Crises continue on the iron mills integrated cycle
80% increase in raw crude prices “Hema Tate” globally since the beginning of this year
In the aftermath of the crisis of the producers of reinforcing steel “integrated cycle”, days after the issuance of the decision to cancel the decision of the Minister of Industry to impose charges on imports Albilt, the world prices for the first iron ore “iron ore” or “hematite” to record the highest level within 5 years The price of the ton was $ 130.
According to LME indices, the prices of the first iron ore continued to grow during the second week of this month to reach $ 130 per ton, up from $ 116 per ton in mid-June, to continue growth, with an increase of nearly 80% since the beginning of the year.
Samir Noman, head of the Ezz Steel Sector, said prices had grown significantly following the global supply shortage caused by the dam disaster in Brazil and the disruption of work in some sectors of the world’s largest producer of raw materials.
According to the London Index, $ 130 per tonne was the highest price of global crude in the five-year period, driven by the collapse of a dam at Brazil’s Vale last January, which cut production by about 20 million tonnes.
Vale, the world’s largest maker of steel components, warned of the risk of another dam being blocked in one of its mines after the first dam burst in January.
“The global market is floundering and the price difference in this way affects the cost in the end,” he said. “This will require a price increase in some periods, especially amid the growth in energy prices that will affect all production inputs.
“The situation is becoming increasingly difficult for companies as world raw material prices are rising and the difficulty of increasing final selling prices, which are controlled by supply and demand,” sources at iron companies said.
The sources pointed out that the increase in prices at the time of decline in demand is a wrong step and difficult to implement, especially as this will raise the disadvantages of the situation, and will push the market towards further recession, while the loss of factories will increase if the sale price constant with the increase in cost.
“International crude prices have jumped 80 percent in six months from 2019, but prices have not risen much while selling to traders and consumers, and factories are trying to balance the market to avoid losses as much as possible,” she said.