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Metal Prices Recover as Rising Input Costs Threaten Sustainability
Metal prices went up in several markets during August.
This suggests that the metal industry may be recovering.
In India, rebar and hot-rolled coil prices increased noticeably.
Planned factory maintenance, limited supplies, lower inventories and demand helped support prices.
However, the costs of materials used to make steel are sending mixed signals.
Australian iron ore became cheaper, but NMDC raised its lump ore price for September.
India’s steel production also increased to 14.4 million tonnes.
The report says higher input costs could make the recovery harder to maintain.
Global hot-rolled coil prices rose about 3% month-on-month in both the United States and Europe during August, while China’s export prices were broadly unchanged.
Indian rebar prices increased nearly 10% month-on-month and 12% year-on-year after falling for three consecutive months.
Domestic Indian hot-rolled coil prices rose about 2% month-on-month and 19% year-on-year.
Australian iron ore prices declined, but NMDC announced a ₹150-per-tonne increase in lump ore prices for September.
India’s crude steel production rose 3% year-on-year and 2% month-on-month to 14.4 million tonnes, while several non-ferrous metals also gained.
- Who
- Metal producers and markets, including India’s steel industry, are covered in a Centrum report.
- What
- Metal prices strengthened in August, while changing raw-material costs created uncertainty about whether the recovery can continue.
- Where
- The developments involved India, the United States, Europe, China, Australia and other global markets.
- When
- The report covers August price and production movements, with an input-price change announced for September.
- Why
- Prices were supported by tighter supplies, plant maintenance, controlled dispatches, limited availability and demand, while input costs remain a potential challenge.
Recovery Signals
Cost Concerns
Can the price recovery continue?
Recovery Signals
Improved steel prices, tighter supplies, lower inventories, controlled dispatches and healthy demand indicate strengthening market conditions.
Cost Concerns
Rising or unpredictable raw-material costs could reduce the durability of the recovery, even as metal prices improve.
Supply and demand conditions
Recovery Signals
Planned maintenance shutdowns, limited availability and stronger Middle East demand supported Indian and global steel prices.
Cost Concerns
Demand conditions remained mixed, and global crude steel production declined month-on-month in July.
Key facts
- Indian rebar prices
- Up nearly 10% month-on-month and 12% year-on-year in August.
- Indian domestic HRC prices
- Up about 2% month-on-month and 19% year-on-year.
- Global crude steel production
- Fell about 4% month-on-month to 149.2 million tonnes in July.
- India crude steel production
- Reached 14.4 million tonnes, up 3% year-on-year and 2% month-on-month.
- Iron ore
- Australian prices fell about 2% month-on-month and 3% year-on-year.
- NMDC September pricing
- Lump ore prices rose ₹150 per tonne; fines prices were unchanged.
- Non-ferrous metals
- Aluminium rose 3%, zinc 8%, copper 6%, and lead and nickel about 1% month-on-month in August.
Sources
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