Read more at: http://www.livemint.com/Money/RtXCpGAuRWlP37g2FdoJhJ/Global-steel-output-stutters.html?utm_source=copy
Read more at: http://www.livemint.com/Money/RtXCpGAuRWlP37g2FdoJhJ/Global-steel-output-stutters.html?utm_source=copy
The outlook for steel continues to slip. Two months ago, iron ore prices were at $80 a tonne and crude steel output for August grew by 1.4% over a year ago.
On Friday, Bloomberg reported that iron ore prices were at $70 a tonne. A day earlier, crude steel output for October was released by the World Steel Association, and is unchanged from over a year ago.
China’s steel output declined by 0.3% during the month, while output was slightly lower on a sequential basis. Among developed markets, the European Union’s steel output rose by 1.5%,while the Americas reported slender growth. But other parts of Europe, especially the Commonwealth of Independent States, and Africa showed a significant decline in output. India’s output is shown as having risen by 8.5%, but this is based on estimates and not actuals.
China’s demand is weak but output is not falling in sync, which is putting pressure on the demand-supply situation. Exports of steel are putting pressure on prices in markets, both near and far. Global steel capacity utilization is 74.7%. The falling costs of iron ore, coal and fuel could be giving some cushion to producers. Tough times lie ahead and the industry needs to either see tighter supply conditions or better demand, neither of which seems probable in the near to medium term.
Source: Live Mint