Global steel price hikes due to soaring coking coal price. The result is that soaring coking coal price has impacted margins, so that many global steel producers are suffering although steel price has climbed this year.
To help steady price, China reduced its regulations on coking coal producers recently. While global steel producers are still feeling the pinch.
Why U.S. steel price can rise well into 2017?
China’s price of flat steel products has fallen in the range of 20-30% since the peak in the summer. However, there are some reasons to believe U.S. steel price is set to rebound:
Rising Chinese steel price is one of the reasons. Chinese demand from auto sector (a key industry for steel demand) has been robust this year. So has its infrastructure and construction.
Have Chinese steel capacity cuts eyed 2016 target?
As is known, China, which produces half of the world’s steel output, pledged to cut excess steel capacity by 45 million tonnes by the end of this year a few months ago.
Trump won his presidential election on Wednesday; meanwhile, American steel companies are some of the biggest winners following the news.
American steel shares rose on hopes that a Trump led government would boost domestic infrastructure spending and institute more measures to protect domestic steel producers at the same time.
Chinese iron ore futures on Friday rose to their strongest point in more than two years, reflecting firm demand for the steelmaking raw material as steel price stretched gains to hit their highest since April.
Spot iron ore price, helped by rising futures and increased appetite for high-grade ore, also extended their rally to over six-month peaks and were on course for their fourth week of gains. For the week, the spot price has so far risen 2.2%.
Why Russian steelmaker exports Chinese cold-rolled steel, but not domestic steel to European Union? Because EU anti-dumping duties on the Chinese product are much lower.
According to official PMI (Purchasing Managers’ Index) data, Chinese steel futures extended gains on Tuesday after the manufacturing sector expanded in October at its fastest pace in more than two years. It is also because steelmaking raw material price remained strong amid tight supply.
Will Tata Steel abandon its plan to seek partner on European steel assets?
As is known, following heavy losses linked to low demand in the region and a flood of cheap Chinese imports, Tata Steel in March decided to put its British steel operations on sale.
However, in July, due to uncertainty over Britain's vote to leave the EU, the process was suspended.
China has exceeded 2016 target for steel capacity cuts? The answer is “No? Yes?” You are likely to find the answer.
Will China hit its 2016 target for crude steel capacity cuts by late October, with additional reductions expected in the last two months of the year? The answer is “Maybe.”
Is there a Renaissance in global steel industry?
The global steel industry is on the mend, at least for now. China’s Baoshan Iron & Steel Co. has kicked off the earnings season for the quarter to September by reporting a jump in profit that’ll probably presage similar figures from producers in Asia, Europe and the U.S.
British Steel Pension Scheme is a major obstacle between Tata Steel and ThyssenKrupp?
The answer is that the pension scheme is seen as a major obstacle to a possible joint venture deal between Tata Steel, British Steel’s principal sponsoring employer, and Germany's ThyssenKrupp to manage Tata's remaining UK operations. Tata Steel inherited the pension scheme when it bought Corus, formerly British Steel, for $12 billion in 2007.
Chinese steel mills are becoming cleaner every month because the government pushes them to cut excess capacity in its steel sector. How about the result? They are not getting any leaner.
It is worth to note that China is the world’s top producer in many fields, including steel. The country’s steel output has risen year-on-year for the past seven months despite efforts to step up environmental checks and curb excess capacity.
Will Chinese Group invest $700 million in a stainless steel plant in Philippines? Perhaps.
According to the Chinese Group (state-owned Baiyin Nonferrous Group Co.), as part of a wider push to boost trade and economic ties between China and Philippines, it has agreed to consider setting up a stainless steel plant in this country that could cost as much as $700 million.
Great Lakes steel output declined from 666,000 tons a week earlier to 656,000 tons last week, down 1.5 percent.
Much of the raw steel production in the Great Lakes region takes place in Lake and Porter counties in Indiana.
Production in the Southern District, which spans mini-mills across the South, increased to 511,000 tons last week, down from 495,000 tons the previous week, a 3.2 per cent gain.