U.S. Rig Count Increases Slightly, Canadian Count Decreases for Second Week

September 16, 2013 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States increased 0.1% from 1,767 to 1,768 for the week ending September 13, 2013, climbing slightly from last week’s two-month low.  The count is also some 5.2% below the year-ago level of 1,864.

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 decreased 2.3% from 389 to 380 this week, falling for a second week after a sixteen-week climb.  Despite the decrease, the count is still some 7.3% above the year-ago level of 354.

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.

Domestic Raw Steel Production, Capacity Utilization Climb from Two-Month Low

September 10, 2013 Posted by Steel Market Intelligence

Weekly domestic raw steel production increased 0.9% to 1.872 million tons (mt) for the week ending September 7, 2013, rebounding from last week’s two-month low of 1.856 mt and is some 3.4% above the year-ago level of 1.811 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 rose from 77.5% last week to 78.1% this week, also climbing from a two-month low, and is above the year-ago level of 73.3%.

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

Iron Ore Price Falls to One-Month Low

September 9, 2013 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China decreased 2.6% to $134.10 for the week ending September 6, 2013, falling to the lowest price since August 7, 2013.

The spot price for iron ore averaged $112.12 in 3Q12, $120.57 in 4Q12, $148.16 in 1Q13, and $125.76 in 2Q13; the full-year 2012 average was $128.30.

The post-recession low was $59.10 on March 27, 2009, while the high was $191.90 on February 17, 2011.

Source: The Steel Index

U.S., Canadian Weekly Rig Counts Decrease

September 9, 2013 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States decreased 0.5% from 1,776 to 1,767 for the week ending September 9, 2013, falling to a two-month low.  The count is also some 5.2% below the year-ago level of 1,864.

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 decreased for the first time in sixteen weeks, falling 2.5% from 399 to 389 this week.  Despite the decrease, the count is still some 12.8% above the year-ago level of 345.

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.

Domestic Raw Steel Production, Capacity Utilization Remain at Two-Month Low

September 4, 2013 Posted by Steel Market Intelligence

Weekly domestic raw steel production decreased 0.3% from last week’s 1.861 million tons (mt) to 1.856 mt for the week ending August 31, 2013, remaining at a two-month low and some 0.4% above the year-ago level of 1.864 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 dropped from 77.7% last week to 77.5% this week, also remaining at a two-month low, but is above the year-ago level of 75.4%.

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 Decreases from Recent Five-Month High

September 3, 2013 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China decreased 0.6% to $137.70 for the week ending August 30, 2013, falling from the recent five-month high of $142.80 on August 14, 2013.

The spot price for iron ore averaged $112.12 in 3Q12, $120.57 in 4Q12, $148.16 in 1Q13, and $125.76 in 2Q13; 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 Unchanged, Canadian Count Climbs but Remains at Five-Month High

September 3, 2013 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States remained at 1,776 for the week ending August 30, 2013.  The count is still some 6.2% below the year-ago level of 1,894.

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 4.2% to 399 this week, climbing for the fifteenth consecutive week, and maintaining the highest count since March 15, 2013.  The count is also some 26.3% above the year-ago level of 316.

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.

Domestic Raw Steel Production, Capacity Utilization Drop to Two-Month Low

August 26, 2013 Posted by Steel Market Intelligence

Weekly domestic raw steel production decreased 0.9% from last week’s 1.878 million tons (mt) to 1.861 mt for the week ending August 24, 2013, falling to a two-month low and remaining at some 0.1% above the year-ago level of 1.863 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 dropped from 78.4% last week to 77.7% this week, which is also a two-month low, but is above the year-ago level of 75.4%.

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 Remains at Four-Month High

August 26, 2013 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China rose 0.5% to $138.60 for the week ending August 23, 2013, remaining at a four-month w-o-w high but slightly lower than the recent mid-week price of $142.80.

The spot price for iron ore averaged $112.12 in 3Q12, $120.57 in 4Q12, $148.16 in 1Q13, and $125.76 in 2Q13; 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 Falls From Eight-Month High, Canadian Count Remains at Five-Month High

August 26, 2013 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States decreased 0.8% to 1,776 for the week ending August 23, 2013, falling from 1,791 last week, which was the highest count since December 14, 2012.  The count is also some 6.4% below the year-ago level of 1,898.

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 climbed 7.0% to 383 this week, maintaining the highest count since March 22, 2013.  The count is also some 14.7% above the year-ago level of 334.

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.