Author Archives: Fouad Egbaria

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 competition between the COMEX and LME vis-á-vis electrification, consolidating copper prices, the upcoming MetalMiner 2020 Forecasting Workshop and much more:

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Week of July 19-23 (electrification, hot rolled coil prices in Western Europe and much more)

electric vehicle charging

kinwun/Adobe Stock

Receive the latest short-term and long-term outlook for the full range of industrial metals (base and ferrous) at the annual MetalMiner Forecasting Workshop on Aug. 25

This morning in metals news: South Korean steelmaker POSCO reported its strongest operating profit in Q2 since Q3 2010; the United States International Trade Commission made a determination regarding steel wire mesh from Mexico; and, lastly, tin prices have been soaring.

Cut-to-length adders. Width and gauge adders. Coatings. Feel confident in knowing what you should be paying for metal with MetalMiner should-cost models.

POSCO records strong Q2

POSCO logo

Dennis/Adobe Stock

South Korean steelmaker POSCO reported its strongest operating profit since 2010 in the second quarter of this year.

The steelmaker reported Q2 2020 operating profit of 168 billion KRW ($145.6 million), which jumped to 2,201 billion KRW ($1.9 billion) in Q2 2021.

Crude steel production reached 9.45 million tons in Q2 at a capacity utilization rate of 93.2%. Meanwhile, the steelmaker tallied 9.56 million tons in Q1 at a rate of 95.3%.

However, the Q2 rate marked a sizeable jump from the second quarter of 2020, when output reached 7.79 million tons at rate of 77.0%.

Read more

This morning in metals news: copper prices have stabilized over the last month; U.S. natural gas prices have surged to their highest level since 2014; and, lastly, Cleveland-Cliffs released its second-quarter results.

Receive the latest short-term and long-term outlook for the full range of industrial metals (base and ferrous) at the annual MetalMiner Forecasting Workshop on Aug. 25

Copper prices stabilize

list of commodities prices

bradcalkins/Adobe Stock

MetalMiner Senior Forecast Analyst Maria Rosa Gobitz earlier this month covered the copper market, for which she noted prices had started to consolidate.

The LME three-month copper price had surged to an all-time high May 10 of around $10,700 per metric ton. The price proceeded to cool over the next 5-6 weeks, falling as low as $9,070 per metric ton.

The copper price then consolidated and has traded largely sideways over the last month. On Wednesday, the price closed at $9,244 per metric ton, or up 1.92% month over month, per MetalMiner Insights data.

Natural gas prices surge

Meanwhile, in energy news, U.S. natural gas prices have reached their highest level since 2014, the Energy Information Administration (EIA) reported.

“In June, the U.S. natural gas spot price at the Henry Hub averaged $3.26 per million British thermal units (MMBtu), the highest price during any summer month (April–September) since 2014,” the EIA reported. “Prices in July have increased from June, averaging $3.67/MMBtu through the first two weeks of July. Spot prices for July 14 in every one of the more than 175 pricing hubs tracked by Natural Gas Intelligence exceeded $3.00/MMBtu.”

Cleveland-Cliffs releases Q2 results

Cleveland-Cliffs reported net income of $795 million during Q2 2021, compared with a loss of $108 million during Q2 2020.

“In the second quarter of 2021 we achieved all-time quarterly records in revenue, net income, and adjusted EBITDA,” Chairman, President and CEO Lourenco Goncalves said. “The numbers unequivocally confirm our efficiency in operating the new footprint, resulting from the integration of the two major steel companies acquired in 2020 as a single and indivisible mining and steel company. They also demonstrate our flawless execution in ramping up our state-of-the-art Direct Reduction plant in Toledo to the current level of production above nominal capacity.”

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

The past year since the last MetalMiner Forecasting Workshop has been a turbulent one for metals markets.

The onset of the COVID-19 pandemic, plummeting demand, plant idlings, fast-recovering demand in certain sectors, bullwhip effects, material shortages, rising prices, rising delivery premiums — on and on and on. For metals buyers, planning out metals spend — let alone getting any material at all — proved to be a challenging proposition.

But now, well over a year into the pandemic, economic conditions are improving, broadly, in the United States.

It’s time to take a look at the year ahead.

As MetalMiner CEO Lisa Reisman and Don Hauser, vice president, business solutions, noted during a recent ROTH Capital Partners webinar that we remain in a bull market for metals, even as some have recently shown signs of consolidation. Copper, for example, has fallen off after reaching an all-time high in May. Steel prices continue to rise, but at a less frenetic pace than previously.

So, what does it all mean for metals buyers planning out their spend for the year ahead?

MetalMiner 2022 Forecasting Workshop

MetalMiner Forecasting Workshop details

Industrial buying organizations can get a leg up on their budgeting and forecasting for the year ahead during this year’s virtual MetalMiner 2022 Forecasting Workshop, scheduled for 10 a.m.-1 p.m. CST, Aug. 25, 2021.

MetalMiner experts Reisman, Hauser, Editor-at-large Stuart Burns, Senior Forecast Analyst Maria Rosa Gobitz and Principal Data Analyst Marcos Briones Álvarez will lead the three-hour workshop.

Participants will gain insights into, among other things:

Read more

MetalMiner experts recently joined ROTH Capital Partners for a webinar that covered a wide range of metals topics, including oil prices, macroeconomic trends, and insights into the aluminum, steel and copper markets.

bull market

phive2015/Adobe Stock

The webinar, which took place July 14, followed up on a previous MetalMiner-Roth webinar on May 20, 10 days after metals surged to record highs. Copper, for example, reached an all-time on May 10. MetalMiner CEO Lisa Reisman and Vice President of Business Solutions Don Hauser joined to share their insights on various markets, recapping metals movements in the two months since that peak.

If you missed it live, register here to receive a copy of the webinar recording to hear all of Reisman and Hauser’s insights from the hourlong webinar.

On July 28, get a sneak peek of the MetalMiner annual budgeting and forecasting workshop (a three-hour virtual event that will take place in August 2021). Get ready to plan for 2022. 

Bull market

While prices have come off of the record highs seen in May, they remain elevated. In short, we remain in a bull market.

“We are still in a bull market,” Reisman said. “The nonferrous metals are taking a pause but unless we see them start to fall off toward support levels … they’re still in a bull market.”

However, in terms of the “supercycle” narrative — which we have covered in this space previously — MetalMiner remains skeptical.

“The reason we’re struggling with the big supercycle narrative is that we would expect to see a decade, 1o years, of sustained, upward demand,” she said. “We don’t quite see that.”

With that said, metals demand currently is strong across a range of industries.

Read more

This morning in metals news: global aluminum production rose in June compared to last year, the International Aluminum Institute reported; Ford of Europe reported its Q2 sales; and, lastly, June electricity demand surged amid a heat wave in the Pacific Northwest.

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Global aluminum production rises in June

aluminum ingot

WestPic/Adobe Stock

Global aluminum production reached 5.55 million tons in June, the International Aluminum Institute reported Tuesday.

The June total marked an increase from 5.31 million tons in June 2020. However, output declined from the 5.75 million tons tallied in May 2021.

Furthermore, China’s output reached an estimated 3.25 million tons in June 2021, up from 3.03 million tons in June 2020. However, its output declined from May’s 3.35 million tons.

Ford reports Q2 Europe sales

Meanwhile, Ford of Europe touted sales of 242,618 vehicles in Q2 2021, up 43.7% year over year.

For the year to date (through June), Ford of Europe reported sales jumped 22.6% year over year.

According to the automaker, 46% of its passenger vehicle sales in Euro 20 countries in the second quarter were electric vehicles.

Electricity demand jumps in PNW

Amid a historic heat wave for the Pacific Northwest in June, electricity demand surged, the Energy Information Administration reported.

“A heat wave in the Northwest United States in late June led to more regional demand for electricity. During periods of high temperatures, electricity demand increases as people turn up their air conditioners, dehumidifiers, fans, and other cooling equipment,” the EIA reported. “Very high temperature events, like the one in June in the Northwest, tend to push electricity demand to very high levels.”

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

This morning in metals news: the U.S. steel capacity utilization rate rose to 84.1% last week; privately owned housing starts jumped in June; and, lastly, Pedro Castillo has been declared president-election in Peru.

Does your company have a steel buying strategy based on current steel price trends?

US steel capacity utilization rises to 84.1%

hot rolled steel

niteenrk/Adobe Stock

The U.S. steel capacity utilization rate continues to rise, jumping to 84.1% for the week ending July 17, the American Iron and Steel Institute reported.

The sector churned out 1.86 million net tons during the week. The output total marked an increase of 0.4% from the previous week and 37.7% year over year.

For the year to date, output reached 50.8 million net tons at a capacity utilization rate of 79.6%.

Housing starts jump in June

Meanwhile, privately owned housing starts reached a seasonally adjusted annual rate of 1.64 million in June, the Census Bureau reported.

Read more

This morning in metals news: Rio Tinto reported its Q2 production results; U.S. unemployment rates were down in seven states in June; and, lastly, the U.S. once again led the way in petroleum and natural gas production last year.

You want more MetalMiner on your terms. Sign up for weekly email updates here.

Rio Tinto reports Q2 production results

Rio Tinto sign

Argus/Adobe Stock

Miner Rio Tinto recently reported its Q2 production results, reporting Pilbara iron ore production of 75.9 million tons.

The total marked a 9% year-over-year decline and a 1% decline compared with the previous quarter.

Bauxite production reached 13.7 million tons, or down 6% year over year and up 1% from the previous quarter.

Unemployment falls in seven states

Unemployment rates fell in seven U.S. states in June, the Bureau of Labor Statistics reported.

Read more

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:

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

Week of July 12-16 (Chinese steel exports, CPI rises, cobalt recovers and much more)

Chinese steel factory

fanjianhua/Adobe Stock

Better time your metal market purchases with the MetalMiner Insights platform. Request a demo.

This morning in metals news: Chinese steel exports surged in June, according to General Administration of Customs data; meanwhile, the average cost for U.S. solar power construction continued to decline in 2019; and, lastly, Cleveland-Cliffs released its Sustainability Report 2020.

Cut-to-length adders. Width and gauge adders. Coatings. Feel confident in knowing what you should be paying for metal with MetalMiner should-cost models.

Chinese steel exports jump in June

China map

Zerophoto/Adobe Stock

Chinese steel exports jumped by 23% to 6.49 million tons in June, the General Administration of Customs reported this week.

The country reported steel exports 5.27 million tons in May.

Meanwhile, exports of unwrought aluminum and aluminum products reached 454,397 tons in June, up from 439,097 tons in May.

In addition, exports of rare earths fell from 4,171 tons in May to 4,012 tons in June.

Read more

1 2 3 196