This morning in metals news: the U.S. steel sector’s capacity utilization rate rose to 71.1% last week; WTI crude oil has bounced back up over the last week; and Arconic recently released its Q3 financial results.
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.
U.S. steel capacity utilization up to 71.1%
U.S. steel mills posted a capacity utilization rate of 71.1% for the week ended Nov. 7, the American Iron and Steel Institute (AISI) reported.
Mills produced 1.57 million net tons during the week, up 1.0% from the previous week. Production during the week, however, fell 13.7% on a year-over-year basis.
Capacity utilization during the same week in 2019 reached 78.8%.
WTI crude bounces back
In addition to capacity utilization, the oil price is another factor MetalMiner considers in its long-term forecasting.
After dipping below $40 per barrel, the WTI crude price has bounced back.
WTI crude closed Monday at $40.29 per barrel, according to the Energy Information Administration (EIA). (As readers of our Annual Outlook know, oil prices are one of three pillars MetalMiner looks at in its macroeconomic, long-term forecasts.)
WTI jumped by $3.48 per barrel from last week.
Arconic releases Q3 results
Pittsburgh-based Arconic released its Q3 results earlier this month, reporting Q3 sales of $1.4 billion. The sales figure marked a 19% increase from the previous quarter but a decline of 22% year over year.
Arconic reported Q3 2020 net income of $5 million compared with a Q3 2019 net loss of $24 million.
“This quarter demonstrated the positive impact our strategic and financial actions made in response to ongoing macro challenges,” Arconic CEO Tim Myers said. “Our continued execution on cash conservation and productivity measures instituted earlier in the year combined with recovery in North American automotive production resulted in the large sequential increase in Adjusted EBITDA and operating cash flow compared to the prior quarter.”
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