Articles in Category: Ferrous Metals

crude oil

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This morning in metals news: In a bid to aid domestic refiners currently limited by steep energy costs, China announced plans to auction crude oil from its strategic reserves. In other news, Shell declares force majeure as Hurricane Ida’s fallout continues. Also in the news, July steel shipments show 37% year over year rise.

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.

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The Stainless Monthly Metals Index (MMI) remained flat for this month’s reading.

September 2021 Stainless MMI chart

Are you under pressure to generate stainless steel cost savings? Make sure you are following these five best practices

Base price and surcharge increase

Both NAS and Outokumpu announced price increases effective Sept. 1.

Outokumpu increased base prices by reducing the discount by one point for all 200 series, 301, 304, 304L, 316L and 430. All other 300 series alloys will see increases by virtue of discount reductions by three points. Outokumpu raised all of its other 400 series alloys by reducing the discount by four points.

In addition to base price increases, Outokumpu increased its width extra for under 48″ to $0.12/lb and added a $0.15/lb gauge extra for 301 18 gauge and lighter. It also increased cut-to-length charges.

NAS increased its base price by reducing the functional discount by one point for 304, 304L and 316L. All other alloys — except for automotive ferritics — will be increased by reducing the discount by two points. Non-430 ferritics will be increased by $0.08/lb, which means these alloys have increased $0.27/lb in 2021.

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The Raw Steels Monthly Metals Index (MMI) dropped by 1.4%, as Chinese steel and U.S. scrap prices declined.

September 2021 Raw Steels MMI chart

Each month, MetalMiner hosts a webinar on a specific metals topic. This month’s discussion is Carbon Steel 2022: What types of steel contracts to set up and when to execute them. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Chinese steel merger to form third-largest steel producer

Chinese steel factory

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On Aug. 20, Chinese steelmakers Ansteel Group and Ben Gang formally began the process of merging their operations. If the process is completed, this will create the world’s third-largest steelmaker, behind China Baowu Group and ArcelorMittal.

Since both companies are state-owned, there will be no money changed in the transaction. Instead, the merger will be a government-backed restructuring in an effort to consolidate production in China’s bloated steel sector. Ansteel will be taking a 51% stake in Ben Gang.

The merged entity will keep the Ansteel name. Its annual production capacity will reach 63 million metric tons of crude steel.

US imports rise

Preliminary reports from the U.S. Census Bureau indicate steel imports rose for a second consecutive month.

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This morning in metals news: U.S. steel capacity utilization dropped slightly last week; the number of drilled but uncompleted oil wells in the U.S. declined in July; and, lastly, the construction sector shed 3,000 jobs in August.

Are you prepared for your annual steel contract negotiations? Be sure to check out our five best practices

Steel capacity utilization hits 84.5%

hot rolled steel

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The U.S. steel capacity utilization rate for the week ending Sept. 4 fell to 84.5%, the American Iron and Steel Institute (AISI) reported this week.

The rate marked a decline from 84.9% the previous week.

Meanwhile, steel output last week totaled 1,866,000 net tons, AISI reported. The total marked a 0.4% decline from the previous week but a 23.5% year-over-year rise.

DUCs decline in July

Meanwhile, in energy news, the Energy Information Administration (EIA) reported drilled but uncompleted (DUC) wells in the U.S. fell to their lowest monthly level in July since November 2017.

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One of India’s foremost steel companies, Jindal Steel & Power Ltd., has announced plans to invest U.S. $2.4 billion to increase capacity over the next six years as recovery from the COVID-19 pandemic boosts steel demand.

“Domestic steel prices have recovered from the lows of the COVID-induced volatility and are increasing spurred by improving demand prospects,” the firm said in its August investor presentation.

Volatility is the name of the game. Do you have a steel buying strategy that can handle the ups and downs?

Jindal Steel to ramp up capacity

India

Zerophoto/Adobe Stock

The steelmaker will increase its total capacity to 15.9 million tons (MT) by March 2025 from 8.6 MT, it said in an investor presentation recently. According to the statement, the company plans to more than double pellet production capacity to 21 million tons by 2024.

On Monday, in a statement to the stock exchanges, the steel company announced that its board had approved fundraising measures that include issuing non-convertible, senior, unsecured, fixed rate or LIBOR notes worth U.S. $1 billion.

JSPL’s plan includes raising money as part of its long-term goal of becoming debt-free and increasing production capacity to 15.9 MT by FY 2024.

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This morning in metals news: U.S. steel capacity utilization dipped to 84.9% last week; North American Stainless said it is maintaining fuel surcharge; and, lastly, RUSAL earlier this month reported its interim H1 2021 results.

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Steel capacity utilization dips to 84.9%

steelmaking in an EAF

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U.S. steel capacity utilization dipped to 84.9% for the week ending Aug. 28, the American Iron and Steel Institute reported.

Steel output during the week reached 1.87 million net tons. That weekly total marked a decline of 0.2% from the previous week. However, output increased by 26.9% on a year-over-year basis.

For the year to date, steel production reached 62.0 million net tons. Capacity utilization during that period reached 80.5%. During the same period in 2020, the rate reached just 66.6%, with output at 51.7 million net tons.

NAS updates fuel surcharge

North American Stainless (NAS) today said it will maintain its fuel surcharge of 27% for stainless flat and long products.

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Higher stock levels and summer holidays have seen prices for hot rolled coil in Western Europe move off since late July, industry watchers said.

“I have the impression that people are not fully back yet from their holidays,” one source said.

Those who have returned are now either taking a wait-and-see approach to any new buying or are purchasing only small amounts, the source added.

Volatility is the name of the game. Do you have a steel buying strategy that can handle the ups and downs?

Hot rolled coil slides in Western Europe

hot-rolled coil steel

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Offers on hot rolled coil prices produced in Western Europe are now about €1,150 ($1,350) per metric ton exw for December delivery. That marked a drop of 4.2% from the €1,200 ($1,410) in July.

Prices for cold rolled coil, a downstream product of hot rolled coil, normally carry a premium of €100-120 ($120-140) per metric ton.

Import offers on hot rolled coil from the Far East are now about €1,000 ($1,175) per ton cfr European ports, sources also said.

Another trader reported he had heard of offers from South Korea at €960 ($1,130) per metric ton cfr Antwerp.

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As has been well documented by now, demand for a wide variety of materials plunged on the heels of the onset of the COVID-19 pandemic last year.

E.U. flag

Andrey Kuzmin/Adobe Stack

Among those materials, of course, is steel.  Consumer demand for steel-using products declined and construction projects came to a halt.

However, data from the European Steel Association show demand picking back up among EU28 nations this year.

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.

EU steel demand shows signs of recovery

Earlier this month, the European Steel Association (EUROFER) said apparent steel consumption in the EU28 rose by 3.6% in Q4 2020. In Q1 2021, apparent steel consumption rose by 0.9%.

“Although the general economic recovery in the EU appears to be uneven and exposed to risks, the recovery in steel-using industries and in steel demand should continue through 2021,”EUORFER Director General Axel Eggert said. “This is being driven by the stronger-than-expected recovery of industrial sectors, whose output is recovering the losses experienced during the pandemic.”

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Global crude steel production fell month over month for the second straight month in July, the World Steel Association reported this week.

With volatile steel markets, knowing which strategy to execute and when can make all the difference between saving and losing money. See how MetalMiner looks at different market scenarios

Global crude steel production drops

China steel production

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Global crude steel production totaled 161.7 million metric tons in July, the World Steel Association reported.

The total marked a decline from 168 million metric tons in June. Furthermore, production totaled 175 million metric tons in May.

Meanwhile, July production jumped 3.3% on a year-over-year basis.

Chinese steel production curbs take hold

Beijing’s efforts to curb steel production might not have been particularly successful during the first half of the year, as Chinese steel production surged. Chinese steel production from January through June totaled 563.3 million tons, or up 11.8% year over year.

However, the country’s steel output has declined in each of the last two months.

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U.S. steel imports totaled 2.7 million metric tons in July, the Census Bureau reported this week.

The total marked an increase from 2.6 million metric tons in June.

Are you under pressure to generate steel cost savings? Make sure you are following these five best practices.

US steel imports paced by blooms, billets and slabs

steel made in an EAF

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The July rise in imports came largely on the back of a jump in imports of blooms, billets and slabs.

Imports for that category totaled 860,790 tons, up 8.2% from 795,863 tons in June.

Meanwhile, imports of hot dipped galvanized sheets and strips totaled 228,981 tons in July, up from 177,925 tons the previous month.

Imports of oil country goods rose to 160,025 tons from 154,073 tons the previous month.

Rebar, hot rolled sheet imports decline

However, imports of reinforcing bars fell to 82,623 tons from 94,915 tons the previous month.

Hot rolled sheet imports totaled 282,605 tons in July, down from 311,461 tons the previous month.

Wire rod imports fell to 101,746 tons from 113,408 tons in June.

North of the border

By country, imports from Canada increased to 594,500 from tons in July from 579,405 tons the previous month.

Meanwhile, imports from Mexico fell 7.9% month over month to 349,343 tons.

Imports from Russia surged by 30.5% to 210,540 tons.

Elsewhere, imports from Japan plunged to 60,924 tons in July from 126,982 tons in June. Korean imports jumped to 265,573 tons from 248,582 tons the previous month.

In addition, imports from Brazil surged by 34.8% month over month to 413,306 tons in July.

Steel Dynamics eyes Q4 for new flat rolled mill

Steel buyers continue to face myriad challenges, from market tightness to logistics issues.

Global steel production declined for the second straight month on a month-over-month basis in July, the World Steel Association reported this week.

Global steel production totaled 161.7 million tons in July, down from 168 million tons the previous month. Meanwhile, May production totaled 175 million tons.

Furthermore, Beijing’s efforts to curb steel production appear to be taking hold. China’s steel production also declined for a second straight month, totaling 86.8 million tons in July (down from 93.9 million tons in June.

In the U.S., buyers are vying for limited supply, whether domestically or in the form of steel imports, amid an unprecedented ascent of steel prices over the last year.

Some relief is coming in the form of Steel Dynamics, Inc.’s (SDI) new electric arc furnace (EAF) flat rolled mill in Sinton, Texas. In its Q2 investor report, the steelmaker said it plans to start production at the mill in mid-Q4 2021. The company estimated an investment price tag of $1.9 billion for the new mill.

SDI estimates the mill will add 3 million tons in annual production, bringing its total annual capacity to nearly 14 million tons.

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.

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