Raw Steels MMI: Ongoing Decline in Steel Prices

The Raw Steels Monthly Metals Index (MMI) remained relatively stable from August to September, registering a modest decline of 0.96%.

Steel prices continue to exhibit a downward trajectory, with limited indications of near-term recovery. Lead times at mills have shortened, and demand conditions remain weak, signaling the potential for further price erosion absent a shift in supply dynamics. While scheduled maintenance outages may provide producers with an opportunity to manage output and stabilize pricing, the overall extent of capacity reductions for the year remains uncertain.

Moreover, U.S. imports of hot-rolled coil (HRC), cold-rolled coil (CRC), and hot-dipped galvanized (HDG) products have declined, influenced by tariff measures and subdued domestic demand, further impacting supply conditions. Futures markets for HRC suggest a potential stabilization in pricing, reflecting investor sentiment that the market may be approaching a bottom. Nonetheless, the outlook remains contingent upon potential adjustments in trade policy and international agreements.

Major Developments in Raw Material and Steel Prices

• Chinese hot-rolled coil (HRC) prices remained relatively stable, posting a modest increase of 0.38% to $428 per short ton as of September 1.
• Chinese steel slab prices recorded a 0.36% increase, reaching $521 per metric ton.
• Chinese coking coal prices stabilized, registering a decline of 0.96% to $162 per metric ton.
• London Metal Exchange (LME) primary three-month steel scrap prices decreased by 1.98% to $346 per metric ton.
• Standard Korean steel scrap prices declined by 2.55%, amounting to $189 per metric ton.

Source: Metal Miner