Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Steel Q1 Looks Brighter

Published 01/31/2013, 04:19 PM
Updated 07/09/2023, 06:31 AM

U.S. Steel Corp. (X) outlined its earnings earlier this week, while providing a few nuggets on the steel company’s outlook for Q1 2013.

Some Takeaways:

  • According to company spokesmen, steel buyers are continuing to exhibit caution early in this year, and they suggest that early spot demand is healthy; average spot prices will be higher than in the fourth quarter, but this will take time.
  • USS expects raw material costs -- coking coal, etc. -- to be lower for their flat-rolled steel operations in the upcoming year. Coal costs should, on average, come out to be 20% less over the course of the year compared to 2012.
  • In terms of a flat-rolled market demand outlook: Automotive -- 2012 NAFTA vehicle production was up 18% year over year; 15.5 to 15.7 million units are projected to be produced in 2013. Appliances -- not as good (Q4 appliance unit shipments down 1% versus 2011; full year shipments 2% lower in 2012; producers have been rather mum on 2013 outlook, although it’s been reported that Whirlpool, for one, sees ”an improving U.S. housing market and sales growth opportunities in developing overseas markets [as] providing momentum for a recovery.” Construction -- U.S. residential market, i.e. housing starts, looking up in 2013.
The biggest mover on the weekly Raw Steels MMI® was the steel billet cash price, which saw a 7.8% decline on the LME to $260.00 per metric ton. This comes on the heels of a 0.7% increase the week before.
The three-month price of steel billet fell to $265.00 per metric ton on the LME, a 7% change from the prior week.

For the third week in a row, the spot price of the U.S. HRC futures contract dropped, falling 1.4% to $624.00 per short ton. The three-month price of the U.S. HRC futures contract rose 0.5% to $648.00 per short ton after falling 0.8% during the previous week.

The week finished with no movement for U.S. shredded scrap.

Chinese steel
prices were mixed for the week. The high and low price of iron ore 58% fines from India were down just slightly. The price of Chinese slab rose 1% after falling 0.5% during the previous week.

Closing out the third week of rising prices, the price of Chinese HRC also increased by 1%. Chinese coking coal traded sideways last week.

Korean steel prices were mixed for the week. The price of Korean steel scrap fell 4.1% after rising 4.3% the week before. Prices for Korean pig iron remained constant, however.

The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.