The spot reference price for 62% Fe iron ore cfr North China fell to $110.20 for the week ending August 17, 2012, the lowest level since the week ending December 18, 2009, and down some 3.2% from $113.80 last week.

For the first quarter of 2012, the iron ore price averaged $141.84, and for 2Q, $139.35; this compares to an average of $176.90 for 1H 2011 and $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

The number of active oil and natural gas rigs in the United States fell to 1,914 for the week ending August 17, 2012, down 0.9% from the prior week and down 3.0% from the year-ago level.

The highest weekly rig count in theUnited Statessince 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 again this week by 9.0% to 326 compared with 299 last week, but was down 32.9% from the year-ago level.

The highest rig count forCanadawas 727 on February 3, 2006; the lowest was 29, recorded on April 24, 1992.

Source: Baker Hughes Inc.

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Steel Market Production Increases – Chinese steelmaker Linggang plans to commission two new bar mills with a combined capacity of 1.9 million tpy this September despite having recently curtailed bar production due to insufficient demand.

Steel Market Production Cuts – Moldavian Metallurgical Works (MMZ) has announced that it has temporarily halted production of crude steel which it had been producing at a rate of 18,000 tonnes per month.

Sources: Steel Business Briefing, SteelOrbis

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Steel Market Production Cuts – ThyssenKrupp Steel USA says it will lay off almost 200 employees from its Calvert, AL rolling operations citing weaker market conditions than originally anticipated.

Steel Market Production Cuts – Chinese pipemaker Hengyang Valin Steel Tube has lowered its output target by 7% to 1.3 million tonnes after having just brought a new 500,000 tpy seamless pipe mill online last week.

Sources: Steel Business Briefing, American Metal Markets

Steel Market Production Cuts – A local court ruled this weekend that the Italian steelmaker Riva Group’s 11 million tpy capacity Ilva plant nearTarantocannot continue operating while required environmental retrofits are made.

Steel Market Production Increases – Chinese steelmaker Yukun Steel has begun operations at its new 1.227 million tpy capacity blast furnace inYunnanProvince.

Steel Market Production Cuts – Chinese steelmaker Masteel has shut its medium plate line on August 11 for an output loss of 15,000 tonnes and no restart time specified.

Steel Market Production Increases – South African producer Evraz Highveld has restarted operations after having temporarily suspended them since the end of July due to a strike.

Steel Market Production Increases – Trinidadian steelmaker Centrin has resumed operations today following a demand induced stoppage on June 17 – the company plans to produce steel at its longs mill at a rate of 8,000 tonnes per month.

Sources: Steel Business Briefing, SteelOrbis, SteelGuru and  Evraz Press Release

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