenet.com/commodity_prices.html] and today make up around $65 of the total cost of a (metric) tonne of liquid steel through the integrated steelmaking route [see http://www.steelonthenet.com/steel_cost_bof.html].

For original report on the expected coking coal price increases see
http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-24_2299142.

blogger@steelonthenet.com