According to Worldsteel, world crude steel production reached 1,691.2 million tonnes in 2017, representing an increase of 5.3% from 2016. China’s crude steel production decreased seasonally in the quarter ended 31 December 2017 by 6.8% as compared to the quarter ended 30 September 2017, but was 3.4% higher than the quarter ended 31 December 2016. Overall, China’s annual crude steel production in 2017 amounted to 831.7 million tonnes, an increase of 5.7% as compared to 2016. The World Steel Association forecasted that global steel demand will reach 1,648.1 million tonnes in 2018 in the last available Short Range Outlook in October 2017. Metal Bulletin reported that prices of 44% Mn ore closed at US$6.88/dmtu CIF China at the end of December 2017. This represented an increase of US$0.34/dmtu from the previous quarter of US$6.54/dmtu CIF China. Prices have risen three quarters in a row (from the quarter ended 30 June 2017 to the quarter ended 31 December 2017) as a result of sustained and strengthening demand from the recovery in global steel production. Platts reported that prices of FeSi to Japan closed at $1,840 per metric tonne at the end of December 2017, up from $1,380 per metric tonne at the end of September 2017. The price spike at the end of 2017 was the result of ferroalloy plant closures in China due to the enforcement of environmental policies to combat winter air pollution. While market anxiety has eased to some extent, Chinese environmental policy continues to be a major factor closely watched by all market participants.
PM1 Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
