Category: ‘Steel Production’

Domestic Raw Steel Production Hits Fifteen-Week High

December 17, 2012 Posted by Steel Market Intelligence

For the week ending December 1, 2012, weekly domestic raw steel production rose 1.4% to a 15-week high of 1.827 million tons (mt), and is now up 8.8% from the recent low of 1.679 mt for the week of October 27, 2012.

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 came in at 73.9%, up from 72.9% last week, but still down from the year-ago level of 78.5%.

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

Steel Market Production Report – Baogang Increasing Rails Capacity

December 14, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Chinese steel company Baogang has ordered a 400,000 tpy quenching line to produce rails and is expected to begin operations within twelve months.

Steel Market Production Increases – Indian steelmaker Agni Steel is close to commissioning the billet plant of a new South African rebar facility, with the finishing end not expected to come on-line until at least 2014.

Steel Market Production Cuts – Chicago based steelmaker JMC Steel Group has laid off roughly 43% of the workforce at its subsidiary Energex Tube’s Ontario facility and is contemplating a permanent closure of a pipe mill at the location.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market

Steel Market Production Report – Chinese Capacity Continues to Increase

December 12, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Chinese steelmaker Wanli New Materials recently began production of a new 1.2 mtpy pickling line and has plans to commission a 400,000 tpy annealing line in January.

Steel Market Production Increases – Chinese steel company Guoheng Die-Casting Co. is investing in a new steelmaking facility that will have capacity of 900,000 tpy as well as a 1 mtpy longs rolling mill that are expected to come online by the end of 2013.

Steel Market Production Cuts – Taiwanese steelmaker Dragon Steel Corp announced that it will postpone the planned start-date of a 2.5 mtpy blast furnace at the Taichung facility from year-end 2012 to March 2013.

Steel Market Production Increases – Production has been temporarily halted at ArcelorMittal’s Basse-Indre facility in France, due to a strike over the possible shifting of pickling operations from Basse-Indre to the Florange facility. The strike is expected to end by Friday.

Sources: Steel Business Briefing, SteelOrbis

Steel Market Production Report – Zhongtian Increasing Longs Capacity

December 7, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Chinese steelmaker Zhongtian Iron & Steel Group is nearing the completion of a 5 mtpy longs plant that would expand the company’s total finished capacity to 11 mtpy. Five wire rod lines with a combined capacity of 3.5 mtpy have already been commissioned, and two bar mills with a combined capacity of 1.5 mtpy scheduled to begin production in January 2013.

Sources: Steel Business Briefing

Steel Market Production Report – Positive Negotiations with Unions Leading to Re-Starts in Europe

December 6, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – ArcelorMittal is reportedly planning to re-start the blast furnace at the Gijon facility in early 2013, after reaching a new three-year agreement with the local unions.

Steel Market Production Increases – Russian steelmaker NLMK will resume production at the La Louviere rolling mill in Belgium and will keep it operating for 7 days while attempting to negotiate with the unions on a restructuring agreement.

Steel Market Production Cuts – Italian steelmaker Acciaierie di Calvisano has halted operations at the company’s 400,000 tpy billet plant for a scheduled upgrade, which should be completed by January 10, 2013.

Steel Market Production Increases – E&H Tubing Inc. is planning to use the former assets of Indiana Steel & Tube to manufacture steel tubing and is beginning to ramp-up the established facility with one shift of workers already hired.

Sources: Steel Business Briefing, American Metal Market

Steel Market Production Report – Former RG Steel Yorkville Re-Start Delayed

December 5, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – Esmark Steel Group had originally planned to re-start the cold-rolled mill at the former RG Steel Yorkville facility in January, but has now pushed the start date back to March or April due to concerns over environmental liabilities.

Steel Market Production Increases – China-based Wuhan Iron and Steel Co (WISCO) has begun production at the company’s new hot-rolled pickling line, with capacity expected to reach 300,000 tpy in 2013.

Steel Market Production Cuts – Egyptian Iron & Steel Co. is suffering from a shortage of coke due to “technical problems” at its supplier and has been forced to reduce production from 1.2 mtpy to about 0.5-0.6 mtpy.

Steel Market Production Increases – ArcelorMittal has restarted the coil-coating lines at the Liege facility in Belgium after a week-long stoppage due to a strike.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market

Steel Market Production Report – Ilva See-Saw Continues as Plant Will Now Re-Start

December 3, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – Italian steelmaker Ilva has received authorization from a governmental decree to resume production at the 11 mtpy Taranto facility, according to the environmental plan that was issued to the facility in late October. The plant will resume production on Friday, after a week-long idling as a sign of respect to a worker that died in a storm-related accident last Wednesday.

Steel Market Production Increases – Russian steelmaker TMK plans to commission a 900,000 tpy EAF at its Tagmet facility by mid-2013, replacing three open hearth furnaces with a combined capacity of 600,000 tpy. Later in 2013, TMK will also commission a 600,000 tpy seamless pipe mill at the Seversky facility.

Steel Market Production Increases – Chinese steelmaker Baotou Iron and Steel said that it is close to completing the upgrade of the No. 2 rolling line at its rail and beam facility, which will raise capacity to 1.5 mtpy.

Steel Market Production Increases – Chinese steelmaker Shaogang has begun trials of the company’s new 670,000 tpy round bar rolling mill in southern China, with an additional mill for small-diameter bars set for commissioning by year-end.

Sources: Steel Business Briefing, SteelOrbis

Domestic Raw Steel Production Rises After Thanksgiving Holiday

December 3, 2012 Posted by Steel Market Intelligence

For the week ending December 1, 2012, weekly domestic raw steel production rose 3.1% to a 10-week high of 1.818 million tons (mt), compared to 1.764 mt the previous week – which was most likely affected by the Thanksgiving holiday – and is now up some 8.3% from the recent low of 1.679 for the week of October 27, 2012.

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 came in at 73.6%, the highest since late September, and up from 71.4% last week but down from the year-ago level of 74.9%.

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

Steel Market Production Report – SE Asia Sees Increase in Flat-Rolled Capacity

November 29, 2012 Posted by Steel Market Intelligence

Steel Market Production Increases – China Steel Corp plans to begin production at the new 1.2 mtpy Vietnamese CRC JV by year-end 2013 and it will have capacity for 300,000 tpy of hot-dipped galvanized, 200,000 tpy of NGO silicon steel, and 300,000 tpy of pickled and oiled.

Steel Market Production Increases – Thai steelmaker G Steel believes it is close to receiving financing for a “raw material supply facility” that will allow it to re-start HRC production at its 1.8 mtpy Rayong facility and 1.5 mtpy GJ subsidiary in Chonburi. The company estimates that it will restart production in February and will ramp-up to full production over four months; the plants have been idled since early August.

Steel Market Production Increases – Chinese steelmaker Baogang has plans to upgrade the efficiency of its wide hot strip mill No. 1 at the Baoshan facility in Shanghai by installing a new descaler by mid-2013, with a sizing press and roughing stand scheduled for mid-2014.

Steel Market Production Cuts – Vietnam-based Pomina Steel Corp announced that the “Pomina 3” project for a new longs rolling mill is now on hiatus. Pomina has 1.5 mtpy of billet capacity after commissioning a new plant in March, but only has 1.05 mtpy of rolling capacity. While the long-term goal remains to build a plant that would close the capacity gap, Pomina will sell the excess billet until that plan is feasible.

Sources: Steel Business Briefing

Steel Market Production Report – Ilva Finally Closes, Set for Meeting with Italian Government

November 28, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – Italian steelmaker Ilva has announced the closure of the entire 11 mtpy Taranto facility and all down-stream facilities after Italian officials issued a court-order to seize all steel produced over the prior four months. Representatives of Italy’s unions, Ilva’s chairman, the prime minister, and other government officials will meet on Thursday, November 29, in an attempt to resolve the standstill.

Steel Market Production Increases – Severstal North America has restarted the blast furnace at the Dearborn, Michigan facility after finishing repairs. The BF has been offline since November 2 due to the explosion of a cold-air pipe.

Steel Market Production Cuts – The planned restart of Tokyo Steel’s 1.8 mtpy pickling line at the Tahara facility has been pushed back until March of next year. The line has been out of commission since October 15, when a fire broke out at the plant.

Steel Market Production Cuts – Brazilian steelmaker Gerdau is delaying the re-start of the 135,000 tpy Muña longs mill in Colombia from sometime in 2012 to early 2013 due to low demand.

Steel Market Production Increases – Jordanian Taybah Steel will begin production at a new 500,000 tpy rebar facility in Saudi Arabia sometime around August 2013.

Steel Market Production Increases – Chinese pipemaker Fangrui Steel has increased its capacity for welded pipe from 50,000 tpy to 200,000 tpy after the start-up of two new production lines and plans to add an additional 100,000 tpy by year-end 2013.

Steel Market Production Increases – Brazilian steelmaker Gerdau has acquired a 2-strand billet caster for the company’s Mexican (Corsa) operations and plans to begin operations in March 2013, boosting the production run-rate to 400,000 tpy.

Sources: Steel Business Briefing, American Metal Market