Category: ‘Steel Market’

Domestic Raw Steel Production Falls Again – Remains at 20-Month Low

October 8, 2012 Posted by Steel Market Intelligence

For the week ending October 6, 2012, weekly domestic raw steel production declined 1.3% to 1.757 million tons (mt), the second consecutive week at the lowest level since January 2011.

We would caution readers that only half of the AISI reporting companies release their weekly production in “real time” so the other half of this data is estimated using the last month’s reported production & operating rate. What this means is that when production is changing, the weekly data is actually understating the change.

Capacity utilization fell again to 71.1% this week, below last week’s 72.0% and like production, is at the lowest level since January 2011.

The lowest production level since the recession began was 800,000 tons for the week of December 27, 2008, while the highest level was 2.005 mt for the week of May 12, 2012. The lowest capacity utilization rate since the recession began was 33.5% for the week of December 27, 2008; the highest was 81.1% on May 12, 2012.

Source: AISI and Steel Market Intelligence

Iron Ore Prices Remain Flat

October 8, 2012 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China was unchanged for the week ending October 5, 2012, coming in at $104.20/tonne each day of the week, and remained some 17.1% higher than the recent low of $89.00 on 9/7/2012.

For the first quarter of 2012, the spot price for iron ore averaged $141.84, and for 2Q, $139.35; this compares to an average of $176.90 for 1H 2011 and $167.59 for full-year 2011.

The post-recession low was $59.10 on March 27, 2009, while the high was $190.19 on February 17, 2011.

Source: The Steel Index

September ISM Steel Survey – Steel’s Markets and Economy Deteriorating at a Faster Pace

October 6, 2012 Posted by Steel Market Intelligence

New Report Preview:

No More Good News? The September Institute for Supply Management (ISM) Steel Survey may actually be the worst report we have seen, as even the green shoots we …more

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Steel Market Production Changes – A Big Gain in the Ukraine

October 5, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Ukrainian pipe-maker Interpipe stated that the new 1.32 mtpy Dneprostal EAF plant has been started up and is going to be the largest EAF in Eastern Europe.

Steel Market Production Increases – Ukrainian steelmaker Industrial Union of Donbass aims to increase output at the Alchevsk subsidiary by 13% in October for rolled steel and 11% for crude, to 310,000 tpy and 345,000 tpy respectively.

Steel Market Production Cuts – Wisconsin-based Charter Steel announced a maintenance outage at the 650,000 tpy Cleveland plant from Nov. 16 through Dec. 3 to upgrade the EAF.

Steel Market Production Increases – Russian pig iron manufacturer Kosaya Gora Iron Works announced plans to restart the 360,000 tpy No. 3 blast furnace sometime in 1H13.

Steel Market Production Increases – The equipment manufacturing arm of China National Petroleum Corp (CNPC) began operations at a new 100,000 tpy OCTG line pipe mill in September.

Steel Market Production Increases – Italian steelmaker ABS, a subsidiary of Danieli, announced that the Sisak, Croatia mill’s EAF will be restarted in November. The mill was purchased from Commercial Metals Company in June.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market

Scrap Outlook – October Scrap Prices Likely to Drop More than Expected

October 5, 2012 Posted by Steel Market Intelligence

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With domestic steel production dropping to a 20-month low in the past week (and keeping in mind that the “weekly” production data is about half the prior month so trend …more

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Steel Market Production Changes – ArcelorMittal Cuts Big

October 4, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – ArcelorMittal announced a permanent shutdown of the 2.5 mtpy Florange, France slab plant that was idled in 2011. The company has made a commitment to the French government to try and sell the plant in the next 60 days, while the finishing lines will continue to operate by sourcing slab from the company’s Dunkirk mill.

Steel Market Production Cuts – ArcelorMittal’s Kazakhstani subsidiary Temirtau aims to cut rolled steel production by 17% in October to 210,000 tonnes, furthering the 10% year-to-date production decline experienced so far this year.

Steel Market Production Cuts – ArcelorMittal will begin to idle the wire rod mill at the Schifflange facility by the end of the year, completing the indefinite shutdown that began in 4Q 2011. The wire rod mill has been operating at only 10% of capacity since then, and orders are expected to be shifted to the newer Duisburg,Germanyplant.

Steel Market Production Increases – Yigang, a subsidiary of Chinese steelmaker Shougang, has finished the testing phase of a new 800,000 tpy bar mill that is part of an upgrade plan to increase both crude and finished steel production at the facility to 2 mtpy.

Steel Market Production Increases – Chinese steelmaker WSP Holdings announced that production at a new 200,000 tpy OCTG plant in Thailand started up in 1H, and an American Petroleum Institute audit was completed in July.

Steel Market Production Increases – Russian steel producer MMK Group plans to boost output at the MMK-METIZ hardware plant by 10% from 496,000 tpy in 2012 to nearly 546,000 tpy in 2013.

Steel Market Production Increases – Taiwanese steelmaker Chung Hung Steel is targeting June 2013 for the start of the testing phase for a new 200,000 tpy structural/OCTG pipe mill in western Taiwan.

Steel Market Production Increases – Turkish steelmaker Tosyali is set to begin operations of a new Algerian facility in February 2013. The plant will be comprised of a 1 mtpy EAF and an 800,000 tpy rebar rolling mill, although the intial run-rate is expected to be 300,000 tpy until hitting a 500,000 tpy rate by June.

Steel Market Production Cuts – Brazilian steelmaker VSB has pushed back the original completion date of 1H 2013 for the new integrated steel facility by as much as two years after the second blast furnace was delayed.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market

Advance/Decliner Index Drops Back Below 50

October 4, 2012 Posted by Steel Market Intelligence

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Our Advance/Decliner Index fell on broad-based weakening last week, as the frothy ebullience from both Chinese and domestic stimulus announcements lifted and …more

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September Steel Import Licenses Show Small Decline; Final Data Will Likely Rise

October 2, 2012 Posted by Steel Market Intelligence

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September import licenses dropped a healthy 3.4% from August, with sheet imports bucking the trend, up 16% to 611,000 tonnes with hot-rolled (including coiled plate) rising …more

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Steel Market Production Changes – September 26 and 27, 2012

September 27, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – Italian steelmaker ILVA has been given a direct order to shutter the hot end at the 11 million tpy Taranto plant after the  judge denied a plan that would allow production to continue at 70% of capacity during the renovation process.

Steel Market Production Cuts – Baosteel, China’s largest steel company, halted operations at the 3 million tpy plate mill in Luojing, Shanghai to prevent further operating losses.

Steel Market Production Increases – Production will begin shortly at Mexican steel company Deacero’s new 500,000 tpy Ramos Arizpe longs mill, with the potential for capacity to eventually increase to 1.5 million tpy, adding to existing output of 3 million tpy.

Steel Market Production Cuts – Japanese rebar producer Kyoei Steel will cut production further in September and October, increasing the total cut from 30-40% to 50%.

Steel Market Production Increases – Chinese steelmaker Weiyuan Iron & Steel Company has ordered a new 650,000 tpy wire rod mill expected to come on line in 2Q 2013.

Steel Market Production Increases – Turkish steel company Izmir Demir Celik (IDC) is planning to begin test-runs of a new 400,000 tpy medium sections mill sometime in December. The new mill will increase IDC’s total finished steel capacity to 1.3 million tpy.

Steel Market Production Increases – Russian pipe maker Vyksa will begin installing three new welded pipe mills before the end of 2012, with a start-up goal of mid-2013. The new mills will replace the current four mills at the No.2 pipe shop and will increase capacity by nearly 50% to 300,000 tpy.

Sources: Steel Business Briefing, SteelOrbis

Chinese Steel Production Flash – Mid-September Production Declines Again to Seven-Month Low

September 26, 2012 Posted by Steel Market Intelligence

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Estimated Chinese steel production declined 2.0% in mid-September to 1.857 million tonnes per day (mtpd) after a surprising 1.2% increase in early September which we …more

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