Increases in European blast furnace coke prices

There is much talk at present of the marked increases in world iron ore prices, in the last 12 months.

 

However, we notice that blast furnace coke prices have also increased very dramatically. European  metallurgical coke has increased from ~$200/t at the start of the year, to near on $300/tonne in April 2021 (export prices, fob basis). That is equivalent to a price increase of around 50%.

 

For recent and historic European coke prices, visit us at https://www.steelonthenet.com/files/blast-furnace-coke.html.

 

Andrew M Kotas

 

EU steel flat product prices to rebound in early 2013

According to a MEPS report published today, a steel price recovery is to be expected in Europe early in the New Year. This is seen as the result of a combination of factors, mostly on the supply side. These factors include reduced European steel production, lower imports and higher steel export volumes.

 

These factors will significantly tighten supply and, in turn, should (according to MEPS) lead to rising steel prices in the New Year.

 

For full MEPS report, see http://www.meps.co.uk/Keynote10-12.htm, taken from the European Steel Review.

 

blogger@steelonthenet.com

 

European coke prices

We now show European blast furnace coke prices on our website. The data indicate recent and historic metallurgical coke prices [f.o.b. export prices] in Euro per metric tonne. Visitors should go to http://www.steelonthenet.com/files/blast-furnace-coke.html.

 

blogger@steelonthenet.com

Steel price forecast for 2011

MEPS have just published their view of expected year 2011 steel price changes across Europe. After a 31% rise in the steel price index across 2010, the expectation is for a ‘double-digit’ percentage rise in EU steel prices in 2011.

For further information, see the MEPS report at http://www.meps.co.uk/keynote12-10.htm.

blogger@steelonthenet.com

Nickel through the $25,000 barrier

Whilst there was much comment in mid-2008 when nickel prices peaked at $20,000 per metric tonne, the metal price rose above $25,000 just recently. With suspension of BHP's mining operations in Western Australia after a recent fatality, the supply demand balance for nickel is starting to look as if further price rises might be expected.

2010 iron ore prices increase

It would seem that the iron ore price settlement this year will see a price increase of ~80-90% over 2009 price levels.

In a vociferous response, EUROFER today launched a bitter attack on the iron ore supply sector. A press release issued this morning [see http://www.steelonthenet.com/pdf/Eurofer_11-Mar-10.pdf ], stressed the outrage felt by the European steel industry at the proposed extent of the price increases.

'These increases come whilst the industry is still reeling from the effects of the most serious financial and economic crisis since the 1930s' said EUROFER. 'European Governments should be aware of the implications for the wider economy if these price increases become reality' it added.

blogger@steelonthenet.com

World iron ore price - 2009 reduction

Well, it looks like the Chinese will be pushing for a 2009 iron ore price settlement near to a 40% price reduction. That is a little more of a price fall than we discussed in a previous blog, but arguably the recession has set in harder and longer now.

For the latest discussions about China's stance on iron ore prices, see http://en.ce.cn/Industries/Basic-industries/200903/09/t20090309_18436351.shtml.

blogger@steelonthenet.com

European steel prices collapse

MEPS today report a collapse in European steel prices. Weak end-user demand in France, frozen market activity in Italy, depressed UK demand, a wait and see approach in the Belgian market, a severe decline in orders in Spain ... all complete a pretty desperate picture for steelmakers as the impact of the worldwide credit crisis starts to bite. For full report, see http://www.meps.co.uk/keynote10-08.htm.

blogger@steelonthenet.com

Iron ore prices 2009

As we enter the last quarter of 2008, so discussions commence on the 2009 iron ore price level. Following on from the mid-contract 20% price rise sought for Chinese consumers by Vale just weeks ago [September 2008], industry talk at present is of a 30% iron ore price increase in 2009. This would of course follow the massive price rises of between 65% to 95% seen during 2008.

For further reports on the expected price increase, see http://www.ft.com/cms/s/0/7e5152dc-7b3d-11dd-b839-000077b07658.html

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

2008 steelmaking costs rise steeply

As discussions centre on crude oil prices hitting $100 a barrel this week, steel portal www.steelonthenet.com has recalculated current steelmaking costs with the latest inputs prices for scrap, electricity, coal etc.

Even before the expected 2008 price increase for iron ore, steelmaking costs for a typical West European steelmaker have risen some 35-40% in the 12 months since January 2007. Electric arc furnace steelmaking currently costs approx $447 per tonne of liquid steel. BOF steelmaking currently costs $353 per tonne. The figures compare to costs of $321 and $262 respectively exactly one year ago.

The summary cost calculations behind the current figures are shown online at www.steelonthenet.com/steel_cost_eaf.html and www.steelonthenet.com/steel_cost_bof.html. Interestingly, the cost differential between BOF and electric steelmaking has swung towards integrated steelmaking, which is now $94/tonne cheaper [at liquid steel level] than scrap-based steelmaking.

It remains to be seen how this differential will be affected by the current round of negotiations about 2008 iron ore prices. The expected iron ore price rises seem very likely to push mid-2008 BOF steelmaking costs towards $400/tonne liquid steel, and EAF steelmaking towards $500/t meaning that these costs will more than 50% above end-2006 price levels.

It certainly seems like a good time to be selling scrap ...

blogger@steelonthenet.com

Iron ore prices 2008

Reports are coming in that the forthcoming round of iron ore price negotiations could result in some quite large price increases once again.

The main issue seems to be the very tight iron ore market today. Price negotiations are therefore expected to move one way only - and this is upwards.

Some analysts even consider that the 2007 / 2008 iron ore price rise - in percentage terms - could even be as high the 71% rise seen around March 2005.

To read more on this topic, visit http://www.busrep.co.za/index.php?fArticleId=4033500&fSectionId=552&fSetId=662

blogger@steelonthenet.com

Stainless steel forecast 2007

World production of stainless steel is forecast to reach 29 million metric tonnes in 2007 [crude steel equivalent], according to projections just published by MEPS

This forecast represents an increase of just 2.2% on 2006 output. Orders seems few and far between as stocks are consumed, and as purchases are delayed in anticipation of surcharges tumbling in the coming months, as alloy metal prices fall.

For full MEPS article (including regional stainless production forecasts) see http://www.meps.co.uk/editorial8-07.htm.

blogger@steelonthenet.com

Steel prices to fall in 2007

MEPS today suggest that flat product steel prices will be falling worldwide by end 2007. New capacity coming onstream, VAT changes and increased exports from China underly the predicted price weakness.

For original report see http://www.meps.co.uk/steel-price-forecast-asia4-07.htm.

blogger@steelonthenet.com

Nickel content in stainless steel declining [MEPS]

Soaring nickel prices [see daily price chart at http://www.steelonthenet.com/feeds/nickel.php] are driving buyers of austenitic stainless steels to substitute products. Although much of the substitution is taking place within stainless steel (especially in favour of type 430 ferritic and of 200-series grades), coated carbon steels are coming increasingly into consideration.

For the latest report on these trends, visit MEPS at http://www.meps.co.uk/editorial4-07.htm.

blogger@steelonthenet.com