Friday , September 20 2019
Home / Tag Archives: steel

Tag Archives: steel

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,...

Read More »

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...

Read More »

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...

Read More »

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...

Read More »

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...

Read More »

Scrap-iron ore price link weakened by trade tensions, Turkish downturn

The traditionally strong correlation between ferrous scrap and iron ore has been eroded by global trade upheavals and economic troubles in Turkey, the largest import market for steel scrap. Previously, the relationship between ferrous scrap and iron ore prices often meant price movement in one would lead to a corresponding price change in the other – with market participants trading on this correlation. Between 2014 and 2016, the relationship between iron ore CFR China and heavy melting 1/2...

Read More »

Commodity tracker: 5 charts to watch this week

S&P Global Platts editors’ pick of unfolding commodities trends. This week, tight US gasoline supply incentivizes imports, high-tech industries drive tin demand and Iranian oil exports hit new low. Plus impacts of Europe’s heatwave and China key economic data on energy and commodities. 1. US gasoline output curbs driving NYMEX RBOB backwardation   What’s happening? RBOB gasoline structure has firmed in recent weeks amid refinery issues on the US Atlantic Coast that are...

Read More »

Iron ore’s latest rally comes despite improved supply picture

Iron ore, the “red dirt” that is the key ingredient for the manufacture of steel, is attracting significant interest again, both internationally and within China. Its price has just seen one of its sharpest ever rallies, almost doubling in value over seven months to hit $126.35/mt on July 3, responding to a confluence of supply and demand-side factors. While the price seems to have subsided in recent days, the intensity of the jump has surprised many, who say that the market has effectively...

Read More »

Energy and commodity highlights: Tropical storm Barry, UK-Iran tanker spat, Asian LNG demand

As Tropical Storm Barry approaches the US Gulf Coast, offshore oil and gas producers, refineries and ports have been shuttering facilities in preparation. Utilities are also on alert. As of July 11, US offshore drillers have shut 1 million b/d (53%) of Gulf of Mexico oil production and 1.2 Bcf/d (45%) of natural gas output. The US National Hurricane Center expects Barry to reach hurricane strength late July 12, or early the next day, and make landfall in Louisiana. The storm could slow US...

Read More »

Steel prices squashed as auto demand and output go into reverse

Almost everywhere you look, auto production and sales are falling and putting pressure on one of the major end-user segments of steel. News within the space of a fortnight that British Steel was insolvent and Ford’s Bridgend plant in the UK would cease production in 2020 was somewhat emblematic of the challenges faced by carmakers and their steel suppliers. According to the World Steel Association, a typical car comprises around 900 kg of steel, 34% of which is used in the body structure and...

Read More »