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Our Advance/Decliner Index rose for the fifth consecutive week, rising to the highest level since February as global raw material prices trended higher in the week…
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June ISM Steel Survey – Optimism in the Air
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The June Institute for Supply Management Steel Buyer Survey once again showed an improved outlook for the overall economy and respondents’ own businesses after hitting a…
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Domestic Raw Steel Production, Capacity Utilization Back Up
Weekly domestic raw steel production rose 3.0% from 1.822 million tons (mt) last week to 1.876 mt for the week ending July 6, 2013, and is some 0.4% above the year-ago level of 1.869 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, rising from 76.1% last week to 78.3%, which is above the year-ago level of 75.6%
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 Reaches Six-Week High
The spot reference price for 62% Fe iron ore cfr North China rose 5.2% to $122.60 for the week ending July 5, 2013, climbing consistently throughout the week and reaching the highest price since May 23, 2013.
The spot price for iron ore averaged $139.35 in 2Q12, $112.12 in 3Q12, $120.57 in 4Q12, and $148.16 in 1Q13; 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 Ticks Higher, Canadian Rig Count Reaches Three-Month High
The number of active oil and natural gas rigs in the United States increased 0.5% to 1,757 for the week ending July 3, 2013, up slightly from last week’s count of 1,748 but is some 10.6% below the year-ago level of 1,965.
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 increased 3.9% from 206 to 214 this week and reached the highest count since March 28, 2013. Despite the increase, the count is still some 18.9% below the year-ago level of 264.
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 Scrap Prices Snap Back from Recent Lows
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According to just-published data from American Metal Market, July prime scrap rose $30/ton (+7.9%) to $410 and shredded gained $16/ton (+4.4%) to $376/ton. The relative…
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June Steel Imports Drop to Four-Month Low; Impact from OCTG Trade Case Could Be Felt Soon
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June steel import licenses declined 10.1% to 2.33 million tonnes (mt) from May’s 2.59 mt driven by declines for…
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Nucor Holds Long Prices Flat Ahead of Scrap Settlement; Another Nail in the Surcharge Coffin
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In a leading move, Nucor announced July bar pricing – the company is keeping rebar and merchant bar prices unchanged for July shipments, despite shredded scrap prices…
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Domestic Raw Steel Production, Capacity Utilization Halt Three-Week Upward Trend
Weekly domestic raw steel production decreased 3.1% from 1.881 million tons (mt) last week to 1.822 mt for the week ending June 29, 2013, halting a three-week upward trend and falling some 3.1% from the year-ago level of 1.881 mt. We suspect the drop is mainly driven by the blast furnace outage at AK Steel’s Middletown Works.
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 decreased for the first time in three weeks, dropping from 78.5% last week to 76.1%, the same as level asa year-ago.
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
Advance/Decliner Index Rising but Still Weak; Chinese Pricing Declines
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Our Advance/Decliner Index rose for the fourth straight week. The increase was driven by our Ex-China Index rising to a 15-week high, while our China Index…
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