Raw Steels MMI: Steel Prices Remain Stable in Anticipation of Trade Agreements

The Raw Steels Monthly Metals Index (MMI) recorded a 1.37% increase from June to July, indicating that steel prices remained relatively stable amid the backdrop of developing international trade agreements involving the United States. Key developments include ongoing negotiations with China and the United Kingdom, as well as a newly announced agreement with Vietnam. This agreement introduces significant tariffs that may impact the U.S. steel market.

Historically, steel imports from Vietnam have contributed to downward pressure on U.S. prices; therefore, the effectiveness of the newly imposed tariffs remains to be seen. Further negotiations are also in progress with Canada, the European Union, and Mexico, which may lead to reduced tariff constraints—particularly those related to excess supply originating from China.

Overall, steel prices exhibited a largely sideways trend in June, with slight increases observed in Hot Rolled Coil (HRC) prices. As the third quarter approaches, the industry continues to monitor these developments closely, anticipating possible shifts in pricing dynamics.

Significant Market Movements in Raw Material and Steel Pricing Trends

• Chinese coking coal prices registered the most substantial increase within the index, rising by 10.26% to $118 per metric ton as of July 1.
• S. Midwest Hot Rolled Coil (HRC) futures advanced by 5.96%, reaching $835 per short ton.
• South Korean steel scrap prices increased by 3.07%, bringing the price to $199 per metric ton.
• London Metal Exchange (LME) primary three-month steel scrap prices recorded a modest uptick of 2.36%, reaching $347 per metric ton.
• In contrast, Chinese Hot Rolled Coil (HRC) prices declined by 0.75%, falling to $404 per short ton.
• Chinese steel slab prices experienced a decrease of 3.08%, settling at $502 per metric ton.

Source: Metal Miner