This Morning in Metals: Nucor to build rebar micro mill
This morning in metals news: Nucor Corporation announced plans to build a rebar micro mill; oil prices fell last week; and, lastly, tin prices have rallied.
Each month this year, MetalMiner has hosted a webinar on a specific metals topic. The final webinar of 2021 is this Wednesday, Dec. 8, during which MetalMiner experts will overview their price predictions for 2022.
Nucor to build rebar micro mill
Nucor Corporation said it will build a new rebar micro mill in the South Atlantic region.
The firm already has rebar micro mills in Missouri and Florida.
The new mill will have a budgeted capex of $350 million, the firm said, with an annual capacity of 430,000 tons.
“We have recently executed two successful rebar micro mill start-ups and believe the East Coast market will be in need of additional rebar supply in the coming years, particularly with the recent passage of the infrastructure spending bill,” Nucor President and CEO Leon Topalian said. “Rebar has been a core business for Nucor since we got into steelmaking and this project will enable us to maintain our leadership position in the rebar market.”
Oil price slides
Oil prices retreated last week after previously surging above over $80 per barrel ahead of Thanksgiving.
The WTI crude oil price closed last week at $66.26 per barrel, the Energy Information Administration reported, or down $1.89 per barrel from the previous Friday. Prices were under pressure amid concerns regarding the spread of the Omicron variant of the coronavirus.
Tin rally
As we noted Friday, tin prices have rallied of late.
The LME three-month tin price approached $40,000 per metric ton to close last week, according to MetalMiner Insights data, good for a nearly 7% month-over-month increase.
MetalMiner’s Jimmy Chiguil weighed in on the tin price rally.
“Tin prices continue to rally and break any bearish structures that form on small time frames,” he explains. “On the larger picture, tin prices had shown bullish strength by breaking through historical all-time highs, only to head into price discovery beginning in October 2021. Since then, prices have yet to break the steady uptrend line that supports this rally, thus indicating no slowing down of continued rising prices.”
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