Steel prices start to creep up on LME and domestic demand for cans gets stronger


Steel billet prices on the LME have started to creep up again after two weeks of falls.


On 1 June 2011, steel billet for 3 month buyers was trading at $570 per tonne, but saw sustained falls down to $545 per tonne on Monday. Yesterday, it was back up to $555 per tonne as Chinese and US economic data was not as bad as analysts had thought.

The cash buyer spot price was up to $570 per tonne yesterday, after dropping as low as $550 per tonne on Monday. However, it was trading at just under $595 per tonne on 1 June 2011.

scrap-ex news also understands that the domestic market for steel cans is strong. Steel cans on the scrap-ex broker board are trading in the range for £175-£190 per tonne at present. These prices are proving good value for domestic trade, leading to less export of the material where prices aren’t looking as economically competitive.