Posted: January 23rd, 2013 | Author: Pascal Blanc | Filed under: Commodities, Metals, Steel | Tags: steel, steel brazil, steel china, steel glut, steel india, steel price, steel production | No Comments »
The steel sector still shows a significant global over-capacity according to Ernst & Young’s report, Global steel: A new world, a new strategy, highlighting the issues and challenges facing the sector.
The planet will still produce too much steel this year. Europe may well have closed many furnaces last year, emerging markets have not cut their production and instead increased it! China has an overcapacity of around 40 million tons of steel: its economy can not absorb all this metal since construction as well as the automobile industry slowed down and will only gradually start picking up.
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Posted: December 28th, 2012 | Author: Pascal Blanc | Filed under: China, Commodities, Metals, Steel | Tags: china, china steel, special steel, steel, steel glut, steel production | No Comments »
Worldwide steel mills have reached a total estimated supply capacity of 1.8 billion tons, vs. a steel global demand of only 1.5 billion tons. Like Europe, China produces too much steel and it must restructure its industry.
Over the last 10 years, when steel production increased by 20% in Europe, it went up by 534% in China which now produces nearly half the world’s steel vs. 18% in 2001. The growth of the Chinese steel industry corresponds to the rapid development of the construction and infrastructure industry. Since 2008, the sector has also been heavily subsidized by the Chinese public banks.
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Posted: November 28th, 2012 | Author: Rod Sherkin | Filed under: Steel | Tags: steel, steel price, steel production, steel supply | No Comments »
The trillion-dollar-a-year global steel industry is expected to remain, for the foreseeable future, the most fractured of major industries. The worlds top five steel companies control only 18.2% of global steel supply.
Global steel has big problems: It’s too big; it’s getting bigger; and because it’s so fractured, putting the brakes on seems unlikely.
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Posted: October 17th, 2012 | Author: Rod Sherkin | Filed under: Electricity, Steel | Tags: electrical steel coil, grain-oriented electrical steel coil, steel coil | No Comments »
According to MetalMiner IndX℠ data, grain-oriented electrical steel coil prices and electrical steel coil surcharges per metric ton have both been consistently declining over the past half-year, and the GOES coil price per ton as of September 2012 is the lowest it’s been since June 2006.
David Hartquist, an international trade lawyer and a partner at Kelley Drye & Warren LLP who represents SSINA, cited a large percentage increase for grain-oriented electrical steel so far this year.
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Posted: October 13th, 2012 | Author: Pascal Blanc | Filed under: Commodities, Metals, Steel | Tags: china, commodities, metal, steel | No Comments »
The Worldsteel Association, which includes almost all of the global steel producers, released its October 2012 Short Range Outlook (SRO) for 2012 and 2013. Steel demand will slow down further in 2013: it will only be 2% in 2012, 3, 2% in 2013, against 6% over last year.
What strikes first is the slowdown in emerging countries: 3% additional steel consumption in 2012, a little more next year. It is far from the 10% growth a year for the last ten years. Among these countries, it’s in China that the growth will slow down most. Steel demand in China is expected to increase by 2.5% to 639.5 Mt in 2012 after 6.2% growth in 2011. In 2013, Government stimulus measures are likely to moderately improve the economic situation. This follows sluggish exports resulting from the global economic slowdown. Thus China’s apparent steel use is expected to rise by 3.1% and will reach 659.2 Mt in 2013.
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Posted: September 19th, 2012 | Author: Rod Sherkin | Filed under: Steel | Tags: steel | No Comments »
Low demand, financial crisis in Europe, long delivery lead times, european buyers believing the steel price trend to be negative are all driving poor sentiment in the flat products sector.
In all main EU countries, Germany, France, UK, Italy, Spain, stocks are down and activity is not very good. Steelmaking raw material costs are also moving down and there are fears that mills may even need to cut steel prices in the next few months.
via MEPS EU average steel price down again in september.
Posted: September 5th, 2012 | Author: Rod Sherkin | Filed under: China, Iron ore, Steel | Tags: china, iron, steel | No Comments »
China steel futures fell to an all-time low on Wednesday as poor demand in the world’s top steel market kept the pressure on prices, sending iron ore further below $90 a tonne to its weakest since October 2009.
The most-traded rebar for January delivery on the Shanghai Futures Exchange fell to as low as 3,218 yuan ($510) a tonne, its weakest level since the bourse launched rebar futures in 2009.
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Posted: August 21st, 2012 | Author: Pascal Blanc | Filed under: China, Commodities, Metals, Steel | Tags: china, steel | No Comments »
Chinese steel production may contract in 2012 for the first time in 33 years.
Major Chinese steelmakers will again lower their prices in September, the third consecutive monthly decline. According to a fact sheet published mid-August, Baosteel, the largest Chinese steelmaker, will reduce the prices of its products from 80 to 180 yuan, or 10 to 23 dollars.
Overall decline since August 1st reached 12.5%.
“The steel market may stabilize in the next two months, but demand remains weak, prices are not ready to rebound,” said Essence Securities analyst. Especially since there is little chance that the central government will inject more money into major construction projects in the second semester.
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Posted: August 1st, 2012 | Author: Rod Sherkin | Filed under: Steel | Tags: steel | No Comments »
The US flat products market was described as “steady but slow” in July. The lack of orders kept delivery lead times very short. In an attempt to halt the downward price spiral, leading mills announced hikes of $US40 per short ton on all strip mill products.
Customers were reluctant to commit to the new numbers before they had time to assess the situation. Planned maintenance breaks in the second half of 2012 should help the supply/demand balance.
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Posted: July 11th, 2012 | Author: Rod Sherkin | Filed under: China, Steel | Tags: china, steel | No Comments »
Despite the current weakness in Chinese finished steel prices, MEPS is forecasting a strong recovery in selling values later in the year. The rising figures should be sustained going into 2013.
Reduced steel output during the summer is expected to help the market digest currently high mill inventories. This should enable an autumn recovery in steel consumption to translate directly into a sharp upturn in steel prices.
via MEPS Predicts an autumn steel price upturn in China.