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Our Advance/Decliner Index rose slightly from last week’s level. The increase was driven by strength in European pricing as production cuts – most notably… more.
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For the week ending December 1, 2012, weekly domestic raw steel production fell 0.9% to 1.802 million tons (mt), compared to the 10-week high of 1.818 mt recorded the previous week, but is still up some 7.3% from the recent low of 1.679 mt for the week of October 27, 2012.
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 came in at 72.9%, down from 73.6% last week and down from 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
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Rebounding to the 2nd highest in over two years, November Chinese steel exports jumped 6.3% to million tonnes (mt) from 3.79 mt in October. We believe… more.
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Steel Market Production Increases – Chinese steelmaker Zhongtian Iron & Steel Group is nearing the completion of a 5 mtpy longs plant that would expand the company’s total finished capacity to 11 mtpy. Five wire rod lines with a combined capacity of 3.5 mtpy have already been commissioned, and two bar mills with a combined capacity of 1.5 mtpy scheduled to begin production in January 2013.
Sources: Steel Business Briefing
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AK Steel announced a $30/ton sheet price increase today on the heels of Nucor’s leading $20/ton hike yesterday. The higher price is most probably reflective of a surge in orders …more
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The number of active oil and natural gas rigs in the United States fell again this week – declining by 11 to a 19-month low of 1,800 for the week ending December 7, 2012 – down 0.6% from last week and 9.4% from a year ago.
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 rose for the fourth consecutive week – up 1.8% to 406 from 399 last week, but 19.4% below 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.
HRC lead times rose again for the week ending December 2 to a three-month high of 3.9 from last week’s 3.5 and 3.1 two weeks ago.
HDG lead times also rose – coming in at a 14-week high of 6.6 weeks from 6.3 in the week prior. CRC lead times posted the lone decrease, falling to 6.0 from last week’s 11-week high of 6.4.
Sources: The Steel Index, Steel Business Briefing
HRC = Hot Rolled Coil CRC = Cold Rolled Coil HDG = Hot Dipped GalvanizedSteel Market Production Increases – ArcelorMittal is reportedly planning to re-start the blast furnace at the Gijon facility in early 2013, after reaching a new three-year agreement with the local unions.
Steel Market Production Increases – Russian steelmaker NLMK will resume production at the La Louviere rolling mill in Belgium and will keep it operating for 7 days while attempting to negotiate with the unions on a restructuring agreement.
Steel Market Production Cuts – Italian steelmaker Acciaierie di Calvisano has halted operations at the company’s 400,000 tpy billet plant for a scheduled upgrade, which should be completed by January 10, 2013.
Steel Market Production Increases – E&H Tubing Inc. is planning to use the former assets of Indiana Steel & Tube to manufacture steel tubing and is beginning to ramp-up the established facility with one shift of workers already hired.
Sources: Steel Business Briefing, American Metal Market
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According to just-published data from American Metal Market (AMM), November prices for #1 busheling (prime) settled flat at $390/ton, while shredded fell a nominal $1/ton …more
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