This morning in metals news: U.S. Steel offered a bullish view of the steel market in its first-quarter guidance; the Chinese steelmaking city of Tangshan is moving to tackle pollution; and the tin price has bounced back up over the last two weeks.
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U.S. Steel bullish on steel fundamentals
U.S. Steel released its first-quarter guidance Friday, in which President and CEO David B. Burritt indicated the company is bullish on steel fundamentals.
“Solid market fundamentals, low steel supply chain inventories, continued consumer-driven demand, and pent-up infrastructure demand has us increasingly bullish,” he said.
U.S. Steel expects adjusted net income in the first quarter to come in at $160 million, excluding special items.
The steelmaker has benefited from rising steel prices.
“The Flat-rolled segment is expected to generate significantly higher sequential EBITDA in the first quarter,” the steelmaker said in its guidance. “Higher steel prices over the past several months are increasingly flowing through the segment’s average selling prices in its adjustable and reset annual fixed price contracts. Additionally, the restart of Gary #4 blast furnace has improved operating efficiency.”
Tangshan authorities to address steelmaking pollution
Authorities in the city of Tangshan, a major steelmaking hub, aim to address heavy pollution levels in the northern Chinese city, the South China Morning Post reported.
According to the report, the vice mayor of Tangshan over the weekend ordered factories to limit or halt production on days when a heavy pollution alert is raised.
The decisions comes after inspections found four plants had failed to comply with pollution regulations, according to the report.
Tin bounces back
After retracing to close February — falling from a peak of $27,300 per metric ton down to $23,000 per metric ton to start March — the price has since bounced back.
LME three-month tin closed Friday at $26,170 per metric ton.
Despite the late February drop, the price remains up 13.56% from a month ago.
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