The recent resurgence of the steel industry in Japan has resulted in a scrap shortage in the Far East, despite lackluster finished steel sales. Japan’s resurgence is a partial result of Abenomics due to the weakening yen (currently at 101). Automobile sales, appliances and public infrastructure spending/reconstruction has resulted in very healthy steel demand in […]
Shipping markets in the Gulf are seeing some strong rates as producers are anxious to fix and load cargoes before the holidays and year end according to the November 20th MID-SHIP Report. Shipping rates in the The Cape and Panamax markets have eased in the past two weeks but Chinese steel mill restocking of iron […]
The total number of Key Market Indicators considered at present is thirty six. The present situation of eleven of the indicators based on historical standards was positive on November 21st the same as on October 31st but there were two changes. We changed the situation of demand for commercial and industrial bank loans from green […]
Iron Ore Resilient is the word best used to describe this market with Iron Ore still $136.6/MT on the index. A third ISM number out of China above 50, this time for October, has some traders quite buoyed by the growth potential there. Growth out of China is as clear as mud as always, but […]
Severstal NA reported sales volume increased 2.6 percent quarter-over-quarter to 1.2 million tonnes in the third quarter due to improved sales of CRC and galvanized products. Revenue was reported at $993 million, up 4.2 percent from $953 million in the second quarter. Higher sales volume and pricing along with lower costs at Severstal Columbus resulted […]
Cia Siderúrgica Nacional SA (CSN) reported a record third quarter with net revenue of $4.7 billion reais ($2.02 billion) , up 15 percent from the second quarter and 23 percent from third quarter 2012. EBITDA rose 51 percent from second quarter to $1.7 billion reais ($731 million) due to strong performance in its steel and […]
TSI Iron Ore: Market Remains Firm Iron ore prices have continued to be strong as Rebar futures have bounced off recent months lows last week and spot steel in China continues to go higher. Over the past couple of weeks iron ore prices have pushed up around $5/ton down the curve with Q1 trading around […]
Vale reported net earnings of $3.5 billion in the third quarter, up 120 percent from the same quarter in 2012. Iron ore production was 85.9 million tonnes, up 17.3 percent from the previous quarter and the second best quarter of production in Vale’s history. Iron ore production for the first nine months of 2013 was […]
ArcelorMittal reported a net loss of $193 million in the third quarter. Sales of $19.6 billion were down from $19.7 in the second quarter and $20.2 billion in the third quarter of 2012. EBITDA of $1.7 billion was reported for the quarter, 24 percent higher than the same quarter in 2012 and well above analyst […]
Latin American steel mill Ternium reported net sales of 2.14 billion on shipments of 2.3 million tons of steel and 930 thousand tons of iron ore. Steel shipments were up 4 percent from second quarter and 2 percent from third quarter 2012. Iron ore shipments were down 24 percent from second quarter but up 106 […]
Goldman Sachs steel analysts, in a letter to their clients seen by Steel Market Update, upgraded the steel sector as they feel, “…we see the sector heading to a sustainable recovery over the coming years…” They went on to tell their clients, “The supply-demand fundamentals for steel are starting to look more appealing, particularly for […]
The inputs which affect steel prices increased slightly during the month of September with the exception of shredded scrap and 58% Fe Iron Ore prices. Busheling and HMS scrap prices increased by $3 to $5 per ton in the Midwest. Iron ore spot pricing – which is measured out of China – showed one product […]
On Thursday, October 31st Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been bouncing […]
Last evening (Thursday, October 31st) Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered at present is thirty six. The present situation of eleven of the indicators based on historical standards was positive on October 31st and thirteen were negative; […]
Last evening (Thursday, October 31st) Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been […]
In my last ditty, I mentioned we were likely headed to the 1775-1800 area on the S&P 500. Well yesterday we reached 1775. However, the Fed statement from their October meeting yesterday had just enough language changes from the September meeting that some felt nervous and got out of some of their positions and the […]
Altos Hornos de Mexico (AHMSA) reported a net loss of 520 million pesos ($40.3 million) in the third quarter of 2013, as compared to a net loss of $26.6 million in third quarter 2012. Sales were 9.475 million pesos ($735.2 million) on shipment of 886,524 tonnes of steel product, down from sales of $751.1 million […]
TSI Iron Ore: Market Soften As Rebar Slides Iron ore prices have been fairly volatile over the past week as conflicting data and information coming out of China as moved the needle in opposite directions. The upshot to all of this intraday volatility is that prices remain fairly unchanged on a week-on-week basis. With rebar […]
Completion of the Essar Steel Minnesota taconite project has been delayed until late 2015 according company officials. The facility, begun in 2008, was originally slated for completion in 2013 and would increase annual production of taconite pellets from 4 million tonnes to 7 million tonnes. Essar Steel Minnesota CEO and President Madhu Vuupuluri said production […]
Financial Markets: Okay now that that mess is over with, the S+P 500 and other U.S markets can get back to the business of what they do best – Go Up! In fact we, have already reached all time highs (again) today with the S+P 500 at 1733. As I noted, we are likely headed […]
Shipping in the Capesize Market is beginning to slow down after a strong September driven by iron ore restocking in China and exports of ore from Brazil. According to the MID-SHIP Report on Oct. 10, average Capesize earnings fell to $33,368 from $42,211 two weeks ago. Time charters averaged $30,000 prompting owners to turnover cargo […]
Bank of America Merrill Lynch Research metals and mining analyst, Timna Tanners was recognized by Institutional Investor as the top analyst in the space. Last year, Institutional Investor ranked Ms. Tanners as the second best analyst in the metals and mining space which includes the steel industry. Tanners has been with Bank of America Merrill […]
On the Far East Asia side, market for finished products is still weak and in an oversupply situation. Most Asian mills coming into October will resume full production schedules after the summer time electricity curtailments. However, this added production is going into a weak finish demand situation. Consequently, even with the recent slide in the […]
Financial Markets: Two weeks back we suspected that the SP 500 and other US equities markets would struggle with all this Government Shutdown shenanegans. Sure enough, the SP 500 dropped progressively down to a low of 1646 yesterday from the 1697 level we had two weeks ago. However, since the announcement today of the preverbial […]
TSI Iron Ore: Market Quiet During Chinese Golden Week… Iron ore prices have remained steady over the past week as the Chinese have been off for their Golden Week holiday. Demand while steady appears to be seen as fragile by many. The market remains in backwardation with prices down the curve continuing to trade at a […]
September ended with the SMU Price Momentum Indicator pointing toward Neutral. In light of the price increase announcements beginning to come out of the domestic steel mills we will continue our Neutral position allowing all the mills to announce (or not) and buyers to react before making a change toward one direction or another. SMU […]
When I last wrote two weeks back the SP 500 had failed to break down as expected and technicals suggested we were headed to 1775 as next long term target. Well within one week of that report the SP 500 hit 1730 from that Sep 12th 1685 area. This rally was in large part due […]
The shipping industry is set for a profitable year for the first time since 2010 according to the September 25 MID-SHIP Report. Freight rates are continuing to rise and demand for large size ships is finally beginning to outpace supply. The industry has faced a supply glut partially due to shipyards offering vessels at low […]
A storage dome collapse will delay the start-up of Nucor’s new DRI plant in Convent, La., until the end of the year said Nucor officials in a press release on Sept. 26. On Wednesday afternoon, one of three storage domes for storage of iron ore pellets, suffered structural failure and collapsed, creating what sounded like […]