Looking at country-specific developments;
Brazil;
In July this year, Brazil's pig iron exports rose to 379,000 tons.
According to the Brazilian Association of Automotive Vehicle Manufacturers (Anfavea), Brazil's automobile production decreased by 16.4% to 183,000 in July this year compared to June. Sales, on the other hand, increased by 24% compared to the previous month to 226,000. Exports fell by 27.6% y-o-y to around 30,000 vehicles.
The Brazilian steel market remained flat during the week. Pig iron price started the week flat at $404.00, slab price at $610.00 and iron ore price at 160.39.
USA;
US rebar imports reached 193,000 tons in June, up by 172% m-o-m and 94% y-o-y. Algeria ranked first with 94,000 tons, up by 165% m-o-m and 165% y-o-y. Other major import sources included Egypt, Turkey and Mexico.
US crude steel production fell by 1.3% in the week ended August 5, but increased by 0.4% yoy. Capacity utilization rate was realized as 75.9%, down by 1.0% on a weekly basis and 2.4% on an annual basis.
In June this year, US steel coil imports amounted to 126,000 tons, increasing by 6.6% on a monthly basis and decreasing by 21% on an annual basis.
US hot-dip galvanized (HDG) prices remained flat this week, while cold rolled coil (CRC) prices fell. The ex-works US HDG price was $980/short ton (st), while the CRC price fell by $40/st to $1,020/st. US hot rolled coil (HRC) prices, on the other hand, were flat amid limited deals and offers. Domestic US HRC Midwest and Southern were flat at $820/short ton (st), down 32pc since a peak of $1,200/st in April.
US steel exports in June fell 1.4% m-o-m to 817,691 tons. Exports to Canada accounted for the largest share. At the same time, US steelmakers shipped 7.7 million net tons, rising slightly by 0.6% y-o-y but decreasing by 0.9% m-o-m.
The US steel market was volatile. Scrap >> HMS1 started the week at $360.00, Scrap >> HMS 1/2 (80:20) at $352.00, pig iron at $430.00 and iron ore at $104.73.
Demand for electrical steel is expected to exceed supply in the US as there is a shortage of non-grain oriented electrical steels (NGOES) needed for electric vehicle (EV) batteries. This shortage is due to insufficient domestic production of these value-added steels to meet future demand. Cleveland-Cliffs, the only supplier of automotive-grade silicon steels in North America, has invested $30 million in its Zanesville, Ohio mill to add 70,000 short tons to the steelmaker's non-oriented silicon steels (NOES) capacity by the end of 2023.
Australia;
Australian steel prices started the week with ups and downs. The coke price started the week slightly higher at $241.00, while the iron ore price was $104.73 at the start of the week.
Looking at company-based developments;
Australia's Orrcon Steel will build a pipe mill and the equipment will be supplied by US engineering group Fives in cooperation with Australian company ProTube Engineering.
Nucor Corp. has received permission from the US Army Corps of Engineers to build a 3 million tons/year plant in Mason County, West Virginia. The plant, costing $3.1 billion, will produce high-tech automotive and construction-grade flat steel. At the same time, Nucor Corporation signed a Power Purchase Agreement (PPA) with NextEra Energy Resources to support solar energy development in Kentucky. The two-phase solar project, Sebree Solar, will have up to 400 megawatts of U.S.-generated energy capacity and will begin construction in the fall of 2023.
Ternium announced a 4.3% increase in Mexican steel consumption in 2023, compared to a 2.5% increase in April. Canacero reported steel consumption of 28.1 million tons in 2022, accounting for 66% of the Mexican manufacturing industry's demand for sheet metal.
Australian nickel producer Nickel Industries has announced plans to sell 20% of its shares to raise funds for development. The deal will help the company raise around $620 million, but shareholder approval is required.
Orrcon Steel has commissioned Fives, a leading engineering group, to design, manufacture and supply a complete OTO tube mill in Unanderra, Australia. The plant will produce high-quality tubes and profiles for residential, industrial and commercial buildings, as well as structural and architectural elements with strong aesthetic and geometric advantages. Fives, together with its regional partner ProTube Engineering, will provide Orrcon Steel with a complete line of OTO tube mills, from roll loading to an automated packaging system for 10-inch diameter steel tubes. The project aims to achieve green production certification for pipes produced through regenerative systems and energy-efficient motors.
Grupo Acerero plans to invest $350-400 million in a new mini-factory in San Luis Potosi, Mexico, with a capacity of 1 million tons of steel per year. The project, called Beskar, will integrate the company's existing facilities.
BlueScope Steel has announced a $270 million investment to expand metal coating capacity at its Erskine Park project in New South Wales. The new line will produce up to 240 kilo-tonnes per year of the company's metal-coated products.
Extra;
The U.S. Department of Commerce has established a preliminary dumping rate of 0% for South Korea's NEXTEEL Co., Ltd. for selling heavy-walled rectangular welded carbon steel pipe and tube at regular value prices from September 1, 2021 to August 31, 2022.
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