Looking at country-by-country developments;
Australia;
In July this year, Australia Port Hedland's iron ore exports amounted to around 43.74 million tons, down by 15.8% compared to June and 6.8% compared to July 2022.
Steel prices rose in Australia. Coking coal and iron ore prices were at $256.00 and $106.48, respectively.
Brazil;
Brazil's steel institute IABr requested a meeting with Brazil's development and industry ministers to discuss urgent measures to reduce the 78% increase in steel imports in July.
Slab prices started the week flat at $580.00 and pig iron at $404.00, while iron ore prices rose to $169.65.
USA;
The US HMS 1/2 (80:20) scrap price increased to $370.00, while the HMS1 scrap price was flat this week at $360.00. Iron ore prices started the week at $106.48.
HDG prices fell by $20/st to $940/short ton (st), while CRC prices fell by $20/st to $980/st. HRC prices fell by $30/st to $760/st. Repeatable HDG offers ranged between $920-950/st, with one Midwest mill offering these prices after weeks of offering high prices. Lead times for US HDG producers increased from 7-8 weeks to eight weeks, while CRC lead times remained steady at 7-8 weeks.
US exports of thick steel plate increased by 35.3% on a monthly basis and 14.5% on an annual basis to 107,279 tons in June. The value of exports in this period was realized as 170.8 million dollars. Rebar exports, on the other hand, decreased by 20% on a monthly basis and 26% on an annual basis to around 19,000 tons.
The US canceled its tariffs on Korean hot-rolled steel. The results of the investigation showed that between October 2021 and September 2022, Korean companies did not supply these products to the US at artificially low prices.
In the week ended August 19, US crude steel production increased by 1.1% on a weekly basis and 2.2% on an annual basis to 1.76 million net tons.
The US imported around 66,000 tons of cut to length plate (CTL) in June, up 13% m-o-m and 68% y-o-y. Meanwhile, crude oil stocks fell by Bl 6.1 million last week to Bl 433.5 million, the lowest level of the year. This decline brought crude oil stocks to the lowest level since December 30, when 420.6 million barrels were recorded.
The US Department of Commerce decided to extend countervailing duties on carbon and alloy steel wire rod imports from Turkey. The tariff rate was set at 6.09% and 3.81% for Habaş and İçdaş, respectively, and 4.95% for all other Turkish wire rod suppliers.
In June this year, US exports of oilfield tubular products (OCTG) increased by 29% on a monthly basis and 11% on an annual basis to 21,200 tons.
In June this year, US exports of cold-finished bar increased by 3.1% mom and decreased by 10.8% yoy to 12,873 mt.
Looking at company-based developments;
US Steel and rival Cleveland-Cliffs are arguing over technical issues in the company's labor contract with the United Steelworkers (USW) following a dispute over a takeover bid. Cliffs has argued that the USW's labor contract gives the union "de facto veto power" over any deal, which would trump competing offers if Cliffs decides to sell US Steel. However, US Steel disagreed with this characterization, stating that the labor agreement only provides succession rights and the right to bid, not the right to veto any transaction.
BHP has raised its thermal coal production in the 2022-23 financial year by 3pc year-on-year to 14.2mn tons. This growth was supported by a 21pc quarter-on-quarter increase in the April-June period due to a shift from high-grade to low-grade coal sales, drier weather and increased truck productivity. However, total coal sales fell to 13.86 million tons in 2022-23 from 14.12 million tons a year earlier, as BHP replenished its stockpiles following weather-disrupted mining operations in early 2022.
Fortescue is set to begin construction of its US$2 billion ($3.1 billion) Australian iron ore mine and rail project within three years.
Cleveland-Cliffs invited U.S. Steel to disclose all bids received. U.S. Steel rejected Cliffs' $7.3 billion cash and stock offer as insufficient and is investigating multiple unsolicited offers.
Rio Tinto and the government of Madagascar agreed on future financial arrangements to support the sustainable operation of the QIT Madagascar Minerals (QMM) mine.
Chichester Metals, a subsidiary of Australia's Fortescue Metals Group (FMG), has applied for approval to build a new iron ore mine in Western Australia.
Australian South32 workers will continue their strike until September 1 due to a lack of agreement on leave provisions and wages. South32 will continue to suspend parts of the Appin mine operation, but no significant impact has been observed so far. The negotiation process has lasted more than eight months and workers are seeking government help to resolve the dispute.
Brazilian steelmaker CSN is considering expanding its operations in the North American market, but will not bid to buy US Steel. Chief executive officer Benjamin Steinbruch said the company is not interested in the US Steel market and is focused on diversifying its US business through smaller acquisitions.
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