Steel prices could rise in tandem with coal price

摘要

The cost of raw materials is fast becoming too expensive for steelmakers to continue producing at current levels, a development that could lead to significantly higher pricing for certain steel products. That's the view of a U.S. Coal Review source that sees outrageous and still growing coking coal prices and 450 dollars/tonne FOB coke prices making life increasingly difficult for steelmakers. "At 200 dollars, coal is pushing the limit on a coke equivalent basis," the source said. "I am still in the camp that says they will go ahead and raise the hot-rolled band cost, and then buyers will say they can't buy any more. The next increment of iron production will not be worth making. There is something to be said about that. That could happen, and then demand will slip and the steel business will not be good any more."