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Tag Archives: steel

Commodity Tracker: 7 charts to watch this week

LNG breaks new records either side of the Atlantic in this week’s pick of energy and commodities trends from S&P Global Platts editors. Plus: US crude imports and refining, German power price dynamics and more. 1. US LNG feedgas demand hits new single-day high…   What’s happening? US LNG feedgas demand is trending near record-high levels again this month as production at both Freeport LNG and Elba Island continue to ramp up. In October, demand from the six US LNG export...

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China Macro and Metals: Steel exporters target China amid warmer economic signals

In a new monthly post, S&P Global Platts analyzes China’s key economic indicators, and what they mean for the metals sector. Chinese commodity prices softened over September and into the first half of October, while economic data was mixed over the same period. But compared to other global markets, China is doing pretty well. This was evidenced by countries including South Korea, Russia and India all targeting China with steel due to a lack of buyers elsewhere. Chinese domestic prices...

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Commodity Tracker: 6 charts to watch this week

China’s latest economic data continues to paint a subdued picture for commodity and energy demand, while lower drilling counts in the US raise questions about the pace of future supply growth. S&P Global Platts editors shed light on these and other trends, including a Nordic wind power boom, US-Turkey steel trade, and more.   1. China and commodities: a tale of two inflations   What’s happening? China’s consumer price index (CPI), released last week, hit a nearly 6 year high, as...

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Commodity Tracker: 6 charts to watch this week

A new production record for Permian basin gas, and rising transport costs for crude oil into Asia, are top of S&P Global Platts editors’ picks this week. Plus: EU renewables output, Egypt’s return to abundant natural gas supply, a US power price spike, and the squeeze on European steel mill margins. 1. Gas pipeline start-up helps Permian output to new highs   What’s happening? Gas production in the Permian Basin of West Texas edged up to a record high in late September,...

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China waste policy could make or break the global ferrous scrap market

China’s recent battle against waste imports into the country has proved a success, as August ferrous scrap imports fell to zero, a figure unseen for the past 20 years in the country, according to the latest customs figures. Since late December 2018, China has been slowly isolating itself from the global scrap market. The restrictions on ferrous scrap imports are part of a pushback against the country’s prior, unwanted, role as a dumping ground for global waste. But regional industry...

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Commodity Tracker: 6 charts to watch this week

Geopolitical risk and oil markets top this week’s pick of energy and commodities themes from S&P Global Platts editors. Plus, Ukraine’s role in European gas supply, steel scrap prices as a bellwether for economies, and a milestone approaches for US LNG exports. 1. Global oil markets on alert after attacks on Saudi oil facilities   Click for full-size infographic What’s happening? Attacks on Saudi Arabian oil facilities at Abaiq and the kingdom’s second-largest oil field,...

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Ferrous scrap plays catch up after steel’s dramatic tumble

Ferrous scrap prices have crashed over the past five weeks, finally coming more in line with weakened steel prices, which have fallen by a larger magnitude since the middle of 2018. Using CFR Turkey scrap as a gauge, spot prices of HMS I/II 80:20 have fallen $136.5/mt from their peak in March 2018 as of September 12. Over the same period, rebar prices on an FOB Turkey basis have fallen by a larger $172.5/mt, S&P Global Platts data show. While in percentage terms, prices of scrap have...

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China steel, refining capacity rises as supply-side reforms come under pressure

China’s supply-side reform agenda was launched by President Xi Jinping in late 2015 with a view to stripping out excess capacity that had built up in key industries during China’s emergence as an economic power. Industries targeted in a five-year plan presented in 2016 by the country’s top economic planner, the National Development and Reform Commission, included steel, coal, cement and aluminum. These sectors were deemed to have become too big, too polluting, and in some cases too dependent...

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Commodity Tracker: 6 charts to watch this week

Globalization of natural gas markets, OPEC’s struggle to balance oil supply and price, and platinum coming to the fore as an investment vehicle are all covered in this week’s selection of essential charts from S&P Global Platts editors. 1. Global gas price differentials keep tightening…   What’s happening? Gas spot prices across regions have converged in recent weeks due to the continued gas glut in an increasingly globalized gas market, with surplus LNG cargoes...

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Sluggish global steel demand pressures iron ore, met coal prices

Global steel mill margins have shrunk in 2019, in turn pushing down iron ore and coke consumption and prices for coking coal. In 2018 Platts benchmark US hot rolled coil (HRC) spot prices exceeded $1000/mt delivered Midwest for the first time since 2008, and the sustained run in steel pricing and demand since 2016 delivered high profits for steel producers.   High global steel prices last year have quickly been forgotten, as offtake from steel buyers in the US and Europe reduced into...

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