| US Steel Production Declines: Negative for US Iron Ore Operations | |
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Iron Ore Prices Hold Steady, but for How Long? (Continued from Prior Part) US steel production
In this series, we’ve looked at economic indicators from China to see the demand trend for the seaborne iron ore side of the market. The data points give a mixed signal right now. China’s iron ore port inventory destocking is indicating some positive momentum in the short term.
We’ve looked closely at China in this series. Now let’s look at steel production trends in the United States (SPY). Cliffs Natural Resources (CLF) is the largest supplier of iron ore pellets to US steelmakers. A look at US steel production will help you decipher the health of other iron ore producers in the United States, such as AK Steel (AKS), ArcelorMittal (MT), and U.S. Steel (X).
Declining steel production
The above chart shows the trend in US steel production. US steel production data are released on a weekly basis by the American Iron and Steel Institute. Year-to-date, US steel production has declined 6.5% compared to the same period last year.
The capacity utilization ratio in the US steel industry has also declined to 72.4%, from 77.3% in the same period last year.
The major reason for lower production and capacity utilization is steel imports from other countries, including China. It’s because of ongoing cheaper imports that some integrated steelmakers have closed some of their iron ore mines. Steel Dynamics (STLD) has idled its Minnesota ironmaking operations for at least 24 months. Previously, AK Steel (AKS) wrote off its investment in the Magnetation joint venture.
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 6.7 billions as of today (€ 6.1 billions). Its stock quote reached its lowest recent point on March 28, 2003 at US$ 10.01, and its highest recent level on November 30, 2007 at US$ 98.85. United States Steel has 176 184 431 shares outstanding. |