UK HRC steel market still grappling with weak demand, high supplies
The UK coil market continued to be under pressure from slower demand as well as elevated supplies in the week to Friday, sources claimed.
Indian hot rolled for September-October arrival was being supplied at GBP445-GBP448/ mt DDP West Midlands, traders and a customer said.
This was cheaper than the best residential prices, which continued to be around GBP457-GBP465/ mt, resources said.
Turkish material was provided at GBP470/mt DDP for September-October, one trader and also one buyer said.
Most investors bemoaned softer outsell rates, which were having a destructive influence on the marketplace.
" One order we sent out last week made a margin," a service centre source in the West Midlands stated.
He claimed he had actually shed hot rolled sheet business at GBP485/mt DDP on a couple of big orders, when replacement HRC was landing around GBP500/mt.
" I think people are selling off stock as well as getting rid, people have got to sell it to spend for it.
" There's no industrial feeling in the industry as well as no onward prices that sustain the degrees individuals are selling at," he included, recommending June and also July would be destocking months as people tried to recover the supply and demand equilibrium.
An investor added: "There's too much stock on the ground and also it's not infiltrating as rapidly as we want it to. Certainly I can still see a great deal of it being round well into Q4."
One trader claimed service facilities had actually produced their own trouble by cutting costs to win company when demand was not there; they were working hard to sell as they were hopeless to invoice discount, he said.
"I do not believe there's a substantial amount scheduled for Q3-Q4, so the supply will work itself way with by the end of Q3," he included.
Buyers continued to resist as they expected to get less expensive prices in a week.
"Stocks at the anchors are perhaps the highest possible they have ever before been yet again forward orders especially without any more Chinese being available in are attenuated, the supplies will primarily be down by October-November," another service centre resource stated.
this page questioned where galv supply would originate from as soon as China left the marketplace offered the impending obligation.
Indian hot rolled for September-October arrival was being supplied at GBP445-GBP448/ mt DDP West Midlands, traders and a customer said.
This was cheaper than the best residential prices, which continued to be around GBP457-GBP465/ mt, resources said.
Turkish material was provided at GBP470/mt DDP for September-October, one trader and also one buyer said.
Most investors bemoaned softer outsell rates, which were having a destructive influence on the marketplace.
" One order we sent out last week made a margin," a service centre source in the West Midlands stated.
He claimed he had actually shed hot rolled sheet business at GBP485/mt DDP on a couple of big orders, when replacement HRC was landing around GBP500/mt.
" I think people are selling off stock as well as getting rid, people have got to sell it to spend for it.
" There's no industrial feeling in the industry as well as no onward prices that sustain the degrees individuals are selling at," he included, recommending June and also July would be destocking months as people tried to recover the supply and demand equilibrium.
An investor added: "There's too much stock on the ground and also it's not infiltrating as rapidly as we want it to. Certainly I can still see a great deal of it being round well into Q4."
One trader claimed service facilities had actually produced their own trouble by cutting costs to win company when demand was not there; they were working hard to sell as they were hopeless to invoice discount, he said.
"I do not believe there's a substantial amount scheduled for Q3-Q4, so the supply will work itself way with by the end of Q3," he included.
Buyers continued to resist as they expected to get less expensive prices in a week.
"Stocks at the anchors are perhaps the highest possible they have ever before been yet again forward orders especially without any more Chinese being available in are attenuated, the supplies will primarily be down by October-November," another service centre resource stated.
this page questioned where galv supply would originate from as soon as China left the marketplace offered the impending obligation.
Methanex to select second Chilean plant relocation to United States in Q2 2013
Canadian methanol manufacturer Methanex will certainly choose whether to relocate a 2nd methanol plant to Louisiana from Chile, where it has four plants, a firm exec stated Wednesday.
"We will certainly decide for the second plant in the 2nd quarter" of 2013, stated Tim Williams, Methanex's vice president of upstream & feedstock purchase.
In January, Methanex announced it would certainly move a 1 million mt/year plant from Chile to Geismar, Louisiana.
Building and construction of the initial plant in Louisiana, which is set up ahead online by the end of 2014, will have an estimated price of $550 million. Taking apart of the facility in Chile has actually currently begun, Williams stated.
dtpmp said lower natural gas rates in the United States were the driving element behind the decision to move the plant.
In Chile, Methanex has four methanol plants at Cabo Negro, near the city of Punta Arenas, with a combined ability of 3.8 million mt/year.
The business, which gets its gas products from Argentina, has dealt with supply disruptions because 2007 as chilly winters in Argentina pushed the government to draw away supplies to residential power generation.
Therefore, Williams claimed, only one plant is running in Chile as well as at much less than 50% capability.
The moving costs for the second plant would be less than $550 million, Williams said.
"Mobilization fees for things like heavy cranes as well as such would be less costly because we would time it so there would certainly be no demobilization period," he added.
In the meantime, Williams is hectic securing supplies for the Geismar methanol plant. Some 100,000 Mcf/d of gas feedstock would certainly be necessary for operations, he stated, with an overall contract cost of some $2 billion.
Williams has actually had arrangements with around 20 United States gas manufacturers to secure those supplies, however is shopping for a non-NYMEX based price.
"What we offer all over the world is a base rate for gas and also income sharing based on methanol prices," Williams claimed.
"That gets rid of the threat from the low gas cost for producers, but is a high enough price for them to pierce in completely dry gas plays," he included.
"We will certainly decide for the second plant in the 2nd quarter" of 2013, stated Tim Williams, Methanex's vice president of upstream & feedstock purchase.
In January, Methanex announced it would certainly move a 1 million mt/year plant from Chile to Geismar, Louisiana.
Building and construction of the initial plant in Louisiana, which is set up ahead online by the end of 2014, will have an estimated price of $550 million. Taking apart of the facility in Chile has actually currently begun, Williams stated.
dtpmp said lower natural gas rates in the United States were the driving element behind the decision to move the plant.
In Chile, Methanex has four methanol plants at Cabo Negro, near the city of Punta Arenas, with a combined ability of 3.8 million mt/year.
The business, which gets its gas products from Argentina, has dealt with supply disruptions because 2007 as chilly winters in Argentina pushed the government to draw away supplies to residential power generation.
Therefore, Williams claimed, only one plant is running in Chile as well as at much less than 50% capability.
The moving costs for the second plant would be less than $550 million, Williams said.
"Mobilization fees for things like heavy cranes as well as such would be less costly because we would time it so there would certainly be no demobilization period," he added.
In the meantime, Williams is hectic securing supplies for the Geismar methanol plant. Some 100,000 Mcf/d of gas feedstock would certainly be necessary for operations, he stated, with an overall contract cost of some $2 billion.
Williams has actually had arrangements with around 20 United States gas manufacturers to secure those supplies, however is shopping for a non-NYMEX based price.
"What we offer all over the world is a base rate for gas and also income sharing based on methanol prices," Williams claimed.
"That gets rid of the threat from the low gas cost for producers, but is a high enough price for them to pierce in completely dry gas plays," he included.
United States Midwest rebar constant; Turkish import uses boost
US Midwest rebar prices continued Monday to hold steady regardless of weeks of supposition they might be heading downward, market resources claimed.
" Domestic mills keep talking about [reducing prices] however after that the weather condition gets better and also they transform their mind," stated one Midwest representative.
Platts kept its weekly Midwest rebar rate evaluation at $475-$ 500/st ex-works on Monday.
More demand from the US construction market, along with the passage of the brand-new government highway costs, is aiding to generate some optimism in the rebar market heading right into March, the supplier said.
" I think individuals are extra hopeful that points are getting better, rather than the overview in current months," he said.
And also if greater import supplies out of Turkey stick, a decrease in prices is much more not likely, sources concurred.
Domestic rebar rates in Turkey have actually gotten on an upward trend given that mid-February and also greater import supplies to the United States started to arise in the recently in line with the greatly strengthening costs of both residential and also imported billet and scrap.
However dtpmp na7 claimed United States traders are on the sidelines and also aren't buying.
One United States investor stated present offers are around $335-$ 345/mt CFR ($ 308-$ 317/st CIF) for April shipments yet every person is waiting to see if prices come down once again before devoting to an order.
" People have actually done their orders for March, the next one they are speaking about is April shipments so there's still a couple of weeks before individuals need to make a step on generating shipments," he said.
Platts maintained its day-to-day US imported rebar price assessment to $303-$ 310/st CIF Houston. Turkey continues to be the cost leader in the United States Gulf.
" It's a great deal of delay and see right now for both import and also domestic," stated the Midwest distributor.
With so many buyers waiting longer to put orders it is creating some rigidity in the market for sure dimensions," he claimed.
" I believe we're going to see a lot of that this spring," the supplier said. "Everyone wants to purchase the bottom but when prices starts going the other method some people are mosting likely to run out good luck."
" Domestic mills keep talking about [reducing prices] however after that the weather condition gets better and also they transform their mind," stated one Midwest representative.
Platts kept its weekly Midwest rebar rate evaluation at $475-$ 500/st ex-works on Monday.
More demand from the US construction market, along with the passage of the brand-new government highway costs, is aiding to generate some optimism in the rebar market heading right into March, the supplier said.
" I think individuals are extra hopeful that points are getting better, rather than the overview in current months," he said.
And also if greater import supplies out of Turkey stick, a decrease in prices is much more not likely, sources concurred.
Domestic rebar rates in Turkey have actually gotten on an upward trend given that mid-February and also greater import supplies to the United States started to arise in the recently in line with the greatly strengthening costs of both residential and also imported billet and scrap.
However dtpmp na7 claimed United States traders are on the sidelines and also aren't buying.
One United States investor stated present offers are around $335-$ 345/mt CFR ($ 308-$ 317/st CIF) for April shipments yet every person is waiting to see if prices come down once again before devoting to an order.
" People have actually done their orders for March, the next one they are speaking about is April shipments so there's still a couple of weeks before individuals need to make a step on generating shipments," he said.
Platts maintained its day-to-day US imported rebar price assessment to $303-$ 310/st CIF Houston. Turkey continues to be the cost leader in the United States Gulf.
" It's a great deal of delay and see right now for both import and also domestic," stated the Midwest distributor.
With so many buyers waiting longer to put orders it is creating some rigidity in the market for sure dimensions," he claimed.
" I believe we're going to see a lot of that this spring," the supplier said. "Everyone wants to purchase the bottom but when prices starts going the other method some people are mosting likely to run out good luck."
United States regular coal production completes 16.5 million st, up 2.7%.
Weekly US coal manufacturing completed an approximated 16.5 million st in the week ended October 22, up 2.7% from the previous week yet off 10.5% from the year-ago week, Power Info Management data showed Thursday.
It was the 3rd highest possible once a week price quote reported year to date, with each of the leading three producing weeks in October. Each of the four significant generating United States containers increased production from the previous week, as producers make use of raised utility demand in advance of cold weather.
PRB PRODUCTION UP 2.7% ON WEEK.
For the week, coal production in Wyoming as well as Montana, which is mostly composed of production from the Powder River Container, completed an approximated 7.5 million st, up 2.7% from the previous week but off 12.3% from the year-ago week.
Year-to-date coal production in the region completes an estimated 258.5 million st, down 24.6% from in 2014, and would complete 313.9 million st on an annualized basis, off 24.8% from in 2014.
In Central Appalachia, once a week coal production totaled an estimated 1.6 million st, up 0.5% from the previous week however down 12% from the year-ago week. here -to-date manufacturing in the container completed an estimated 63.4 million st, down 28.4% from in 2015, and also would total 76.5 million st on an annualized basis, off 26.1% from in 2014.
Weekly coal production in North Appalachia amounted to an estimated 2.3 million st, up 3.8% from the previous week and also up 1.1% from last year.
Year-to-date production totaled an approximated 82.3 million st, down 14.4% from in 2014, and also would total 99.2 million st on annualized basis, off 14.6% from last year.
In the Illinois Container, regular coal production totaled an approximated 2.2 million st, up 2.4% from the prior week but down 3.7% from the year-ago week. Year-to-date production amounted to an approximated 82.8 million st, down 20.6% from in 2015, as well as would complete 99.7 million st on an annualized basis, off 19.6% from in 2014.
For the US, year-to-date coal production is estimated to overall 589.6 million st, down 20.7% from the same period in 2015, as well as would complete 712 million st on an annualized basis, down 20.5% from in 2014.
It was the 3rd highest possible once a week price quote reported year to date, with each of the leading three producing weeks in October. Each of the four significant generating United States containers increased production from the previous week, as producers make use of raised utility demand in advance of cold weather.
PRB PRODUCTION UP 2.7% ON WEEK.
For the week, coal production in Wyoming as well as Montana, which is mostly composed of production from the Powder River Container, completed an approximated 7.5 million st, up 2.7% from the previous week but off 12.3% from the year-ago week.
Year-to-date coal production in the region completes an estimated 258.5 million st, down 24.6% from in 2014, and would complete 313.9 million st on an annualized basis, off 24.8% from in 2014.
In Central Appalachia, once a week coal production totaled an estimated 1.6 million st, up 0.5% from the previous week however down 12% from the year-ago week. here -to-date manufacturing in the container completed an estimated 63.4 million st, down 28.4% from in 2015, and also would total 76.5 million st on an annualized basis, off 26.1% from in 2014.
Weekly coal production in North Appalachia amounted to an estimated 2.3 million st, up 3.8% from the previous week and also up 1.1% from last year.
Year-to-date production totaled an approximated 82.3 million st, down 14.4% from in 2014, and also would total 99.2 million st on annualized basis, off 14.6% from last year.
In the Illinois Container, regular coal production totaled an approximated 2.2 million st, up 2.4% from the prior week but down 3.7% from the year-ago week. Year-to-date production amounted to an approximated 82.8 million st, down 20.6% from in 2015, as well as would complete 99.7 million st on an annualized basis, off 19.6% from in 2014.
For the US, year-to-date coal production is estimated to overall 589.6 million st, down 20.7% from the same period in 2015, as well as would complete 712 million st on an annualized basis, down 20.5% from in 2014.
NWE benzene weakens vs naphtha, yet sentiment remains company for Feb
. Area Northwest European benzene prices deteriorated compared with feedstock upstream naphtha Wednesday, although market resources were still certain of the recurring strength of benzene in Europe for February.
Spot benzene rates for February slipped by over $10/mt to trade at $1,270/ mt for a 1,000 mt CIF ARA barge Wednesday afternoon, compared to rising worths in upstream naphtha.
The CIF NWE front-month naphtha split has rallied just recently on news of Western refinery closures, peaking at an eight-month high of minus $1.85/ b on Friday, January 27, after news of an FCC interruption at ConocoPhillips? 238,000 b/d Bayway Refinery.
The split has held over minus $7/b since January 17. In December it had actually been as low as as minus $11.30/ b.
This has actually seen the spread between benzene and naphtha slim to simply over $280/mt, compared to $372.50/ mt on January 24, where a brief squeeze on benzene supply saw rates relocate above $1,300/ mt.
The strong market conditions through January saw a sharp climb in contract values also. The NWE February CP for benzene resolved at Eur979/mt or $1,283/ mt Monday, up Eur116.50/ mt as well as $171.50/ mt compared to January.
The source of the benzene rate spike was stated to be a combination of minimal supply as a result of lack of feedstock pyrolisis fuel in Western Europe and better-than-expected need over January.
According to dtpmp phosphonate , this dynamic was likely to continue over February, suggesting that the current weakening of costs might be short term.
One investor said: "For February, I see that on the supply side, the impact of feedstock constraints is still beginning and I assume need is better than anticipated. The marketplace might have shed some momentum presently, yet it's still even more of a buy, there's very little downside." A sector source added: "We're still losing a lot of pygas to the gasoline swimming pool and also the marketplace comprehends that benzene rates have to remain attractive if we intend to obtain the pygas.".
March spot costs were claimed to be valued $10-15/ mt below February however, with the turn-arounds downstream likely to hit intake prices throughout March and early Q2.
Spot benzene rates for February slipped by over $10/mt to trade at $1,270/ mt for a 1,000 mt CIF ARA barge Wednesday afternoon, compared to rising worths in upstream naphtha.
The CIF NWE front-month naphtha split has rallied just recently on news of Western refinery closures, peaking at an eight-month high of minus $1.85/ b on Friday, January 27, after news of an FCC interruption at ConocoPhillips? 238,000 b/d Bayway Refinery.
The split has held over minus $7/b since January 17. In December it had actually been as low as as minus $11.30/ b.
This has actually seen the spread between benzene and naphtha slim to simply over $280/mt, compared to $372.50/ mt on January 24, where a brief squeeze on benzene supply saw rates relocate above $1,300/ mt.
The strong market conditions through January saw a sharp climb in contract values also. The NWE February CP for benzene resolved at Eur979/mt or $1,283/ mt Monday, up Eur116.50/ mt as well as $171.50/ mt compared to January.
The source of the benzene rate spike was stated to be a combination of minimal supply as a result of lack of feedstock pyrolisis fuel in Western Europe and better-than-expected need over January.
According to dtpmp phosphonate , this dynamic was likely to continue over February, suggesting that the current weakening of costs might be short term.
One investor said: "For February, I see that on the supply side, the impact of feedstock constraints is still beginning and I assume need is better than anticipated. The marketplace might have shed some momentum presently, yet it's still even more of a buy, there's very little downside." A sector source added: "We're still losing a lot of pygas to the gasoline swimming pool and also the marketplace comprehends that benzene rates have to remain attractive if we intend to obtain the pygas.".
March spot costs were claimed to be valued $10-15/ mt below February however, with the turn-arounds downstream likely to hit intake prices throughout March and early Q2.
