Sandra Ulbrich

Main Menu

  • Palladium
  • US Steel Prices
  • Iron Prices
  • Copper Prices
  • Saving Investment

Sandra Ulbrich

Header Banner

Sandra Ulbrich

  • Palladium
  • US Steel Prices
  • Iron Prices
  • Copper Prices
  • Saving Investment
US Steel Prices
Home›US Steel Prices›Steel stocks feel pressure from China

Steel stocks feel pressure from China

By Brian D. Smith
May 14, 2021
0
0



Text size

Hot-rolled steel prices in the United States have risen about 50% year-to-date. The rise in prices fueled the rally in the sector’s share prices.

Morris Mac Matzen / AFP via Getty Images

US steelmakers sense how unhappy China is with high iron ore prices.

Their stocks generally fell on Friday, pushed down by iron ore prices that the Chinese government is trying to contain.

Steel in the United States

(symbol: X),

Steel dynamics

(STLD), and

Cleveland-Cliffs

(CLF) were down 1.8%, 0.2% and 3.5%, respectively at midday.

Nucor (NUE)

achieved a 1.1% gain. Steel distributor Reliance Steel & Aluminum (RS) was down 1.3%.

The rest of the market is doing well. the

S&P 500

and

Dow Jones Industrial Average

were up 1.4% and 1% respectively.

Iron ore futures prices triggered the decline in inventories on Friday, falling nearly 10% on reports that the Chinese government has asked steel mills to help control the surge in prices. China is the world’s largest steel producer, with around 55% of all steel production capacity.

Iron ore is an essential raw material in the manufacture of steel. Rising ore prices push up steel prices. Rising steel prices are hurting Chinese manufacturers’ ability to make money.

Iron ore prices are around $ 200 per metric tonne and about 1.5 tonnes of ore produces a tonne of steel. Prices have risen nearly 30% since the start of the year on Friday.

Hot-rolled steel prices, a key benchmark, have not moved on Chinese ore futures. A tonne of hot-rolled steel currently costs about $ 1,500. If the drop in ore prices continues, the price of finished steel will eventually drop around the world.

Hot-rolled steel prices in the United States have risen about 50% year-to-date. The rise in prices fueled the rally in the sector’s share prices.

Shares of US Steel, Nucor, Steel Dynamics and Cliffs are up 61% year-to-date on average. This quartet is up more than 240% on average over the last 12 months.

Write to Al Root at [email protected]



Related posts:

  1. More than wood: building materials are causing price hikes
  2. Listed solar tracker companies bearing the brunt of the costs, showing little sign of slowing down
  3. Steel nail duties will remain in effect after USITC vote
  4. Soaring raw material costs could delay new US chicken plant

Recent Posts

  • Southern Palladium has delayed secondary listing date on JSE
  • Here are the 10 cheapest stocks in the S&P 500 index
  • Ground Breakers: ‘War drones’ and ‘smart mines’ on Australia’s richest woman’s wishlist
  • Africa’s domestic mining sector not severely affected by Russia sanctions – report
  • Everclear Announces 30th Anniversary Tour and Five New York Concerts

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021

Categories

  • Copper Prices
  • Iron Prices
  • Palladium
  • Saving Investment
  • US Steel Prices
  • Terms and Conditions
  • Privacy Policy