Metals &Mining Alert:Daily prices and news,Scrap steel may displace China's iron ore appetite

类别:行业研究 机构:德意志银行 研究员:Jorge Beristain,Chris Terry 日期:2017-07-21

Industrials (/lb): aluminum $0.87 (+0.1%), copper $2.65 (-0.9%), lead $1.03 (-1.1%), molybdenum $7.14 (+0.0%); nickel $4.15 (-0.2%); zinc $1.26 (-0.4%);Precious (/oz): gold $1,227 (+0.3%), silver $16.09 (+0.0%); Steel (/mt): ChinaHRC $532 (-0.5%), SHFE Rebar $503 (+0.8%), MB Scrap Index $289 (+0.5%);Bulks: iron ore (/dmt) $64 (-0.3%), coking coal (/mt) $154 (+0.0%), freight (BCI)901 (-9.6%); Energy: Brent (/bbl) $47.79 (-3.7%), WTI (/bbl) $45.13 (-4.1%),natural gas (/mmBtu) $2.84 (-3.8%), thermal coal (/t) $83 (+2.3%).

    China’s scrap steel supply increases as infrastructure produced over decadesof growth is dismantled. Closure of induction furnaces has increased scrapavailability and pushed exports to an all-time high in May. This could displaceiron ore demand as mills produce steel from scrap and production fromenvironment-friendly EAF’s increase. Only ~11% of steel is produced fromscrap in China (vs. 70% in US). However, Fortescue Metals believes demandwill remain intact as scrap supply is tied to growth in car ownership which isrelatively low at 140 vehicles/1,000 people (vs. 700 in US). (Mining.com).

    US construction spending for May remains steady MoM at SAAR of $1.23tn(+4.5% YoY). Private construction spending was down 6.4% MoM to $943bnwhereas public spend was up 2.1% MoM to $287bn. (SBB).

    US Hot-Rolled Coil (HRC) spot price increased $4/st WoW to $609/st on 7/5.

    HR and Cold-Rolled sheet spread widened to $188/st (+$1/st WoW). NYMEXDecember 2017 forward HRC price rose $11/st WoW to $631/st. (CRU, CME).

    US steel output down 0.7% WoW to 1.72m st (-1.5% YoY), with utilization at73.6% (--60bps WoW, -90bps YoY) for week ending 7/1. YTD output totals~45m st (+2.1% YoY) with utilization at 74.4% (+180 bps YoY). (AISI).

    Chinese private-equity firm GSR, an investor in clean technology and electriccars, may be looking to purchase substantial stake in SQM. GSR reportedlyhad a meeting with the Chilean government in April to discuss the potentialpurchase of 20% stake (~$1.9bn). Although nothing official has been declaredyet, sources say they are moving close to finalizing a deal. (Reuters)Steel Dynamics to expand its Structural and Rail division at Columbia City,Indiana, to produce 240ktpa of rebar. The $75m project will enable the divisionto utilize excess melting/casting capacity (400ktpa) and scheduled forcompletion in 4Q18. Together with previously announced Roanoke Bar Divisionupgrade (200ktpa by YE17), Steel Dynamics could produce ~440ktpa (vs. 50-60k st in 2016) of rebar, representing ~5% market share. (Company)..

    Allegheny Technologies and GE Aviation announce JV to construct new R&Dpilot facility, to develop meltless titanium alloy powder manufacturingtechnology for use in additive manufacturing applications, including 3Dprinting. No capex or timing details given but this is likely to improve demand forATI’s products in applications such as CFM LEAP engine. (Company, DB)

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