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Estimated Chinese steel production overnight was reported to be down 3% for late-August, after a 2% drop in mid-August, leaving estimated August full-month production of… more.
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Our Advance/Decliner Index dropped for the third straight week as our China Index remained weak as iron ore prices declined another 10% prompting Chinese…more
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After seeing a pick-up in volatility the past few months – with an average monthly change of $60 – we expect a less volatile September with scrap prices likely off no more than… more
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Weekly domestic raw steel production for the week ending September 1, 2012 increased 0.1% to 1.864 million tons (mt) from 1.863 mt last week and was up 0.5% year-on-year.
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 prior months’ reported production & operating rate. What this means is that when production is changing, the weekly data is actually understating the change.
Capacity utilization stayed steady at 75.4% this week, slightly below the year-ago level of 75.9%.
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
Steel Market Production Increases – According to a statement by the USW, ArcelorMittal has restarted blast furnaces that it idled in anticipation of a labor related outage, though the company was not available to confirm this claim.
Steel Market Production Cuts – According to the China Iron & Steel Association (CISA), 46 blast furnaces inChinaare scheduled or are undergoing overhauls for a total reduction in crude steel output of 6.856 million tonnes.
Steel Market Production Cuts – Chinese steelmakerJinanplans to perform maintenance on its 1,750 cu ft. blast furnace in September resulting in a loss of 4,000 tonnes per day of pig iron.
Steel Market Production Increases – Chinese steelmaker Xinjiang Bagang Nanjiang Steel Baicheng Co. has begun test production on a new 850,ooo tpy rebar and round bar rolling mill and has two converters set to come online at the end of the year with a combined 3 million tpy of production capacity to feed rolling operations.
Steel Market Production Cuts – Chinese steelmaker Masteel will be conducting maintenance on its h-beam production line from September 14-28, during which time output will be reduced by a total of 35,000 tonnes.
Steel Market Production Increases – According to Bruno Ferrate, Italian steelmaker Ilva’s Chairman, the plant is currently operating at 70% of its 11 million tpy capacity despite reports of a court ordered stoppage and has been doing so throughout the month.
Steel Market Production Increases – Mexican steelmaker Simec plans to start its new 520,0oo tpy billet capacity and 400,000 tpy rebar and wire rod capacity facility in August of 2013.
Steel Market Production Increases – Dubai-based Moulds & Metals plans to begin production on a 200,000 tpy billet plant inPoti,Georgiaby the end of September.
Steel Market Production Cuts – Hungarian flat rolled producer Dunaferr will be deciding whether or not to close its 200,000 tpy capacity Lorinc plate rolling mill inBudapeston September 5 due to unprofitable production. The company is considering stopping hot-metal production altogether as of July 2013.
Steel Market Production Increases – Chinese steelmaker Yulong Steel pipe reportedly plans to commission a new 120,000 tpy welded pipe mill in the second quarter 0f 2013.
Sources: Steel Business Briefing, American Metal Market, SteelOrbis
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August import licenses dropped a more healthy 8.3% from July, but showed a bifurcated trend with hot-rolled coil (HRC) down some… more
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The number of active oil and natural gas rigs in the United States fell to 1,894 for the week ending August 31, 2012, down 0.2% from the prior week, 3.8% from the year-ago level and the lowest since last July.
The highest weekly rig count in theUnited Statessince 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 decreased this week by 5.4% to 316 compared with 334 last week and was down 37.8% from the year-ago level.
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.
The spot reference price for 62% Fe iron ore cfr North China fell 10.1% to $89.40 for the week ending August 31, 2012, the lowest level since the week ending October 30, 2009. Iron ore prices have now fallen for four straight weeks for a total decline of 23.4% over that time period.
For the first quarter of 2012, the iron ore price 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
The United Steelworkers and US Steel have reached a tentative contract about an hour ago covering a 3-year period including all of the company’s steelworker operations with the exception of the Canadian business, which just reached a new labor contract earlier this year.
While there is no official word on any progress from ArcelorMittal (AMUSA) we have heard that the company is bringing its blast furnaces back on – the furnaces were just taken down a few days ago. This development would indicate that the company at a minimum is confident that they and the USW can work without a contract, and may indicate that the company is close to a contract of their own.
Steel Market Production Increases – Steel Development Co. (SDCO) is reportedly considering constructing a new 1.7 million tpy flat rolled steel mill somewhere in theSouthern United States.
Steel Market Production Increases – Russian steelmaker Evraz will be conducting maintenance work on its Evraz ZSMK operations inEastern Russiafor two and a half months starting in September during which time billet and slab output will be cut by half.
Steel Market Production Cuts – Hungarian steelmaker Dunaferr plans to close its 170,000 tpy capacity Lorinci plate mill on December 1st.
Steel Market Production Increases – Indian steelmaker JSPL has started production on its new 2 million tpy capacity plate mill at its Angul plant in easternIndia; slab is currently being sourced from a neighboring steelworks until the plant’s 1.6 million tpy meltshop is commissioned at the end of the year.
Steel Market Production Increases – A second steel plant has begun operations inAfghanistanthat will increase the country’s steelmaking capacity by 5% and will produce rods and poles for construction.
Sources: Steel Business Briefing, American Metal Market, SteelGuru
