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What happened in the American steel market last week?

According to the analysis of the steel markets in the United States, Brazil, and Australia last week...

What happened in the American steel market last week?

The USA;

  • At the beginning of last week, US pig iron prices were reported at $445.00, HMS1 scrap at $395.00 and HMS1/2 80:20 scrap at $375.00.
  • US HDG prices rose $20/short ton (st) to $880/st, while CRC prices fell $20/st to $860/st ex-mill. 
  • The US Congress approved a short-term spending bill to fund federal operations until November 17, preventing a government shutdown. The House of Representatives and the Senate extended the authority of the Federal Aviation Administration for three months with a vote of 88-9.
  • In August, US slab imports saw a monthly decrease of 34% and an annual decrease of 25%, reaching approximately 207,000 tons.
  • In July 2023, US steel companies imported 119.6,000 tons of pig iron from Ukraine, up by 40.2% m/m. The supply of raw materials increased 4.7 times compared to July last year. In the January-July period, American metallurgists' consumption of Ukrainian pig iron increased 2.3 times y-o-y to 748.4 thousand tons.
  • US crude steel production experienced a slight weekly decrease of 0.7% but showed a 2.3% annual increase, reaching 1,722,000 tons. During this period, the capacity utilization rate was 75.7%.
  • US imports of HRC increased by 16.9% on a monthly basis but decreased by 17.2% on an annual basis, reaching approximately 156,000 tons. US imports of CRC decreased by 15% on a monthly basis and 31% on an annual basis, totaling approximately 98,000 tons.
  • Nucor Steel announced its plate prices. Nucor kept factory prices for plates with thicknesses between 0.375-2 inches and widths between 72-120 inches at $1,530 per short ton. Plates with thicknesses between 2.25-3 inches were priced at $1,570 per short ton.

Brazil;

  • At the beginning of last week, Brazil's slab prices were $550.00, and the pig iron price was $413.00
  • According to the statistics of the National Union of Iron and Basic Metals Industries (Sinferbase), Vale's iron ore exports in July increased by 2.2% on a monthly basis and 1.8% on an annual basis, reaching approximately 22.7 million tons.
  • Brazilian steel producers are calling for an increase in import tariffs on Chinese steel products to 25% to protect their domestic industries. The country is combating a surge in Chinese steel imports, which increased by 49.5% to 3.2 million tons in the first eight months of this year compared to the same period last year.
  • Brazilian mining and metals company Gerdau announced the suspension of production at its Maracanaú metallurgy facility. Following the closure of the production facilities, 600 factory workers who had been on temporary suspension since July were left unemployed.
  • ArcelorMittal Brazil announced plans to reduce rolled steel production by 1.3 million tons in 2023 in response to a significant increase in rolled steel imports to the country. This reduction will affect all sections of the company, with the Tubarao plant, the largest steel producer in the country, reducing slab production by approximately 20% and flat product production by 10%.The decision to make these cuts stems from a significant amount of steel imports to Brazil and reluctance from trade officials to impose a 25% import tax on all steel products.

Australia;

  • Australia's coking coal price started the previous week at $325.00.
  • The Australian government has predicted a gradual decline in iron ore prices due to weakening global demand. According to the latest quarterly Resources and Energy report from the Department of Industry, it is expected that spot prices for 62% Fe fine iron ore will average around $100 per ton in 2023. By 2025, the benchmark iron ore price is expected to drop to an average of $76 per ton.
  • In August, Australia's iron ore exports increased by 4.9% compared to the previous month and 4.6% compared to the same month last year, reaching a total of 76.7 million tons.

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