Steel
Overview
The price indices in our Argus Ferrous Markets and Argus Global Steel services are widely used by companies in physical supply contracts around the world – for iron ore, coking coal, hot-rolled coil (HRC) and ferrous scrap.
Many of them are used as the settlement prices for cash-settled futures contracts launched by exchanges to allow users of the derivatives who also transact in the physical market to minimize basis risk while hedging. These cash-settled monthly futures contracts are settled against the arithmetic mean of all the published Argus prices during each calendar month.
Using indices allows companies to trade material on an index-linked basis, not only via fixed-prices sales. This offers significant advantages when prices are volatile, yet the modern finished steel market remains primarily transacted on a fixed price basis. The addition of futures markets offers opportunities to enhance supply chain resilience further.
Latest steel news
Pakistan container scrap trade pressured by surcharges
Pakistan container scrap trade pressured by surcharges
London, 15 May (Argus) — Ferrous scrap suppliers are facing higher costs from new surcharges announced by major container shipping firms on trading routes to Pakistan, following recent geopolitical tensions in the region. Shipping lines have announced imminent emergency operational cost recovery surcharges on containers for trading routes to and from Pakistan following the recent escalation in tensions between the country and India. This resulted in days of fighting, with India launching attacks on Pakistan and Pakistan-administered Kashmir in retaliation for an April terrorist attack in Kashmir. India-Pakistan relations have stabilised after the countries agreed a tentative ceasefire on 10 May , but concerns remain over security in the region. Major global container shipping line Maersk has imposed charges of $300/container to Pakistan from every country, excluding those in Asia-Pacific, starting from 21 May or 13 June, depending on the country. Surcharges of $300-500/container have been implemented on trade from Pakistan. Other lines, including MSC, Hapag-Lloyd and CMA CGM, have announced surcharges on imports and exports ranging from $300-800/container, depending on line, route and trade direction, which will start coming into effect from mid-May for most regions, with those for other regions such as North America coming into effect in the first half of June. The Pakistan and Indian governments at the start of May imposed shipping orders banning merchant vessels bearing the other country's flag from stopping at their ports. And shipping lines changed trading routes across the region following the outbreak of hostilities and prior to the ceasefire announcement. But Maersk said this week it is "witnessing a gradual return to normalcy" at port operations in India and Pakistan, and will continue to monitor the situation closely. Indian imports/exports can remain on board through Pakistan ports, while in India, Pakistan imports are allowed to transit through Indian ports but not exports, the firm said earlier this week. Any increase to freight costs is likely to further limit exporters' interest in selling to the region, which has already slowed significantly, market sources said. As a result, some container exporters and freight forwarders do not expect the surcharges to remain in place. Containerised scrap suppliers said prices to Pakistan would need to rise by around $10/t to absorb the additional surcharges, but many noted difficulties, with buyers in the country not lifting their bids and their own purchasing prices upstream remaining firm. The last containerised shredded scrap sales to the south of Pakistan were reported in the $370-375/t range, which buyers are heard to be continuing to target. But domestic prices for shredded scrap in key supply regions remain firm, with inland yards not willing to accept lower prices sought by suppliers. Exporters would need one of the two price points to move to make trade with Pakistan workable. By Corey Aunger and Brad MacAulay Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU stainless prices to continue to fall: Assofermet
EU stainless prices to continue to fall: Assofermet
London, 15 May (Argus) — An fall in European producers' cold-rolled stainless steel prices and input costs in the third quarter will make output more competitive against imports from Asia, including China and Indonesia, according to Alessandro Bettuzzi, sales director at Italian distributor Oiki Acciai Spa and co-ordinator of Italian steel and scrap association Assofermet's stainless steel division. On the sidelines of last week's Made in Steel event in Milan, Bettuzzi said high service centre stocks and weak demand in key sectors like automotive and household appliances are likely to mean a weak third quarter in Europe, particularly in Italy, with its many distribution centres. "I'm not positive for the next month," Bettuzzi told Argus . "This is because fundamentals are so weak, and prices of scrap nickel are falling, which will produce lower prices than today's level." A further fall in energy costs will also bring down prices, keeping imports at bay, he added. Following January-February's mostly stable prices in Europe, Bettuzzi said the cold-rolled flat product market fell by €100/t from mid-March. The downtrend will probably continue until July, he said, given the pattern of weakening demand over the past eight months. The Argus assessment for stainless steel 304 cold-rolled 2mm sheet delivered northwest Europe had risen to €2,655/t at the end of February from €2,500/t at the end of December, but had fallen to €2,525/t by the beginning of May. Traders surveyed by Argus see further declines, as mills focus on capacity utilisation and filling order books. "The auto and appliances industries at this moment are going through a major lull," Bettuzzi said. "These sectors are very important to absorb stainless steel." Bettuzzi reiterated Asoffermet's view that a recovery can only happen if the EU starts thinking about safeguarding downstream end-products, instead of focusing on protecting upstream steelmakers. "If final consumption disappears, everything upstream will disappear," he said. "Asoffermet is really pushing for this. The EU is focusing too much on the producer." Energy prices remain a problem for European producers, and Bettuzzi said investment in renewables is the long-term solution. "For Italy, it is all out how we negotiate as we are obliged to buy energy from other countries, which can cause fluctuations." Bettuzzi cautioned against allowing Asian semi-finished products, such as slab, to enter Europe exempt from duty, and suggested applying the carbon border adjustment mechanism (CBAM) or a similar duty. "If we apply duties only on coils and sheets, but do not impose duties on semi-finished products, they will come in at 25pc less from Asia compared to Europe," he said. Bettuzzi highlighted flanges, heavily imported by Italy, which have been arriving duty-free. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Rio Tinto sells first PBF cargo with new specification
Rio Tinto sells first PBF cargo with new specification
Sydney, 14 May (Argus) — UK-Australian metal producer Rio Tinto on 13 May sold its first cargo of Pilbara Blend Fines (PBF) iron ore with a revised iron content specification of 60.8pc. Years of grade challenges have led to declining volumes of the blended product, which previously contained 61.6pc Fe. Rio Tinto continues to review product strategy, based on consumer needs and available ore grades, the company told Argus on 13 May. It has notified consumers of Pilbara Blend specification changes and is engaging with them, a spokesperson added. Over the past year, market participants have reported rising volumes of the company's SP10 blend — which has a lower iron ore content, but higher alumina and phosphorus levels, than PBF — being sold into China's portside market to maintain the grade of its PBF product. The reduction in grade in PBF is expected to result in greater volumes of its flagship product being available. Rio Tinto said the average realised fob price from its Australian assets was $97.40/dmt last year — slightly below Argus ' average 2024 iron ore fines 62pc Fe (ICX) fob Australia netback of $98.46/dmt. Rio Tinto's realised fob price includes fines and lump products from across Western Australia. These include lower-grade products and the more-valuable lump, which accounts for about 30pc of total sales over most quarters. Rio Tinto is not the only company facing grade challenges. Typical grades for Australia's BHP have also been steadily declining over recent years, and ores typically deliver below 62pc Fe. Mineral Resources' average ore grade at its 10mn t/yr Pilbara Hub complex was 57.3pc in July 2024-March 2025, down from 58.2pc a year earlier. Argus ' iron ore fines 62pc Fe (ICX) cfr Qingdao price was assessed at $102.40/dmt today, down from $98.95/dmt on 14 April. Rio Tinto's revised PBF product with July delivery traded at $96.41/dmt. Argus plans to launch an assessment for 61pc Fe iron ore fines next month to reflect the ongoing decline in average grades in Australia's Pilbara region. The new price will be calculated from the same underlying spot data as the existing ICX 62pc Fe benchmark. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mauritania weaves GTA project into industrial strategy
Mauritania weaves GTA project into industrial strategy
Paris, 14 May (Argus) — Offshore gas production could help to meet Mauritania's power demand by 2030 while also supporting mining activity, particularly of iron ore, energy minister Mohammed Ould Khaled told the Invest in African Energy forum today. BP last month loaded the first LNG shipment from its 2.7mn t/yr Greater Tortue Ahmeyim (GTA) joint venture in Mauritanian and Senegalese waters. GTA is export-oriented, but Mauritania could still tap the project for power, Khaled said, although he added that infrastructure would need to be built to facilitate this. A tender to build a power plant fired by GTA gas will be launched in the next couple of weeks, he said. Mauritania wants to become a regional power hub within 20 years, Khaled said, and hopes to see construction of a power link "to the north" — in the direction of Western Sahara/Morocco. The Mauritanian power grid is already connected to Senegal and Mali, he said. Future power generation projects will be funded by the private sector and incentivised through tax breaks, Khaled said, with 550MW set to become available to the domestic market through private-sector projects over the next couple of years. Mauritania is also looking for partners to develop the 50 trillion-60 trillion ft³ Bir Allah gas field for export and domestic markets. The area lies 50km north of GTA and exclusively in Mauritanian waters, according to Khaled, with two wells already having been sunk. Bir Allah is "three times bigger than GTA", he said. BP and Kosmos Energy signed an exploration and production-sharing agreement for the site in late 2022 , with BP saying gas from the field will be used to expand GTA to 10mn t/yr. It is unclear whether BP or Kosmos Energy are still partners in the Bir Allah development project. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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