This morning in metals news: MetalMiner’s Stuart Burns weighed in on the outlook for iron ore prices and steel prices throughout the remainder of this year; the unemployment rate was unchanged in April; and the copper price has soared past the $10,000 per metric ton mark.
Iron ore prices likely to remain elevated
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Commenting on MarketWatch, MetalMiner’s Stuart Burns said steel prices are likely to lose some steam in the second half of the year. In turn, so will iron ore price.
However, the drop is not likely to be significant. In fact, he noted he expects prices to remain elevated for the balance of the year.
Iron-ore prices hit record high with appetite for steel ‘far beyond expectations’
Iron ore logged its highest price on record Thursday, buoyed by insatiable demand for steel in China.
The benchmark S&P Global Platts IODEX, the spot price of 62% iron- fines delivered to China, was assessed at a record high of $202.65 per dry metric ton on Thursday. It trades up by about 27% from the Dec. 31 price, according to data from S&P Global Platts.
“Appetite for steel has been far beyond expectations as China returned to work [Thursday], helping iron ore fly past this historic milestone,” said Julien Hall, director of Asia metals price reporting at S&P Global Platts, in emailed commentary. The Chinese market was on holiday for Labor Day from May 1 through 5.
Ford released its April sales totals.
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US steel capacity utilization reaches 78.7%
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US steel capacity utilization for the week ending May 1 reached 78.7%, the American Iron and Steel Institute reported.
The rate increased from 78.4% the week before and from 55.2% during the same week in 2020.
Output last week totaled 1,788,000 net tons, or up 44.4% year over year.
US goods and services deficit rises
The US goods and services trade deficit picked up by $3.9 billion in March from the previous month, reaching $74.4 billion.
Oil price holds steady amid ongoing demand uncertainty
While oil prices have gradually recovered to the $60-$65 per barrel range in recent months, further gains likely won t be had until demand is on more stable ground. (We previously touched on the oil price in this space earlier this month.)
That is particularly true as coronavirus cases have surged in India and Japan, two of the top five biggest oil importers. India has posted several days of record-setting COVID-19 cases, with expectations they are going to get even worse, MetalMiner s Stuart Burns wrote. Bloomberg reports that demand for fuels could plunge by 20% in April.
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