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Our Advance/Decliner Index fell back to its one-year low after posting a nominal uptick the previous week. A sharp 5% drop in iron ore prices combined with news of…
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Archive for: ‘May 2013’
Iron Ore Price Falls Back to Five-Month Low
The spot reference price for 62% Fe iron ore cfr North China fell 5% to $123.10 for the week ending May 17, 2013, decreasing from last week’s price of $129.60 to the lowest price since December 7, 2012.
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 Remains Steady, Canadian Rig Count Climbs from Three-Year Low
The number of active oil and natural gas rigs in the United States remained at 1,769 for the week ending May 17, 2013, but was still 10.9% below the year-ago level of 1,986.
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 4.2%, halting the eleven-week downslide and rising from the three-year low of 118 recorded last week. The rig count is at the same level as a year ago.
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 Steel Distributor Shipments Show Surprising Pick-up; Inventories Drop on Flat-Rolled Decline
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April MSCI shipments rose 1% sequentially versus the normal seasonal drop of 1.8%, with shipments for all products posting sequential gains. However, we suspect this is due to…
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Domestic Raw Steel Production, Utilization Fall Slightly
For the week ending May 11, 2013, weekly domestic raw steel production decreased to 1.881 million tons (mt), down 0.2% from last week’s 9-month high of 1.884 mt, and 4.2% below the year-ago level of 2.005 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 11-month high of 78.6% to 78.5% this week, and was below the year-ago level of 81.1%.
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 Remains Dismal; Ex-China Index Hits Four-Year Low
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While our Advance/Decliner Index posted a nominal uptick, our Ex-China Index declined to a four-year low due to a combination of Chinese overcapacity being exported and…
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Iron Ore Price Rises Modestly From Five-Month Low
The spot reference price for 62% Fe iron ore cfr North China rose 1.2% to $129.60 for the week ending May 10, 2013, increasing from last week’s price of $128.10, which was the lowest since December 13, 2012.
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 Increases for Second Week, Canadian Rig Count Hits Three-Year Low
The number of active oil and natural gas rigs in the United States increased for the second consecutive week, rising 0.3% to 1,769 for the week ending May 10, 2013. While the number of rigs is up from 1,754 last week, it is still 10.4% below the year-ago level of 1,974.
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 for the eleventh consecutive week, down 2.5% from 121 to 118, the lowest count since May 7, 2010. The rig count is also down 1.7% from the year-ago level of 120.
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.
Advance/Decliner Index Lowest Since Last May
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Our Advance/Decliner Index remained at a one-year low last week as our China Index remained at a low level due to a combination of…
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April Chinese Steel Exports Hit New Post-Recession High
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With estimated late April Chinese production hitting yet another new all-time high following production records that were set during 1Q, Chinese overcapacity has driven…
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