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July global steel production declined 2.2% to 4.269 million tonnes per day (tpd), less than the normal seasonal drop of 3.5%, mainly due to persistent overproduction from China…
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Posts Tagged: ‘steel prices’
Domestic Raw Steel Production, Capacity Utilization Up Slightly
Weekly domestic raw steel production increased 0.9% from last week’s 1.862 million tons (mt) to 1.878 mt for the week ending August 17, 2013, and is some 0.1% above the year-ago level of 1.876 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 also increased from 77.7% last week to 78.4% this week, and is above the year-ago level of 75.9%.
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
Iron Ore Price Jumps to Five-Month High
The spot reference price for 62% Fe iron ore cfr North China rose 3.6% to $137.90 for the week ending August 16, 2013, climbing to a five-month high. The price rose as high as $142.80 on August 14 before falling slightly at the end of the week.
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 Hits Eight-Month High, Canadian Count Remains at Five-Month High
The number of active oil and natural gas rigs in the United States increased 0.7% from last week’s 1,778 to 1,791 for the week ending August 16, 2013, reaching the highest count since December 14, 2012. Despite the climb, the count is some 6.4% below the year-ago level of 1,914.
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 remained at 358 this week, which is still the highest count since March 22, 2013. The count is also some 9.8% above the year-ago level of 326.
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.
July Flat-Rolled Inventory Drops Further; Shipments Weaken After Strong June
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There was a reasonable amount of good news in the July MSCI report. First, in an unusual move, flat-rolled inventories dropped nearly 3% from June; it’s rare to see inventories…
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Advance/Decliner Index Moves Sideways on Higher China, Weaker Elsewhere
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Our Advance/Decliner Index posted a nominal improvement as a 2.3% increase in iron ore prices, bullish comments about the Chinese real estate market and a 2.1% drop in final…
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Domestic Raw Steel Production, Capacity Utilization Down
Weekly domestic raw steel production decreased 1.4% from last week’s 1.888 million tons (mt) to 1.862 mt for the week ending August 10, 2013, and is also some 2.0% below the year-ago level of 1.899 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 also fell from 78.8% last week to 77.7% this week, but is slightly above the year-ago level of 76.9%.
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
Iron Ore Price Climbs to Three-Month High Again
The spot reference price for 62% Fe iron ore cfr North China rose 2.3% to $133.10 for the week ending August 7, 2013, bouncing back to a three-month high.
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 Falls Slightly From Almost Eight-Month High, Canadian Rig Count Continues Climb
The number of active oil and natural gas rigs in the United States decreased 0.2% from last week’s almost eight-month high of 1,782 to 1,778 for the week ending August 9, 2013, halting a five-week upward trend. The count is also some 7.9% below the year-ago level of 1,931.
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 continues to climb, increasing 5.0% from 341 to 358 this week, and still remaining at the highest count since March 22, 2013. The count is also some 19.7% above the year-ago level of 299.
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.
Advance/Decliner Index Remains High with Weaker China
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Our Advance/Decliner Index declined slightly this week as news of a 2.3% rebound in Chinese steel production in mid-July and a 1.9% drop in iron ore prices put downward…
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