Global Steel Prices Are Cooling Off As Production Declines

Steel prices continue to cool heading toward the year’s end, MetalMiner Insights data indicate; meanwhile, global crude steel production continued to decline in November; and, finally, the U.S. exported more petroleum and crude oil products than it imported in the first half of 2021.

Steel prices cool to close the year

U.S. steel prices remain elevated compared with historical levels.

However, steel prices have begun to cool over the last couple of months in 2021, MetalMiner Insights data indicate.

U.S. cold-rolled coil closed last week at $2,053 per short ton, or down 2.6% month over month. However, the price remains well above the December 2019 price of just over $1,018 per short ton.

Meanwhile, U.S. hot rolled coil is down 5.7% month over month to $1,690 per short ton. The price is up from the December 2019 price of around $910 per short ton.

Global crude steel production declines

Global crude steel production fell by 9.9% year over year in November, the World Steel Association reported.

Global production reached 143.3 million metric tons during the month.

Related: Brazil Rushes Ahead With Key Oil Projects As Prices Remain Elevated

Top steel producer China has seen declining output since March 2021. China’s November production dropped 22% year over year to 69.3 million metric tons.

U.S. petroleum, crude oil product exports edge imports

The U.S. exported more petroleum and crude oil products than it imported in the first half of this year, the Energy Information Administration reported.

Exports exceeded imports by about 120,000 barrels per day during the period.

“The United States was a net importer of crude oil and petroleum products (imported more than it exported) in the first of half of each year until the first half of 2020, when the United States became a net exporter (exported more than it imported) by 432,000 b/d of crude oil and petroleum products,” the EIA reported. “This year marks only the second time the United States has been a net total petroleum exporter in the first half of the year. The United States has been a net exporter of petroleum products alone since 2011.”

By AG Metal Miner

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