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Tag Archives: ferrous

Five global trends for the ferrous and steel sectors

S&P Global Platts hosted its Ferrous & Steel Outlook event in Singapore last week. Here are five key takeaways from the event. 1. China winter steel production cuts of less concern than property sector   Chinese mills have been less inclined to restock iron ore for fear they will be ordered to cut crude steel or sintering production over winter to reduce emissions, which would curb demand for iron ore and pull down prices. S&P Global Platts China steel analyst Jing Zhang...

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Battle on the Iron Range: Between a Cliff and a Hard Place

US miner Cleveland-Cliffs said Monday the courts handed it the breakthrough it wanted at a site rich with iron ore resources in Minnesota. The United States Bankruptcy Court for the District of Delaware has reaffirmed the 2017 Cliffs acquisition of land located in Nashwauk, Minnesota, and the ruling resolved the land dispute in favor of Cliffs and Glacier Park Iron Ore Properties, the miner said in a statement Monday. Cliffs CEO Lourenco Goncalves said on Friday he was determined to fight...

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Japan aluminum’s tipple of choice: US bourbon in a can

Jim Beam, the world’s biggest-selling US bourbon whiskey, is sold mostly in aluminum cans in Japan — which could potentially take an unintended hit from the US’ recent move to impose a 10% levy on aluminum imports. Depending on how world leaders respond, global aluminum supply flows may change if there are hiccups in the supply chain and volatility in prices. Australia, which has been exempted from the new US aluminum and steel tariffs, is not a major aluminum exporter to...

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LME ferrous scrap contract spread to underlying market persists: analysis

With the London Metal Exchange’s ferrous scrap futures contract clearing a record 500,000 metric tonnes last month, we take a closer look at market fundamentals driving up both physical and forward prices for obsolete scrap in recent weeks. Spot prices for HMS #1&2 80:20 CFR Turkey were range-bound for the first half of November, with Platts TSI’s assessment between $300-310/mt. At the same time, the front-month futures contract on the LME (December 2017) was trading at a...

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Pig iron, scrap, steel trade hit by electrode shortage

The steel industry’s current hot topic, tight electrode supply and higher pricing, threatens to cut steel output and raise mill costs. This is leading traders to debate the impact across various steel mills and applications. A cut in steel output due to shortages of the raw material is a real fear, while higher costs are already being reflected in spot electrode pricing, up over tenfold in some cases. A beneficiary may be merchant pig iron, and direct-reduced iron/hot-briquetted iron,...

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Chinese steelmaking cuts hammer market

Chinese domestic market strength and reduced export volumes have been a primary driver of the global steel and iron ore rally this year. But there are growing signs that dark clouds are gathering over the world’s largest steel market. Shanghai Futures Exchange rebar and Dalian Commodities Exchange iron ore futures have taken a bath over the last few weeks, driving bearish sentiment in the physical steel market. The S&P Global Ratings downgrade of China pushed them markedly lower...

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‘September US scrap collapses to sideways’: How can this be?

In 1968 there was an American college football game between two Ivy League schools, Harvard and Yale. Harvard, an underdog entering the game, scored 16 points in the final 42 seconds to miraculously tie Yale 29-29. The following day, the Harvard Crimson student newspaper ran the now famous headline “Harvard Beats Yale 29-29.” I could not help but recall the game and the headline as I surveyed the scene around the hotel lobby at the recent annual ISRI Commodities Roundtable Forum...

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Brazilian mining giant Vale gears up for ‘in-house’ diversification, possible acquisitions

Speculation has mounted in recent weeks on possible plans by Brazilian mining company Vale’s new CEO Fabio Schvartsman to diversify and make new acquisitions. New strategic partnerships are in theory ruled out because Vale is big enough “to set its own, even more ambitious goals,” according to the new CEO. New developments may be known on October 18, the date of Vale’s next general shareholders’ assembly, when a “diagnostic report” on the...

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Regionality returns as China’s steel exports juggernaut slows

China’s steel export juggernaut has decelerated, with the country’s innumerable steelmakers focusing on local demand and lapping up domestic margins that have perhaps never been stronger. The result of this increased focus on internal demand has meant relief for steelmaking nations that, prior to 2014, were price makers globally and in their own regions. Turkey is becoming a regional bellwether once more for long products; Russia can set the tone again in the Baltic and Black Seas for...

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China’s ferrous futures market gains local stardom

Lately in China it’s been the Kentucky Derby, the Grand National and the Dubai World Cup all rolled into one. Except, it’s not stallions but sinter feed that has been the star turn—not well-reared horses but reinforcing bar the center of attention. Picture this: after a lunch with market sources in Shanghai, you and your colleague are discussing metals and coal, when you suddenly hear in the background someone else talking about rebar; not just rebar, but hikes in margin requirements to trade...

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