U.S. Rig Count Showing Signs of Life

November 21, 2012 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States rose for the third straight week, increasing by 8 to 1,817 for the week ending November 21, 2012 – up 0.4% from the previous week but still down some 9.2% 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 0.8% to 387 from 384 last week, but was 20.0% 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.

 

October ABI Hits New Highs; Residential Highest Since April 2005

November 21, 2012 Posted by Steel Market Intelligence

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The American Institute of Architects’ (AIA) ABI Index – a leading indicator of non-residential construction activity – rose for the fifth consecutive month in October, and for the …more

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October Global Steel Production Declines

November 20, 2012 Posted by Steel Market Intelligence

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As global steel demand continued to slide in October, average daily steel production declined 1.5% from September – a bigger drop than the normal sideways seasonal …more

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Advance/Decliner Index Rises Further on Broad-Based Strength

November 20, 2012 Posted by Steel Market Intelligence

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Our Advance/Decliner Index rose to an eight-month high as global steel prices trended higher on the back of rising scrap prices and continued strength in China. Our …more

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Steel Market Production Report – MMK Confirms Outage

November 19, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – Russian Steel Company MMK confirmed the 90-day idling of the EAF and hot-strip line at the 2.3 mtpy MMK-Metalurji plant in Turkey. The cold-rolled, galvanized, and coated lines will continue to operate throughout the stoppage.

Sources: Steel Business Briefing

Domestic Raw Steel Production Rises for the Third Straight Week

November 19, 2012 Posted by Steel Market Intelligence

For the week ending November 17, 2012, weekly domestic raw steel production increased for the third consecutive week, rising 2.6% to a two-month high of 1.792 million tons (mt) compared to 1.745 mt the previous week.. Despite the current string of increases, production levels are still down some 10.6% from the recent peak on May 12.

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 to 72.5% from 70.7% last week, the first time above 72% since September 22.

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 Continues to Climb

November 19, 2012 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China rose for the sixth consecutive week, gaining 0.6% to $122.80 for the week ending November 16, 2012, and is now 38.0% higher than the recent low of $89.00 on 9/7/2012.

The spot price for iron ore averaged $141.84 in 1Q, $139.35 in 2Q, and $112.12 in 3Q; this compares to an average of $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

U.S. Rig Count Moves Up for Second Week

November 16, 2012 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States rose by 3 to 1,809 for the week ending November 16, 2012, up 0.2% from the previous week but down some 9.6% 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 3.8% to 384 from 370 last week, but was 21.1% 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.

Steel Market Production Report – Ilva Still Facing a Possible Shut-down

November 16, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – Italian steelmaker Ilva may be forced to halt production at its 11 mtpy Taranto facility by December 14, due to the environmental sanctions handed down by the Italian government. The company estimates that it needs about 50,000 tpd of raw materials to operate, and the sanctions limit the facility to only 15,000 tpd.

Steel Market Production Increases – Commercial Metals Company will increase production at its rebar mill in Arizona after receiving new permits. No construction will take place, but the mill will begin to produce more than the nameplate capacity of 300,000 tpy.

Steel Market Production Cuts – Ukrainian steelmaker Donetskstal has pushed back the commissioning of a new 1.5 mtpy EAF from October 2012 to the second quarter of 2013 and will idle the 1 mtpy slab rolling mill as it is not profitable to operate with purchased steel.

Steel Market Production Increases – Italian longs producer Ferriera Valsabbia increased the capacity of the EAF at the Odolo facility from 0.8 mpty to 1.0 mtpy during a roughly two month outage that ended “a few weeks ago”.

Sources: Steel Business Briefing, American Metal Market

Steel Market Production Report – China Increases OCTG Capacity

November 15, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Chinese steelmaker Jiangsu Tianhuai Steel Pipe has begun production at its new 500,000 mtpy premium quality finishing seamless OCTG facility.

Steel Market Production Increases – American steelmaker Corpac Group has begun construction on a 150,000 tpy OCTG plant near Barranquilla, Columbia and expects to begin production by the end of 2013.

Steel Market Production Cuts – Argentinian steelmaker Ternium Siderar will be forced to decrease planned production in Q4 due to issues while re-starting the No.2 blast furnace. The BF had been idled for maintenance since October 15 and will now be out of commission for an additional 3 to 4 months.

Steel Market Production Increases – South African steel mill CISCO will be restarted after being acquired by Turkish firm DHT Holdings. The facility will begin production in early 2013 at around 220,000 to 260,000 tpy, and will be ramped-up to about 400,000 tpy later in the year.

Steel Market Production Increases – Russian Steel Company MMK has idled the Electric Arc Furnace at the 2.3 mtpy MMK-Metaluji plant in Turkey until at least December 1.

Steel Market Production Increases –Turkish steel company Yolbulan Bastug has restarted its EAF after a four day outage due to repairs being made to the local electricity grid. The facility lost about 18,000 mt of billet production over the four day outage.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market