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Our Advance/Decliner Index declined slightly this week as news of a 2.3% rebound in Chinese steel production in mid-July and a 1.9% drop in iron ore prices put downward…
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Domestic Raw Steel Production, Capacity Utilization Increase Slightly
Weekly domestic raw steel production rose 0.9% from last week’s level of 1.871 million tons (mt) to 1.888 mt for the week ending August 3, 2013, and remains some 1.3% above the year-ago level of 1.843 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 slightly, increasing from 78.1% last week to 78.8% this week, and 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
July ISM Steel Survey – Where Did the Optimism Go?
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The July Institute for Supply Management (ISM) Steel Buyer Survey showed a flattening of the outlook for the overall economy and respondents’ own businesses and indicated…
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Iron Ore Price Down Slightly From Three-Month High
The spot reference price for 62% Fe iron ore cfr North China fell 1.9% to $130.10 for the week ending August 2, 2013, decreasing from the three-month high of $132.60 last week.
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 Reaches Almost Eight-Month High, Canadian Rig Count Remains at Almost Five-Month High
The number of active oil and natural gas rigs in the United States increased for the fifth consecutive week, up 0.3% from last week’s 1,776 to 1,782 for the week ending August 2, 2013, becoming the highest level since December 14, 2012. Despite the increase, the count is some 7.7% below the year-ago level of 1,930.
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 for the twelfth consecutive week, up 3.7% from 329 to 341 this week and remaining at the highest count since March 22, 2013. The count is also some 12.5% above the year-ago level of 303.
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.
Chinese Steel Production Flash – Mid-July Output Rebounds on Rising Prices
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Chinese steel production estimated by the China Iron & Steel Association (CISA) rose 2.3% to 2.13 million tonnes per day (mtpd) in mid-July, after posting a surprising 4.5% drop…
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Domestic Raw Steel Production, Capacity Utilization Fall
Weekly domestic raw steel production fell 1.7% from last week’s 13-month high of 1.904 million tons (mt) to 1.871 mt for the week ending July 27, 2013, but remains some 1.4% above the year-ago level of 1.846 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 fell from a 14-month high of 79.5% last week to 78.1% this week, but is above the year-ago level of 74.7%.
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 Highest Since January; Chinese Pricing Strength Continues – For Now
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Our Advance/Decliner Index rose to the highest level since early January. The increase was driven by our Ex-China Index rising as more price increases were announced in…
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Iron Ore Price Reaches Three-Month High
The spot reference price for 62% Fe iron ore cfr North China rose 0.7% to $132.60 for the week ending July 26, 2013, the highest price since April 30, 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 Continues Climb, Canadian Rig Count Remains at Four-Month High
The number of active oil and natural gas rigs in the United States increased for the fourth consecutive week, up 0.3% from last week’s 1,770 to 1,776 for the week ending July 26, 2013, but is still some 7.7% below the year-ago level of 1,924.
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 for the eleventh consecutive week, increasing 1.5% from 324 to 329 this week and remaining at the highest level since March 22, 2013. The count is some 2.7% below the year-ago level of 338.
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.
