Steel Products
Iron Ore & Scrap Futures
Written by Bradley Clark
August 16, 2013
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Typically Quiet Mid-Month Market
While the HRC futures market is experiencing a summer lull, the AMM Busheling contract has been virtually non-existent the past few weeks. After the physical market for busheling priced sideways this month the futures market has not reacted.
It seems that the usual pattern of a busy beginning of the month during the pricing period for the underlying market is followed by a sluggish middle of the month in the paper market. All eyes are on the physical market with close attention to what is happening in the export market to get some hints to how prices shape up in September. The early thoughts are that the market remains flat again in September as supply and demand looks to be fairly balanced.
There have been no reported trades this past week.
TSI Iron Ore: Prices Taking a Breather…
Iron ore continued to make new highs last week with the spot getting above $142 per ton for the first time since early spring. While the futures market experienced similar gains this past week, some profit taking was experienced today as the physical market looked to be taking a breather. Good economic news out of China continues to fuel the ideas that this recent rum up in prices will be maintained through the end of the year, however, the market remains very skittish at these high levels as many traders have the recent sharp decline in prices fresh in their minds.
Volumes on SGX remain very strong and the curve remains backwardated with September trading around $133, Q4 at $128 and cal 14 at $117.
Bradley Clark
Read more from Bradley ClarkLatest in Steel Products

Domestic mill shipments rise in June: AISI
US steel shipments increased month over month and year over year in June, according to the latest figures from the American Iron and Steel Institute (AISI).

Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.

OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.

Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.