Daily Steel News - 22 Oct 10

Iron ore reference prices stable - The Steel Index
The latest daily iron ore reference prices released by The Steel Index (TSI) yesterday, show that the prices for both 62% and 58% Fe content iron ore have been fairly stable during the past week, after the sharp increases from a week earlier. The 62% Fe content price wavered on a daily basis, ending slightly lower. Both prices are still around 9% higher than four weeks ago. Average weekly freight rates from Australia and Brazil were stable, but average rates from both coasts of India rose steadily. The reference price for 62% Fe content iron ore fines stood at $151.80/dry metric tonne CFR Tianjin port, China. This is a $0.90/dmt, or 0.6%, decrease on the price a week ago. The reference price for 58% Fe content iron ore fines ended the week $1.10/dmt, or 0.9%, above the level of a week earlier. Daily freight rates from Australia and Brazil to China rose by 3% at the start of the week. Rates from Australia slipped back later, but rates from Brazil continued to firm. Daily freight rates for shipments from east coast of India rose 4.5% from the level at the end of the previous week, while rates from west coast of India rose 8% in midweek before falling back again. TSI is majority-owned by Steel Business Briefing and specialises in compiling steel and iron ore reference prices based on actual transaction data. Further details of the methodology and specifications for the two grades of iron ore can be found on the website www.thesteelindex.com.

World output falls for fourth month in a row
Crude steel production fell for the fourth successive month in September, according to World Steel Association data covering 66 countries. Steel Business Briefing calculates that monthly production has
dropped by almost 10% since it peaked at 124m tonnes in May. September output of 111mt was 0.9% higher than in the same month last year. It took the total for the first nine months of this year to 1,045mt, 19% more than last year’s equivalent figure. China’s September production of 47.9mt was almost 6% lower than the same month in 2009, as steelmakers cut output to meet government-mandated energy saving targets. In contrast, the month saw increases in other Asian countries’ production – of 11% in Japan, 6% in India and 3% in Korea. North American September output, of 9.3mt, was 18% ahead of that of September 2009. The USA, Mexico and Canada all reported gains, but South American production last month was down by 2% year-on-year mostly because of a 36% fall in Venezuela. September production in the European Union was almost 4% greater than the same 2009 month, aided by a near-20% increase in the EU’s second largest steelmaking country, Italy. Turkish production last month was up almost 18%.
CIS crude steel output of 8.7mt was 1.5% lower than in September last year as Ukraine’s output fell 12%.