The spot reference price for 62% Fe iron ore cfr North China rose some 0.4% to $116.70 for the week ending August 3, 2012, from $116.20 last week – breaking a three week decline in prices – though still near the lowest price since the week ending December 18, 2009.

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

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With the ink still wet on last week’s second price hike, AK Steel has run with a third increase now, for a total hike of $110/ton. Weaker imports, strong automotive demand and the likelihood of a… more

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The July ISM Steel Survey continues to reflect American manufacturing’s scaled-back expectations for the US economy as well as increasing uncertainty, driven largely by worries about… more

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TMS International (TMS) reported 2Q EBITDA of $37.8m, slightly ahead of the Street’s $36.7m and the $33.5m recorded in the year-ago period.  The yoy improvement is due to… more

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A.M. Castle (CAS) reported a 2Q loss of $(0.13)/share, which adjusted to a profit of $0.11/share after non-recurring items, well short of the Street’s $0.29 and 1Q’s clean $0.29/share. The sequential drop was driven by… more

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Steel Market Production Increases – Mexican steelmaker Ternium has announced the installation of a new 700,000 tpy two-strand continuous slab caster at its Argentinian subsidiary Ternium Siderar that is scheduled to come online in 2013.

Steel Market Production Increases – Brazilian steelmaker Gerdau’s new 770,000 tpy capacity hot rolled coil mill in Brazil is scheduled to start operations in late 2012.

Steel Market Production Increases – Brazilian steelmaker Gerdau’s Gerdau Kalyani JV in India will begin operating at a rate of 350,000 tpy of crude steel output this month.

Sources: Steel Business Briefing, SteelOrbis, 

After declining for 3 straight weeks, the number of active oil and natural gas rigs in the United States rose to 1,930 for the week ending August 3, 2012, up 0.3%  from the prior week and up a scant 0.5% from the year-ago level.

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.

After 5 straight weeks of increases, the number of rigs in Canada fell this week by 10.36%  to 303 compared with 338 last week and down 30.18% from the year-ago level.

The highest rig count forCanadawas 727 on February 3, 2006; the lowest was 29, recorded on April 24, 1992.

Source: Baker Hughes Inc.

Steel Market Production Cuts – U.S. Steel plans to shut down its 2.8 million tpy capacity blast furnace at its Gary Works later this month for maintenance with production scheduled to restart in early October.

Steel Market Production Cuts – Chinese steelmaker Tianjin Tiantie Metallurgical Group has delayed the restart of a 2.5 million tpy hot metal blast furnace until September.

Steel Market Production Cuts – Chinese steelmaker Zenith Steel closed a blast furnace on July 16^th for one month of maintenance that will reduce hot metal production by 90,000 tonnes.

Steel Market Production Cuts– Chinese steelmaker Chongqing Iron & Steel (Chonggang) is reportedly planning to bank one 2,500 cubic meter blast furnace for 40-45 days starting on August 5^th.

Steel Market Production Cuts – Due to the power outages across India’s Punjabstate, steelmakers were ordered to shut down EAFs, furnaces, and rolling mills for three days a week starting July 24^{th _} effectively reducing production by about 80% in an area that produces 12,500 tonnes per day.

Steel Market Production Cuts – Riva, the main rebar producer in France, is planning to suspend production for 4 weeks at the end of this week in an effort to support prices.

Steel Market Production Increase – Sometime this month, Syrian rebar producer Hmisho Steel plans to commission a new 800,000 tpy billet meltshop.

Sources: Steel Business Briefing, SteelGuru

Steel Market Production Cuts – Chinese steelmaker Jinxi Iron & Steel plans to conduct maintenance on its 550 cubic meter blast furnace in August and September for an 80,000-90,000 tonne reduction in pig iron output.

Steel Market Production Cuts – Chinese steelmaker Echeng Steel has stopped production on a blast furnace that will reduce output by 60,000 tonnes per month.

Steel Market Production Cuts– Chinese steelmaker Tonghua Steel is performing maintenance on a blast furnace for seven days that will reduce output by 2,300 tonnes per day.

Steel Market Production Cuts – Chinese steelmaker Shougang is shutting its wire rod production line for maintenance, resulting in lost output of 15,000 tonnes.

Steel Market Production Cuts – Chinese steelmakerAnshan’s subsidiary Anling plans to conduct maintenance on its 2,600 cubic meter blast furnace for 10 days in late August for a 50,000 tonne total reduction in pig iron output.

Steel Market Production Cuts – Italian steelmaker Ilva received an order from prosecutors to partially stop production at their 11 million tpy capacity plant in Taranto, Italy due to pollution from the plant and technicians reportedly entered the plant on Monday to investigate how hot steel production can be shut down.

Steel Market Production Increase – A joint venture between Vallourec and Sumitomo do Brasil has recently opened a new OCTG line with 1 million tpy of crude steel capacity and 600,000 tpy of seamless OCTG capacity.

Steel Market Production Increase – Chinese pipemaker Panyu Chu Kong Steel Pipe has announced the successful production of its first welded pipes from its new 300,000 tpy welded pipe mill.

Steel Market Production Cuts – Commissioning of Al Tanmiya for Steel Industries new 300,000 tpy rebar and 450,000 tpy billet capacity mill and EAF meltshop in Iraq has been delayed from its hoped for July start-up due to insufficient power supply.

Steel Market Production Increase – A private equity group inEgyptplans to re-commission a 250,000 tpy wire and rod mill in November.

Sources: Steel Business Briefing, Metal Bulletin, American Metal Market, SteelOrbis

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Our Advance/Decliner Index remained stable this week, as a slight increase in our China Index was offset by our Ex-China Index posting a modest drop.  While pricing in China declined for all products with the exception of… more

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