China’s steel-product exports rose to a record as the economy cools while iron ore imports slid with prices.
Shipments in November increased 14 percent from the previous month to 9.72 million metric tons, according to data from the country’s customs administration today. Total exports in the first 11 months of 2014 are 47 percent higher than the same period last year at 83.6 million tons. Imports of iron ore, the main material for steel making, fell 15 percent last month to the lowest since February.
China’s steel exports have set records for three straight months as a slowing expansion and cooling construction sector damp demand. The country’s economy is forecast to grow at the slowest pace since 1990. China’s ruling Politburo last week said it will maintain a prudent monetary stance and keep growth within a reasonable range next year.
“Many trading houses doing business with end-users told us the market is terrible,” said Zeng Jiesheng, a Shanghai-based analyst with Mysteel.com, a researcher. “Steel mills were inclined to produce partly due to the low iron ore prices while demand in foreign markets picked up.”
The price of iron ore, a feedstock for blast furnaces, slumped 47 percent this year in China, falling below $70 for the first time since June 2009 on Nov. 25. Imports in November declined for the second month to 67.4 million tons, customs data showed today.
The country’s crude steel output rose 5 percent in the first 10 months of the year to 685 million tons, according to the latest figures from National Bureau of Statistics.
Baoshan Iron & Steel Co., China’s biggest publicly-traded steelmaker, cautioned in October that this quarter would be difficult for the company, reflecting the challenges facing an industry beset by overcapacity, a slowing domestic market and simmering trade tensions.
The price of steel reinforcement-bar, or rebar, used mostly in construction, declined 29 percent this year to 2,542 yuan a ton on the Shanghai Futures Exchange.
Scrap Metal Prices
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC, 27610
Scrap Metal Prices have been falling for more than a year. Copper is at multi year lows and steel is close to multi years lows. Metals are part of the global economy and the bad news is China and Europe are not using growing like they were. This means that scrap metal from Europe, instead of being used there, is coming to the U.S. and is going to China. Also, China is shipping finished Steel to the U.S., so it is hurting the U.S. steel industry and they are buying less scrap metal. See the article below.
Bottom line is, we see copper staying at this low level for a while and importantly in about 10 days or so we see that we will be dropping scrap metal steel prices over $1.00 and could be as much as $2.00.
We will continue to try and do our best to be Fair, Fast and Friendly to bring the most value to you, our customers.
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China Steel Exports Rise to Record While Iron Ore Imports Slide