HRC lead times for the week ending November 4 jumped to 3.7 from last week’s level of 3.2 – the largest week-on-week increase in 11 weeks and the highest reading in 9 weeks.
HDG lead times came in at a 5-week high of 6.1 weeks from 5.4 in the previous week – the largest increase in 11 weeks. CRC lead times rose to a 9 week of 6.3 – up from 6.0 in the previous week.
Sources: The Steel Index, Steel Business Briefing
HRC = Hot Rolled Coil CRC = Cold Rolled Coil HDG = Hot Dipped GalvanizedNew Report Preview:
The MSCI October report showing a meaningful decline in average daily shipments of 5.9% sequentially and 5.4% y-o-y most probably overstated the weakness in the month …more
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Our Advance/Decliner Index rose and our Ex-China Index reached a three-month high, as rising iron ore and scrap prices drove steel prices in the US and MENA higher …more
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Steel Market Production Increases – Mexican steelmaker SIMEC is planning to commission a new 520,000 billet mini-mill in July 2013 in Brazil, with a 400,000 tpy bar and wire rod mill on site that could eventually be expanded to 560,000 tpy.
Steel Market Production Cuts – Indian steel company JSW has idled an 800,000 tpy Corex ironmaking furnace at the Vijayanagar facility for a scheduled 90-day maintenance outage that began on October 15.
Steel Market Production Cuts – Spanish steelmaker Celsa is planning to reduce crude steel production at the company’s Barcelona facility from an average of 2.0 mtpy to 1.33 mtpy in 2013.
Steel Market Production Increases – Italian steel company AFV Beltrame Group has commissioned a 350,000 tpy heavy plate mill at the company’s Laminados Industriales subsidiary in Argentina. The mill will eventually reach design capacity of 500,000 tpy and two new sections rolling mills will be “developed between 2013 and 2015.”
Steel Market Production Increases – ArcelorMittal announced that production is returning to “normal” at the Dabrowa Gornicza facility’s No. 3 blast furnace in Poland after an accident at the already repaired No. 2 BF in late October.
Sources: Steel Business Briefing, SteelOrbis, MetalBulletin
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Final October Chinese steel production came out overnight at 1.91 million tonnes per day (mtpd), a 1.3% decline from September’s 1.93 mtpd and down some 5.6% from …more
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After jumping more than 30% in September, October Chinese net steel exports declined 3.6% to 3.79 million tonnes (mt) as gross steel exports fell 6.0% and imports …more
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For the week ending November 3, 2012, weekly domestic raw steel production increased 2.3% to 1.746 million tons (mt), the largest weekly percentage gain since December of last year, but still some 12.9% below 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 70.7% from 69.1% last week, the first time above 70% since October 13.
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
Steel Market Production Cuts – Chinese steelmaker Wugang has suspended the planned 5 mtpy Brazilian JV with Brazilian steel company EBX, due to tough market conditions and high costs.
Steel Market Production Cuts – Chinese steelmaker Magang is relocating the 2 mtpy Hefei Steel longs subsidiary to a new location outside of Hefei city. Nothing from the current facility will be moved as the new facility will produce cold-rolled sheet, with a targeted capacity of 1.2 mtpy. The new CR mill is expected to be completed by year-end 2013 “at the earliest.”
Steel Market Production Increases – Russian steel company NLMK is nearing completion of the construction phase at the new 1.5 mtpy Kaluga longs mini-mill and is expected to begin production in early 2013.
Sources: Steel Business Briefing, NLMK website
The spot reference price for 62% Fe iron ore cfr North China rose 1.7% to $122.10 for the week ending November 9, 2012, after increasing 0.4% the week before, and is now 37.2% 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
Steel Market Production Increases – French pipemaker Vallourec is planning to increase production to 50% of capacity at the new 500,000 tpy OCTG mill in Ohio and 40% of capacity at its 300,000 tpy Vallourec Sumitomo do Brasil facility in Brazil.
Steel Market Production Increases – Korean steelmaker Posco commenced production at a new 450,000 tpy hot-dip galvanized coil line at its Shunde facility in southern China on November 3.
Sources: Steel Business Briefing, American Metal Market
