Steelonthenet blog

Steel industry comment and analysis

5 year steel price forecasts

We now offer five year steel price forecasts for sale to site visitors at Steelonthenet.com. These projections – derived from an econometric model – are available for purchase and cover ferrous scrap, billet, slab, HRC, CRC, HDG, organic coated sheet and rebar.

For further infomration, please visit https://www.steelonthenet.com/price-forecasts.html.

blogger@steelonthenet.com

 

 

 

Latest world steel news

For latest world steel news, visit http://bit.do/steel-news. Annual subscriptions start at just $120 / year and cover carbon steel news and / or specialty steel news (engineering steel, stainless steel and tool steel news).

World steel prices 2018

There is a good relationship between global capacity utilisation and steel price levels. The chart below describes this.

steel industry capacity utilisation versus steel price level

According to the World Steel Association, global capacity utilisation has increased from 69.4% in December 2017 to 76.9% in April 2018. For report, visit https://www.worldsteel.org/media-centre/press-releases/2018/april-2018-crude-steel-production.html.

Therefore, our expectation is that steel prices should be increasing soon – with the world hot rolled coil and rebar price attaining a price level some $150/tonne better than last December.

To track global steel prices, visit our world steel prices page.

Steel industry suppliers – pig iron

Our analysts have put together a steel industry suppliers page. This identifies steel associations, consultants, distributors, electrode suppliers, equipment supply firms, ferroalloy suppliers, pig iron suppliers etc.

Under pig iron suppliers, we list the following firms.

Alterosa: https://www.steelonthenet.com/directory/pig-iron/alterosa.html

Donetsksteel: https://www.steelonthenet.com/directory/pig-iron/donetsksteel.html

Indoferro: https://www.steelonthenet.com/directory/pig-iron/indoferro.html

Metalsider: https://www.steelonthenet.com/directory/pig-iron/metalsider.html

Sesa Goa: https://www.steelonthenet.com/directory/pig-iron/sesa-goa.html

Techenergoprom: https://www.steelonthenet.com/directory/pig-iron/techenergoprom.html

Tulachermet: https://www.steelonthenet.com/directory/pig-iron/tulachermet.html

For full list of several hundred firms, visit https://www.steelonthenet.com/suppliers.html or to see a map of the various locations worldwide see https://www.steelonthenet.com/supplier-map.html.

 

UK Government report – opportunities in UK Steel

An excellent report published end-2017 by the UK Government’s Department of Business Energy and Industrial Strategy identified a number of different market opportunities for the UK steel sector. For full report, see
https://www.gov.uk/government/publications/uk-steel-industry-future-market-opportunities.

Some months on, has there been any progress at all with the recommendations made? Or will this BEIS report (like the Action Plans issued by the European Commission in recent years) be yet another adornment on some government shelf? 

If site visitor are aware of any progress made, please let us know.

Dr Andrzej M Kotas, CEO, Steelonthenet.com

 

 

Steel industry expert witness service

Metals Consulting International – the parent of Steelonthenet.com – has just launched a new steel industry expert witness support service.

Steelexpertwitness.com offers industry clients professional technical and commercial expert support relating to iron and steel sector disputes. This experience includes all areas of steel production, including raw material preparation, ironmaking, liquid steelmaking, casting and rolling. Our capabilities also cover commercial disputes and arbitrations concerning pricing, delivery terms, transport, contract performance and product valuation for insurance or compensation purposes. Our experts also have a good understanding of the obligations that are normally expected of the expert witness role.

For further information please visit our new website at http://www.steelexpertwitness.com or call +44 775 149 0885.

Steel industry discussion board

The Steelonthenet.com team have just launched a FREE iron and steel industry discussion board. Site visitors can post company news and event information, classified ads, job search, technical queries and other messages relating to steel, at their convenience.

Their is no charge for this service. All that is required is a quick and simple user registration.

Please visit us to try out the new steel message board which may be found at http://forum.steelonthenet.com/

Website Administrator

 

Prospects for the Steel Industry in the USA – ISSB perspective

Note – the passage below was written by the steel team at ISSB (Iron & Steel Statistics Bureau, UK) in January 2017.

It is fair to say that the past year has been one of changing fortunes for the global steel industry in general and for the US steel industry in particular. Although US demand for steel in the first half of the year was fairly subdued, a strong raft of anti-dumping legislation implemented in the latter part of 2015 meant domestic steelmakers enjoyed added protection. Crude steel production in the first half of 2016 was stable year on year compared with import levels which were 28% lower.
The subsequent increase in domestic steel prices once again led buyers to search out value from overseas sources resulting in Q3 import levels being substantially higher, although still 2% below Q3 the previous year, and domestic production falling by 4%. This trend continued into October with production down nearly 5% year on year but early indications show that the general election result may have helped to halt this decline.
The surprise election of Donald Trump could have a profound effect on the way that the US trades with the rest of the world. Trump appears to favour a more aggressive trade policy, regularly citing job losses as a result of imports from other countries, especially China. As the US is already agile in its application of anti-dumping legislation when necessary, it seems likely that US policy going forward will be geared even further towards protecting domestic interests.
The recent high profile case of Ford cancelling its proposed Mexican production plant in favour of one in the US after continued criticism from Trump along with the president-elect already suggesting taxes will be imposed on imported vehicles suggest in the short term at least that US demand for steel looks set to improve and given Trump’s rhetoric, this growth is very likely to be supplied by domestic producers.
The long term effect of these protectionist policies is rather more uncertain but in November, the month of the election, US steel production increased by over 6% year on year, the first growth since May. Going forward, the Australian Department of Industry is now predicting US steel production to grow by 6% this year and a further 13% in 2018 compared to the pre-election forecasts of 3% and 7% respectively.
It is just over a week before president-elect Donald Trump takes up his position in the White House and whilst the next five years are very likely to herald a much more protectionist stance to international trade for the US, aiding domestic steel producers in the short term, the long term consequence of this on the global steel industry and steel prices in particular is much more difficult to assess. In the short term imports are likely to be at reduced levels, adding to the quantities of surplus steel on the international market with the commensurate downward pressure on prices. Longer term trade restrictions are unlikely to lead to long-term prosperity with innovation and competitiveness on the global market likely to suffer.
For further information on this topic (particularly trade volumes) please visit ISSB or for other perspectives visit our steel industry news and information portal.

World steel prices

The Steelonthenet.com team has just updated their steel prices page. Average monthly world steel prices since January 2001 are now accessible online on their steel prices page and cover HRC, CRC, HDG, tinplate, organic coated sheet and steel rebar. The price data is fob export prices in US $ per metric tonne.

For further information visit http://www.steelonthenet.com/steel-prices.html.

 

SBQ Steel News

For the latest engineering steel news – SBQ steel news – see our special steels newsfeed at SBQ steel news.