Boom in Steel prices prompt to reopen shuttered mills

Industry News 10:26:17AM May 13, 2016 Source:SMM

UNITED KINGDOM May 12 2016 4:11 PM

LONDON (Scrap Register): Surging  demand for steel led to trader inventories dipping to an all-time low and  soaring finished prices, which in turn helped open up steel-making margins,  reported the Steel Index.


However, the boom in steel prices also prompted  many previously shuttered mills to reignite their idled furnaces, again raising  the spectre of oversupply further down the road.

There was continued  strength in iron ore pricing in April, as the TSI 62% Fe iron ore benchmark  price averaged over 7% higher than in March. The index rose above $60/dry metric  tonne CFR Tianjin port mark for the first time since last summer, and at one  point came within a hair’s breadth of touching $70/dmt.

The most recent  data showed China’s imports of iron ore in March rising 17% from the low volumes  seen in February, when the week-long Lunar New Year holiday saw a drastic  curtailment of Chinese buying, TSI added.

With volatility still high, the  trade in iron ore swaps, options and futures had another strong month as market  participants sought to lay off price risk in the financial markets. Open  interest on Singapore Exchange (SGX) reached an all-time high.


Key Words:  steel prices 
Relative News

Boom in Steel prices prompt to reopen shuttered mills

Industry News 10:26:17AM May 13, 2016 Source:SMM

UNITED KINGDOM May 12 2016 4:11 PM

LONDON (Scrap Register): Surging  demand for steel led to trader inventories dipping to an all-time low and  soaring finished prices, which in turn helped open up steel-making margins,  reported the Steel Index.


However, the boom in steel prices also prompted  many previously shuttered mills to reignite their idled furnaces, again raising  the spectre of oversupply further down the road.

There was continued  strength in iron ore pricing in April, as the TSI 62% Fe iron ore benchmark  price averaged over 7% higher than in March. The index rose above $60/dry metric  tonne CFR Tianjin port mark for the first time since last summer, and at one  point came within a hair’s breadth of touching $70/dmt.

The most recent  data showed China’s imports of iron ore in March rising 17% from the low volumes  seen in February, when the week-long Lunar New Year holiday saw a drastic  curtailment of Chinese buying, TSI added.

With volatility still high, the  trade in iron ore swaps, options and futures had another strong month as market  participants sought to lay off price risk in the financial markets. Open  interest on Singapore Exchange (SGX) reached an all-time high.


Key Words:  steel prices