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  • METALMINER INSIGHTS

    We know what metals should cost. Learn more about the detailed cost drivers that go into our should-cost models.

  • METALMINER INSIGHTS

    We know what metals should cost. Learn more about the detailed cost drivers that go into our should-cost models.

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commodities

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Before we head into the weekend, let’s take a look back at the week that was and some of the metals storylines here on MetalMiner, including Goldman Sachs is bullish on commodities, U.S. steel production, global copper mine production and more.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Week of Oct. 26-30 (Goldman Sachs bullish, U.S. steel production and more)

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Steel production

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Global steel production for the first nine months of 2020 fell by 3.2% year over year to 1.35 billion tonnes, the World Steel Association (worldsteel) stated on October 23.

Production over the same time in 2019 was slightly over 1.39 billion tonnes, the Brussels-based organization stated.

Do you use cost breakdowns in your steel negotiations? See other tips in negotiating with mills and service centers

Global steel production falls, but China’s rises

China, the world’s largest steelmaking nation by volume, offset the total decrease with a 4.5% rise in its crude production to almost 782 million tonnes from slightly over 748 million tonnes, worldsteel figures indicated.

September alone saw China pour over 92.5 million tonnes of crude steel. That figure is up 10.9% from the 83.4 million tonnes China poured in September 2019.

Elsewhere in Asia

Vietnam saw the largest increase over nine months in Asia at 14.8% year over year. Total production reached 17.7 million tonnes from the 15.4 million tonnes produced in the first nine months of 2019.

Asia’s total crude production was almost unchanged at just over 1 billion tonnes from 999 million tonnes.

Japan had the largest drop in the region at 19.1% to 70.2 million tonnes from 84 million tonnes.

“The more interesting trend the data shows is the evolution of steel making in SE Asia,” MetalMiner’s Stuart Burns explained. “Japan is suffering but capacity in markets like Vietnam is rising rapidly, in part to meet domestic and regional demand but additionally as Chinese manufacturers offshore to circumvent tariff barriers they are facing in North America and Europe.

“Although much of the production from these new producers is currently flowing into local Asian markets, the quality is sufficiently high to give them access in time into Europe, Japan and elsewhere. The Asian steel story is not confined to China.”

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