Strong steel prices: Cost differentials between steel and commodities in the U.S. and Europe are widening. That’s according to spglobal.com’s Commodity Tracker. Other topics this week: oil gains ground, U.S. companies buy renewables, and the grain market looks to China’s rising wheat auctions.
Key commodity headline:
Strong steel prices in the U.S. and Europe support spreads to commodity costs
What’s happening right now. Spreads between hot-rolled coil steel and commodity prices in Europe rose to a new high in January, while spreads between HRC and ferrous scrap in the U.S. also surged on higher spot steel prices. Higher HRC prices offset an increase in the cost of high-grade iron ore and pellets, as well as strong scrap prices last month. In China, weaker steel prices and rising coking coal and iron ore costs, after the country reached record steel production volumes in 2020, pushed down steel industry spreads and margins.
Source: spglobal.com
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