Steel prices have risen by more than a third in two months, exacerbating global inflationary pressures as food and energy prices have soared.
The floods in Queensland, Australia, have severely affected the global coking coal supply, prompting manufacturing companies to rush to buy steel. Coking coal is one of the important raw materials for the production of steel.
According to consulting firm CRU, the benchmark US hot-rolled coil prices have risen 37% since the beginning of November last year, reaching $783 per tonne, the highest level in two years.
Spot coking coal prices are as high as $350 per tonne, 55% higher than the quarterly contract price of $225 per tonne reached a few weeks ago.
Another important steel raw material, iron ore, is rapidly approaching historical highs, and the price of benchmark iron ore exported to China has risen by 20% since the beginning of November to reach $178.30 per ton.
“The floods in Queensland have given the steel price a shot in the arm. People are rushing to pick up the goods,†said Ralph Oppenheimer, executive chairman of steel trading company Stemcor.
More than 50% of the global seaborne coking coal market, which is heavily dependent on steel mills in Asia and Western Europe, comes from Queensland.
The Food and Agriculture Organization of the United Nations (FAO) said that as oil prices approached the $100 mark for the first time since 2008 and food prices climbed to historical highs, soaring steel prices could exacerbate concerns about rising inflation.
The floods in Queensland, Australia, have severely affected the global coking coal supply, prompting manufacturing companies to rush to buy steel. Coking coal is one of the important raw materials for the production of steel.
According to consulting firm CRU, the benchmark US hot-rolled coil prices have risen 37% since the beginning of November last year, reaching $783 per tonne, the highest level in two years.
Spot coking coal prices are as high as $350 per tonne, 55% higher than the quarterly contract price of $225 per tonne reached a few weeks ago.
Another important steel raw material, iron ore, is rapidly approaching historical highs, and the price of benchmark iron ore exported to China has risen by 20% since the beginning of November to reach $178.30 per ton.
“The floods in Queensland have given the steel price a shot in the arm. People are rushing to pick up the goods,†said Ralph Oppenheimer, executive chairman of steel trading company Stemcor.
More than 50% of the global seaborne coking coal market, which is heavily dependent on steel mills in Asia and Western Europe, comes from Queensland.
The Food and Agriculture Organization of the United Nations (FAO) said that as oil prices approached the $100 mark for the first time since 2008 and food prices climbed to historical highs, soaring steel prices could exacerbate concerns about rising inflation.
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