Archive for: ‘October 2012’

Steel Market Production Changes – ArcelorMittal Cuts Big

October 4, 2012 Posted by Steel Market Intelligence

Steel Market Production Cuts – ArcelorMittal announced a permanent shutdown of the 2.5 mtpy Florange, France slab plant that was idled in 2011. The company has made a commitment to the French government to try and sell the plant in the next 60 days, while the finishing lines will continue to operate by sourcing slab from the company’s Dunkirk mill.

Steel Market Production Cuts – ArcelorMittal’s Kazakhstani subsidiary Temirtau aims to cut rolled steel production by 17% in October to 210,000 tonnes, furthering the 10% year-to-date production decline experienced so far this year.

Steel Market Production Cuts – ArcelorMittal will begin to idle the wire rod mill at the Schifflange facility by the end of the year, completing the indefinite shutdown that began in 4Q 2011. The wire rod mill has been operating at only 10% of capacity since then, and orders are expected to be shifted to the newer Duisburg,Germanyplant.

Steel Market Production Increases – Yigang, a subsidiary of Chinese steelmaker Shougang, has finished the testing phase of a new 800,000 tpy bar mill that is part of an upgrade plan to increase both crude and finished steel production at the facility to 2 mtpy.

Steel Market Production Increases – Chinese steelmaker WSP Holdings announced that production at a new 200,000 tpy OCTG plant in Thailand started up in 1H, and an American Petroleum Institute audit was completed in July.

Steel Market Production Increases – Russian steel producer MMK Group plans to boost output at the MMK-METIZ hardware plant by 10% from 496,000 tpy in 2012 to nearly 546,000 tpy in 2013.

Steel Market Production Increases – Taiwanese steelmaker Chung Hung Steel is targeting June 2013 for the start of the testing phase for a new 200,000 tpy structural/OCTG pipe mill in western Taiwan.

Steel Market Production Increases – Turkish steelmaker Tosyali is set to begin operations of a new Algerian facility in February 2013. The plant will be comprised of a 1 mtpy EAF and an 800,000 tpy rebar rolling mill, although the intial run-rate is expected to be 300,000 tpy until hitting a 500,000 tpy rate by June.

Steel Market Production Cuts – Brazilian steelmaker VSB has pushed back the original completion date of 1H 2013 for the new integrated steel facility by as much as two years after the second blast furnace was delayed.

Sources: Steel Business Briefing, SteelOrbis, American Metal Market

Advance/Decliner Index Drops Back Below 50

October 4, 2012 Posted by Steel Market Intelligence

New Report Preview:

Our Advance/Decliner Index fell on broad-based weakening last week, as the frothy ebullience from both Chinese and domestic stimulus announcements lifted and …more

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Flat Rolled Lead Times Mostly Unchanged; Coated Lead Times Starting to Pick Up

October 3, 2012 Posted by Steel Market Intelligence

HRC and CRC lead times for the week ending September 30 remained at 2.9 and 5.4 weeks respectively, flat from 13 and 11-week lows in the previous week.

HDG lead times rose to 6.0 weeks from a 17-week low of 5.4 in the week prior.

Sources: The Steel Index, Steel Business Briefing

HRC = Hot Rolled Coil
CRC = Cold Rolled Coil
HDG = Hot Dipped Galvanized

September Steel Import Licenses Show Small Decline; Final Data Will Likely Rise

October 2, 2012 Posted by Steel Market Intelligence

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September import licenses dropped a healthy 3.4% from August, with sheet imports bucking the trend, up 16% to 611,000 tonnes with hot-rolled (including coiled plate) rising …more

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Iron Ore Prices Fall, But Stay Above $100

October 1, 2012 Posted by Steel Market Intelligence

The spot reference price for 62% Fe iron ore cfr North China fell 2.1% to $104.20/tonne for the week ending September 28, 2012 from $106.4 last week. The recent high was $149.4 on 4/13/2012 and the recent low was $89.0 on 9/7/2012.

For the first quarter of 2012, the spot price for iron ore 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

Domestic Raw Steel Production Falls To 20-Month Low

October 1, 2012 Posted by Steel Market Intelligence

For the week ending September 29, 2012, weekly domestic raw steel production declined 2.4% to 1.780 million tons (mt), the lowest level since January 2011 and came in below 1.8 mt for the first time in the last year.

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 to 72.0% this week, below last week’s 73.8% and the year-ago level of 72.8%.

The lowest production level since the recession began was 800,000 tons for the week of December 27, 2008, while the highest level 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

U.S. Rig Count Falls Again, Canada Slips

October 1, 2012 Posted by Steel Market Intelligence

The number of active oil and natural gas rigs in the United States fell by 11 to 1,848 for the week ending September 21, 2012, down 0.6% from the previous week and 7.1% from a year-ago – reaching the lowest level since May 2011.

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 fell 1.1% to 359 from 363 last week, after having posted 3 consecutive weekly increases – the count remained some 29.6% below the year-ago level.

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.

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October 1, 2012 Posted by Steel Market Intelligence

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