Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Steelmaker Shares Fall On Worry Over Prices

Published 08/29/2016, 05:12 AM
Updated 07/09/2023, 06:31 AM

Earlier this week, Russian steelmaker Evraz (LON:EVRE) dropped with fellow metals producers as the FTSE 100 hit a two-week low.

According to a report from the Financial Times, Evraz stock dipped 4.5% Monday over fears that it could be negatively affected by steel prices trending lower. Since last week, Evraz shares have dropped 17%.

Analyst Andrey Lobazov told clients Russia’s Federal Antimonopoly Service announced last month it was investigating steel makers throughout the country over their domestic pricing of rebar, which has skyrocketed 80% over the past year. The thought is the investigation will lead to lower rebar prices.

“Miners led the wider market lower as the threat of higher US interest rates put metals prices under pressure,” wrote Bryce Elder for the news source.

US Steel Prices Dip

According to a report this week from MetalMiner, U.S. flat-rolled steel prices have fallen $20-40/ton in August thus far. The reason? James May writes:

“While we don’t expect freefall just yet, we do expect HRC prices to be back in the high $300s/ton at some point next year.”

It’s becoming clear that anti-dumping duties may not be having their desired effect. May added: “While demand is flat, supply is on the increase. The high prices mean strong profitability and therefore domestic mills will maximize output. Meanwhile, the arbitrage is strong enough to justify shipping to the U.S. and there are enough holes in the anti-dumping duties to allow material in.”

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.