steel industry update #269

8/3/2019 Steel Industry Update #269

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Email: [email protected] | Website: www.lockerassociates.com

Steel Industry Update/269 December 2011Locker Associates, 225 Broadway, Suite 2625 New York NY 10007 Tel: 212-962-2980

Table 1: Selected U.S. Steel Industry Data, October & Year-to-Date, 2011

Month of October Year-to-Date

(000 net tons) 2011 2010 % Chg 2011 2010 % Chg

Raw Steel Production ............... 7,888 7,212 9.4% 79,235 74,328 6.6%

Capacity Utilization ................. 71.9 67.3 -- 74.5 70.8 --

Mill Shipments .......................... 7,934 6,629 19.7% 76,375 69,784 9.4%

Exports ..................................... 1,151 995 15.7% 11,023 10,059 9.6%

Total Imports ............................. 2,340 1,888 23.9% 24,331 20,271 20.0%

Finished Steel Imports ............ 1,898 1,585 19.7% 18,607 15,855 17.4%

Apparent Steel Supply*............. 8,681 7,220 20.2% 83,959 75,579 11.1%

Imports as % of Supply* ......... 21.9 22.0 -- 22.2 21.0 --

Average Spot Price** ($/ton)...... $810 $661 22.4% $883 $704 25.4%

Scrap Price# ($/gross ton) .......... $440 $339 29.8% $440 $342 28.7%

Sources: AISI, SteelBenchmarker *Excl semi-finished imports **Avg price of 4 carbon products #shredded scrap

Table 2: U.S. Spot Prices for Selected Steel Products, December & Year-to-Date, 2011

Month of December Year-to-Date

($ per net ton) 2011 2010 % Chg 2011 2010 % Chg

Hot Rolled Band.... $686 $682 0.6% $755 $619 21.9%

Cold Rolled Coil....... 788 781 0.9% 853 725 17.5%

Coiled Plate.................. 905 810 11.7% 994 770 29.0%

Average Spot Price.... $793 $758 4.7% $867 $705 23.0%

OCTG (J55-SML)... $2,023 $1,769 14.4% 41,920 1,748 9.9%

#1 Heavy Melt... $398 $327 21.7% $399 $316 26.3%

Shredded Scrap... 434 354 22.6% 437 348 25.7%#1 Busheling. 475 388 22.4% 473 410 15.5%

Sources: World Steel Dynamis SteelBenchmarker, Spears & Associates, 12/11


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Steel Industry Update/269

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Table 3: World Crude Steel Production, October & Year-to-Date, 2011

(000 metric tons) Month of October Year-to-Date

Region 2011 2010 % Chg 2011 2010 % Chg

European Union. 15,273 15,440 -1.1% 150,781 145,505 3.6%

Other Europe. 3,326 3,004 10.7% 30,744 26,157 17.5%

C.I.S. 9,685 9,236 4.9% 94,141 89,423 5.3%

North America 10,014 9,101 10.0% 99,086 93,226 6.3%South America... 4,092 4,053 1.0% 40,997 36,756 11.5%

Africa... 1,206 1,382 -12.8% 11,677 13,707 -14.8%

Middle East. 1,715 1,651 3.9% 16,995 15,702 8.2%

Asia.. 78,039 72,160 8.1% 806,668 735,630 9.7%

Oceania...... 630 694 -9.2% 6,547 6,817 -4.0%

Total 123,979 116,721 6.2% 1,257,636 1,162,923 8.1%

Country

China....... 54,673 49,856 9.7% 580,787 522,964 11.1%

Japan... 9,480 9,506 -0.3% 90,502 91,439 1.0%

United States.. 7,294 6,543 11.5% 72,020 67,429 6.8%

India(e). 6,150 5,887 4.5% 60,056 57,066 5.2%South Korea 6,086 5,167 17.8% 56,712 47,861 18.5%

Russia(e)...... 5,915 5,654 4.6% 57,453 55,382 3.7%

Germany.. 3,685 3,845 -4.2% 37,813 36,813 2.7%

Turkey..... 3,084 2,747 12.3% 28,142 23,826 18.1%

Ukraine(e).... 3,070 2,939 4.5% 29,616 27,554 7.5%

Brazil 2,891 2,972 -2.7% 29,732 27,856 6.7%

All Others.... 21,651 21,605 0.2% 214,803 204,733 4.9%

Source: World Steel Association, 12/11; e=estimate

Source: World Steel Association, 12/11; in million metric tons

Graph 1: World Crude Steel Production


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Table 4: Top 20 Crude Steel Producing Countries, October & YTD 2011

Rank Country Oct '11 Oct '10 % Chg YTD '11 YTD '10 % Chg

1 China 54,673 49,856 9.7% 580,787 522,964 11.1%

2 Japan 9,480 9,506 -0.3% 90,502 91,439 -1.0%

3 US 7,294 6,543 11.5% 72,020 67,429 6.8%

4 India 6,150 5,887 4.5% 60,056 57,066 5.2%

5 South Korea 6,086 5,167 17.8% 56,712 47,861 18.5%

6 Russia 5,915 5,654 4.6% 57,453 55,382 3.7%

7 Germany 3,685 3,845 -4.2% 37,813 36,813 2.7%

8 Turkey 3,084 2,747 12.3% 28,142 23,826 18.1%

9 Ukraine 3,070 2,939 4.5% 29,616 27,554 7.5%

10 Brazil 2,891 2,972 -2.7% 29,732 27,856 6.7%

11 Italy 2,700 2,464 9.6% 24,037 21,564 11.5%

12 Taiwan 1,650 1,744 -5.4% 18,611 16,299 14.2%

13 Mexico 1,540 1,462 5.3% 15,076 13,919 8.3%

14 France 1,412 1,374 2.8% 13,325 12,999 2.5%

15 Spain 1,329 1,419 -6.3% 13,470 13,985 -3.7%

16 Iran 1,085 1,044 3.9% 10,903 9,829 10.9%

17 Canada 1,050 1,012 3.8% 10,792 10,892 -0.9%

18 UK 821 826 -0.6% 8,131 8,323 -2.3%

19 Poland 760 713 6.7% 7,338 6,807 7.8%

20 Austria 634 673 -5.8% 6,472 5,970 8.4%

Source: Worldsteel.com, 11/22/11; in 000 tonnes

Source: World Steel Association, 7/11

Graph 2: World Steel Capacity Utilization Ratio


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Table 5: US Steel Imports, October & YTD 2011

Country Oct 11 Oct '10 % Chg YTD '11 YTD '10 % Chg

Japan 153 122 25.6% 1,681 1,235 36.1%

EU 324 355 -8.7% 3,537 3,590 -1.5%

Canada 561 470 19.3% 5,180 5,771 -10.2%

Brazil 264 57 364.0% 2,533 680 272.6%

Korea 213 202 5.3% 2,440 1,693 44.1%

Mexico 179 271 -34.1% 2,491 2,451 1.6%

Russia 37 91 -58.8% 1,227 1,237 -0.8%

China 105 57 83.7% 1,056 727 45.2%

Australia 96 23 316.8% 769 458 67.9%

South Africa 7 11 -39.9% 127 86 47.2%

Indonesia 2 7 44 27 63.7%

Turkey 40 30 32.2% 609 524 16.2%

Ukraine 28 1 2655.0% 319 103 209.3%

India 41 72 -43.4% 666 703 -5.3%

Others 142 119 19.5% 1,504 986 52.6%

Total 2,191 1,888 16.0% 24,182 20,271 19.3%

Source: Steel Guru, 11/30/11; in 000 tons

Steel Industry Update(ISSN 1063-4339) published 12 times/year by Locker Associates, Inc. Copyright 2011 by Locker Associates, Inc. Allrights reserved. Reproduction in any form forbidden w/o permission. Locker Associates, Inc., 225 Broadway Suite 2625 New York NY 10007.

Table 6: US Steel Exports by Region, YTD 2011

Region YTD '11 YTD '10 % Chg

NAFTA 8,388,231 7,839,035 7.0%

Non NAFTA* 993,711 931,856 6.6%

EU 459,316 356,263 28.9%

Africa 220,678 95,139 132.0%

Total Asia 845,376 768,927 9.9%

Total Exports 11,022,982 10,059,250 9.6%

Source: AIIS, 12/19/11; *Western Hemisphere; in tons


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Table 7: US Steel Exports by Country, October & YTD 2011

Country/Region Oct '11 Oct 10 % Chg YTD 11 YTD 10 % ChgCanada 565,918 521,853 8.4% 5,574,166 5,703,876 -2.3%

Mexico 310,773 251,956 23.3% 2,814,065 2,135,159 31.8%

Africa 54,948 30,844 78.1% 220,678 95,139 132.0%

EU 36,347 30,014 21.1% 459,316 356,263 28.9%

Other Asia 23,472 19,445 20.7% 222,095 212,627 4.5%Other W. Hemi 22,110 23,496 -5.9% 236,670 151,357 56.4%

Panama 18,893 9,056 108.6% 101,510 71,135 42.7%

Taiwan 17,781 8,518 108.7% 158,774 90,824 74.8%

Brazil 17,255 9,004 91.6% 117,850 128,721 -8.4%

Peru 15,133 1,470 929.5% 104,885 87,464 19.9%

India 14,026 20,038 -30.0% 142,034 158,374 -10.3%

China 10,521 9,920 6.1% 127,992 104,895 22.0%

Dom Republic 5,628 6,741 -16.5% 187,905 236,809 -20.7%

Colombia 5,399 10,857 -50.3% 93,976 95,987 -2.1%

Korea 5,305 4,759 11.5% 63,049 68,234 -7.6%

Venezuela 4,254 3,743 13.7% 56,457 57,649 -2.1%

Australia 3,476 2,035 70.8% 30,181 27,004 11.8%

Pakistan 2,964 3,888 -23.8% 27,634 39,081 -29.3%Others 2,452 1,178 108.1% 48,550 14,292 239.7%

Japan 2,323 1,988 16.9% 17,399 13,923 25.0%

Singapore 2,212 4,512 -51.0% 31,834 37,700 -15.6%

Ecuador 1,996 5,127 -61.1% 38,671 37,990 1.8%

Trin & Tobago 1,303 1,686 -22.7% 16,543 15,262 8.4%

Russia 1,273 775 64.3% 7,324 8,123 -9.8%

UAE 1,261 1,626 -22.4% 23,118 20,159 14.7%

Argentina 1,192 1,136 4.9% 12,792 12,279 4.2%

Turkey 1,108 481 130.4% 29,615 18,611 59.1%

Chile 978 1,090 -10.3% 26,452 37,203 -28.9%

Vietnam 834 7,824 -89.3% 31,447 23,110 36.1%

Total 1,151,135 995,060 15.7% 11,022,982 10,059,250 9.6%

Source: AIIS, 12./19/11; in tons

Table 8: US Exports of Ferrous Scrap by Destination, October & YTD 2011

(in 000 tonnes) Sep Aug Jul, YTD 11 YTD 10 % Chg

Canada 107 129 124 1,165 1,081 7.8%

China 374 467 320 3,239 2,240 44.6%

Hong Kong 9 6 7 86 75 15.0%

India 153 191 91 893 670 33.3%

Japan 5 8 47 222 154 44.1%

Malaysia 56 45 115 803 680 18.0%

Mexico 32 53 46 428 498 -14.0%

South Korea 189 338 196 2,395 2,258 6.1%

Taiwan 359 394 293 2,643 1,947 35.7%

Thailand 83 85 4 616 335 83.6%

Turkey 458 800 378 4,319 2,991 44.4%

Others 258 262 248 2,085 1,822 14.4%

Total 2,082 2,777 1,868 18,895 14,751 28.1

Source: American Metal Market, 11/18/11


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Table 9: Top 15 Global Container Fleet Operators, November 2011

Current Fleet Orderbook

Fleet Operator% Global

Fleet TEU TEU% Global

Fleet1 APM-Maersk 15.9% 2,507 529 21.1%2 Mediterranean Ship 13.1% 2,059 440 21.3%3 CMA CGM Group 8.5% 1,348 125 9.3%

4 Cosco 4.1% 642 244 38.0%5 Hapag-Lloyd 4.0% 633 132 20.9%6 Evergreen Line 3.9% 616 308 50.0%7 APL 3.8% 599 301 50.3%8 China Shipping 3.3% 525 160 30.5%9 Hanjin 3.0% 477 244 51.1%10 MOL 2.7% 433 115 26.6%11 OOCL 2.6% 412 133 32.1%12 NYK Line 2.6% 412 62 15.0513 CSAV Group 2.6% 408 36 8.8%14 Hamburg Sud Grp 2.6% 406 197 48.5%15 Yang Ming 2.2% 347 89 25.7%

Source: Journal of Commerce, 12./19/11; Note: All subsidiaries are consolidated.


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Steel Mill Products: US Imports, October & Year-to-Date

Imports: Country of Origin Month of October Year-to-Date

(000 net tons) 2011 2010 % Chg 2011 2010 % ChgCanada.. 590 470 25.5% 5,210 5,771 -9.7%

Mexico 180 271 -33.6% 2,492 2,451 1.7%

Other W. Hemisphere.. 299 82 264.6% 2,843 910 212.4%

European Union 368 355 3.7% 3,581 3,590 -0.3%

Other Europe*.. 143 130 10.0% 2,257 1,922 17.4%

Asia. 646 541 19.4% 6,932 4,997 38.7%

Oceania. 106 28 278.6% 881 537 64.1%

Africa.. 7 11 -36.4% 135 93 45.2%

Total 2,340 1,888 23.9% 24,331 20,271 20.0%

Imports: Customs District

Atlantic Coast 212 219 -3.2% 2,701 2,518 7.3%

Gulf Coast/Mexican Border 1,066 721 47.9% 10,864 6,918 57.0%

Pacific Coast. 322 322 0.0% 4,346 3,878 12.1%

Gr Lakes/Canadian Border. 724 610 18.7% 6,248 6,785 -7.9%

Off Shore 16 16 0.0% 172 173 -0.6%

Source: AISI; *includes Russia

Update #269


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Email: [email protected] | Website: www.lockerassociates.com

Locker Associates, Inc.

LOCKER ASSOCIATES is a business-consulting firm that specializes in enhancing thecompetitiveness of businesses and industries on behalf of unions, corporate and governmentclients. By combining expert business and financial analysis with a sensitivity to labor issues,the firm is uniquely qualified to help clients manage change by:

leading joint labor/management business improvement initiatives; facilitating ownership transitions to secure the long-term viability of a business;

conducting strategic industry studies to identify future challenges and opportunities; representing unions in strategic planning, workplace reorganization and bankruptcy formulating business plans for turnaround situations; and performing due diligence for equity and debt investors.

Over the last 28 years, the firm has directed over 225 projects spanning manufacturing,transportation, distribution and mining industries. Typical projects involve in-depth analysis of afirms market, financial and operating performance on behalf of a cooperative labor-management effort. Locker Associates also produces a widely read monthly newsletter, SteelIndustry Updatethat circulates throughout the U.S. and Canadian steel industry.

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steel industry update #269

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