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According to Pipe Logix, May OCTG prices declined 1.0% (or $16/ton) to $1,665/ton, the lowest since March 2010 and some 13.1% below the recent high of $1,916/ton in …
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Archive for: ‘May 2013’
Advance/Decliner Index Ticks Slightly Higher on Domestic Sheet Price Hike
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Our Advance/Decliner Index rose slightly after hitting a one-year low last week due solely to…
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Domestic Raw Steel Production Declines from Recent High
For the week ending May 25, 2013, weekly domestic raw steel production decreased to 1.850 million tons (mt), down 2.8% from the eleven-month high of 1.904 mt last week, and 5.7% below the year-ago level of 1.961 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 also fell from last week’s year-high of 79.5% to 77.2% and was also below the year-ago level of 79.4%.
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 Up Slightly From Five-Month Low
The spot reference price for 62% Fe iron ore cfr North China rose a nominal 0.1% to $123.20 for the week ending May 24, 2013, up from last week’s five-month low of $123.10.
The spot price for iron ore averaged $139.35 in 2Q12, $112.12 in 3Q12, $120.57 in 4Q12, and $148.16 in 1Q13; 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 Declines, Canadian Rig Count Continues Climb
The number of active oil and natural gas rigs in the United States declined to 1,762 for the week ending May 24, 2013, down 0.4% from last week’s count of 1,769 and 11.1% below the year-ago level of 1,983.
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 rose 6.5% to 131, the second consecutive weekly increase. Despite the uptick, the number is down 17.1% compared to last year’s 158.
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.
April Imports Surge 8.2%; Japan Highest Since Asian Financial Crisis
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Preliminary April imports jumped 8.2% to a five-month high of 2.68 million tons (mt) from 2.48 mt in March, driven primarily by…
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US Steel Leads with a $50 Sheet Hike
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According to American Metal Market, US Steel is attempting to lead with a $50/ton sheet price hike effectively immediately. This move follows Severstal’s failed attempt…
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April ABI Drops Below 50 for the First Time in Nearly a Year
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The American Institute of Architects’ (AIA) ABI Index – a leading indicator of non-residential construction activity – dropped below 50 to 48.6 in April, indicating…
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April Global Steel Production Rises as China Surges While Rest of World Drops
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April global steel production rose by 1.5% from March to 4.4 million tonnes per day (mtpd) and gained 1.2% from the year-ago level driven by…
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Domestic Raw Steel Production, Utilization Highest in Nearly a Year
For the week ending May 18, 2013, weekly domestic raw steel production rose to 1.904 million tons (mt), up 1.2% from 1.881 mt last week to the highest rate since June 2, 2012. However, output is still 3.6% below the year-ago level of 1.976 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 also rose from 78.5% last week to 79.5% this week, reaching the highest since May 26, 2012, and just below the year-ago level of 80.0%.
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
