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

Iron ore price forecast

The international iron ore price is set to collapse later this year. According to a new analysts’ report, the price of the raw material will drop to a year-end low of $US37 a tonne, averaging $US47 in the fourth quarter and $US38 in the first three months of 2017.

For full analyst report, see http://www.smh.com.au/business/mining-and-resources/iron-ore-market-seen-collapsing-below-last-years-nadir-20160826-gr24yi.html

blogger@steelonthenet.com

Iron ore prices on the rise

Iron ore prices have risen approx. 22.5% in the last seven weeks from $117 to $143.50 per ton, due to severe weather in the two countries responsible for 70% of iron ore production – that is Australia and Brazil. For report, see http://www.topix.com/business/steel/2012/01/as-iron-ore-hits-a-7-week-high-a-look-at-hedging-steel-makers

 

blogger@steelonthenet.com