Steel Market Production Increases – Ternium is moving forward with the installation of a two-strand continuous slab caster at its Argentinean subsidiary, Ternium Siderar. The installation will increase crude steel capacity by 500,000 tpy and is expected to be operational in 3Q 2013.

Steel Market Production Cuts – Turkish steelmaker Habas is planning to conduct maintenance at its Izmir region steel mill at the end of March and beginning of April with an expected duration of three weeks.

Steel Market Production Cuts – Steelworkers at ArcelorMittal’s Tubular Products Galati in Romania have gone on strike over wages and bonuses. The facility has a capacity of 50,000 tpy of longitudinal submerged arc-welded pipe.

Sources: Steel Business Briefing, American Metal Markets

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Companhia Siderurgica Nacional (CSN) reported adjusted EBITDA of R$1.463B, in line with the Street’s $1.491B, but 14% below 3Q’s R$1.703B as lower iron ore prices and weaker international steel pricing in 4Q weighed on results.

Guidance was for steel production of 5.7M tonnes in 2012; 4.9M tonnes in Brazil, and 800,000 tonnes in Germany. Approximately 85% of this will go to domestic markets, with another 3-4% going into tinplate in Latin America.

Our full report is available to subscribers only and provides further thoughts on CSN’s 4Q earnings report and conference call as well as the implication for the stock and other equities.

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February preliminary steel imports rose a surprising 5.6% to 2.69 million tons (mt) from 2.55 mt in January, mainly due to an unexpected surge of imported semi-finished steel from Brazil, which we estimate increased nearly 80%.  Finished steel imports actually dropped 0.4% in the month, while semi-finished as a total rose 31.1%.  We generally compare preliminary monthly data to prior month preliminary data – however, in January there was an unusually meaningful +10.5% revision that will likely leave final February imports down sequentially.

Brazilian semis are running up nearly 45% over the past eight months compared to 1H 2011 and we believe most of the tonnage is headed to Thyssen’s Alabama rolling mill. The average run-rate for the last three months is some 295,000 tons per month, or around 75% of the mill’s ultimate rolling capacity.

Meaningful import increases were also seen for wire rod (up 100.1%) and sheet (up 9.5%).  The largest decrease on a tonnage basis was for line pipe, which fell 28.2%, while declines were also seen for heavy structural shapes (down 30.4%), cut-to-length plate (down 16.5%), rebar (down 9.1%) and OCTG (down 5.8%).

Our full report is available to subscribers and provides further thoughts on February imports as well as our outlook for the coming months and implications for steel equities.

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Steel Market Production Cuts – Commercial Metals is planning an outage at its Birmingham, AL steel mill in early May. The mill produces structural shapes and has 800,000 tpy of raw steel capacity and 600,000 tpy of rolling capacity. The outage is likely slated for the week of May 7.

Steel Market Production Increases – Romanian longs producer Ductil Steel has restarted operations at its Otelo Rosu works following a two week stoppage.

Steel Market Production Increases – Japanese producer Nippon Steel has announced that it is increasing capacity at its number 4 blast furnace at its Yawata works by 18 percent. The upgrade is expected to be initiated during the 4^th quarter of 2012 and completed within 85 days.

Sources: American Metal Market and Steel Orbis

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February preliminary steel imports rose a surprising 5.6% from 2.55 million tons (mt) in January to 2.69 mt, mainly due to an unexpected surge of imported semi-finished steel from Brazil, which we estimate increased nearly 60%.  Finished steel imports actually dropped 0.4% in the month, while semi-finished as a total rose 31.1%.

Meaningful import increases were also seen for wire rod (up 100.1%) and sheet (up 9.5%).  The largest decrease on a tonnage basis was for line pipe, which fell 28.2%, while declines were also seen for heavy structural shapes (down 30.4%), cut-to-length plate (down 16.5%), rebar (down 9.1%) and OCTG (down 5.8%).

Our full report is available to subscribers and provides further thoughts on February imports as well as our outlook for the coming months and implications for steel equities.

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Our Advance/Decliner Index came in at 73% this week, essentially flat compared with last week’s 74% (any reading over 50 means that the number of price increases exceeded the number of declines).

Our China Index hit the highest level since last August 2011 – when the slowdown started – rising from 80% to 92% as Chinese steel prices strengthened despite increased noise of a macroeconomic slowdown.  The nominal drop was driven by our Ex-China Index falling for the second straight week from 72% to 68% mainly due to weaker prices in the MENA and CIS regions.

Our full report provides further thoughts about global steel pricing trends and our outlook as well as implications for steel equities.

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Steel Market Production Cuts – Steel Production has been temporarily shut down at Erasteel Söderfors in Sweden since March 20^th due to the spill of a thirty tonne charge. Production is scheduled to restart soon.

Steel Market Production Increases – Nucor Corp.’s steel mini-mill in Marion, Ohio has resumed production after 6 days offline due to an unexpected power outage. The company reports that they took advantage of the outage to do maintenance that had been planned during an outage scheduled for May 13^th.

Steel Market Production Increases – ArcelorMittal in Duisburg, Germany, is near completion for the hot commissioning stage of its new wire rod mill in Ruhrort. The mill has a capacity of 690,000 tpy and is expected to exit its start-up phase in May or June.

Steel Market Production Increases – Chu Kong Petroleum & Natural Gas Steel Pipe Holdings, a major Chinese linepipe maker, has announced that it intends to add another 660,000 tpy of SSAW capacity in the next year. This expansion will bring Chu Kong’s total capacity to 2.71 mtpy.

Sources: Steel Business Briefing, American Metal Market

Weekly domestic raw steel production increased 1.8% to 1.947 million tons (mt) for the week ending March 24, 2012 and was up 5.6% against the year-ago level. The highest production since the recession began was 1.959 mt on March 10, 2012, while the lowest was 0.8 mt on December 27, 2008.

The capacity utilization rate also posted an increase, coming in at 78.8% compared to 77.4% last week and higher than the year-ago level of 75.4%. The highest capacity utilization rate since the recession began was 79.3% on March 10, 2012, while the lowest was 33.5% on December 27, 2008.