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Chinese steel production estimated by the China Iron & Steel Association (CISA) rose 2.3% to 2.13 million tonnes per day (mtpd) in mid-July, after posting a surprising 4.5% drop…
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Archive for: ‘July 2013’
Domestic Raw Steel Production, Capacity Utilization Fall
Weekly domestic raw steel production fell 1.7% from last week’s 13-month high of 1.904 million tons (mt) to 1.871 mt for the week ending July 27, 2013, but remains some 1.4% above the year-ago level of 1.846 mt.
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 from a 14-month high of 79.5% last week to 78.1% this week, but is above the year-ago level of 74.7%.
The lowest production since the recession began was 800,000 tons for the week of December 27, 2008, while the highest 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
Advance/Decliner Index Highest Since January; Chinese Pricing Strength Continues – For Now
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Our Advance/Decliner Index rose to the highest level since early January. The increase was driven by our Ex-China Index rising as more price increases were announced in…
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Iron Ore Price Reaches Three-Month High
The spot reference price for 62% Fe iron ore cfr North China rose 0.7% to $132.60 for the week ending July 26, 2013, the highest price since April 30, 2013.
The spot price for iron ore averaged $112.12 in 3Q12, $120.57 in 4Q12, $148.16 in 1Q13, and $125.76 in 2Q13; the full-year 2012 average was $128.30.
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
U.S. Rig Count Continues Climb, Canadian Rig Count Remains at Four-Month High
The number of active oil and natural gas rigs in the United States increased for the fourth consecutive week, up 0.3% from last week’s 1,770 to 1,776 for the week ending July 26, 2013, but is still some 7.7% below the year-ago level of 1,924.
The highest weekly rig count in the United States since 1940 was recorded on December 28, 1981, at 4,530; the lowest was recorded on April 23, 1999, at 488.
The number of rigs in Canada climbed for the eleventh consecutive week, increasing 1.5% from 324 to 329 this week and remaining at the highest level since March 22, 2013. The count is some 2.7% below the year-ago level of 338.
The highest rig count for Canada was 727 on February 3, 2006; the lowest was 29, recorded on April 24, 1992.
Source: Baker Hughes Inc.
June ABI Down but Above 50 – Commercial/Industrial Index Highest Since December 2007
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The American Institute of Architects’ (AIA) ABI Index – a leading indicator of non-residential construction activity – fell to 51.6 in June after rebounding to 52.9 in May from April’s…
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Advance/Decliner Index Remains High as China Index Highest Since February; AK Steel Flags Another Sheet Hike
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Our Advance/Decliner Index fell slightly from the six-month high recorded the week prior. The slight drop was due to our Ex-China Index falling from a six-month high as our China…
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IIIN – Construction Market to See Modest Improvement, Recovery “Unimpressive” – Thoughts from the JunQ Conference Call
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Insteel Industries (IIIN) reported JunQ earnings of $0.18/share, which adjusted to $0.19/share, substantially below the Street’s $0.27/share and slightly lower than…
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Global Steel Production Stable in June; Chinese Output Nominally Down
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June global steel production came in unchanged from May at 4.39 million tonnes per day (mtpd), bucking the normal 1.4% seasonal increase, as a 0.3% decline in China was…
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Domestic Raw Steel Production Hits 13-Month High, Capacity Utilization Hits 14-Month High
Weekly domestic raw steel production rose 1.2% from 1.881 million tons (mt) last week to 1.904 mt for the week ending July 20, 2013, a 13-month high and some 3.7% above the year-ago level of 1.837 mt.
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 rose from 78.5% last week to a 14-month high of 79.5%, which is above the year-ago level of 74.3%.
The lowest production since the recession began was 800,000 tons for the week of December 27, 2008, while the highest 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
