The BDI is rising on the back of greater iron ore shipping and rising demand from the Asian economies—China’s in particular.
The Guggenheim Shipping ETF (SEA) is an index weighted with dry bulk shipping companies. China is key to the current high yields in this industry.
The outlook for U.S. Steel is improving. Analysts expect the steel demand in the U.S. to grow by more than 5% this year.
U.S. Steel stock has given more than 150% returns in the last year. Recently, Goldman Sachs raised the target price for U.S. Steel to $58.
U.S. Steel Canada has posted losses in the past five years. The aggregate losses are a whopping $2.4 billion.
As U.S. Steel moves towards electric arc furnaces (or EAF) for making steel, natural gas will become an important energy source.
There are two basic production techniques for making steel, blast furnace route (or BF) and electric arc furnace (or EAF).
U.S. Steel expects its key strategic actions to have a non cash, pretax charge of around $500-$600 million.
U.S. Steel share price has tumbled to around $17 per share. This underperformance prompted a major transformation strategy at the company.
With the recent imposition of anti-dumping duties, imports of tubular goods will likely decrease, helping U.S. Steel’s revenue in the tubular segment to increase.
In response to complaints from domestic steelmakers, the U.S. Department of Commerce ruled in their favor and imposed anti-dumping duties on imports of tubular goods.
The outlook for U.S. Steel’s flat rolled segment is dependent on the fortunes of its end markets, including the auto and construction industries.
U.S. Steel’s flat rolled segment has suffered from low profitability over the past few years, which has affected the overall profits of the company.
U.S. Steel has major operations in the United States, Canada, and Central Europe with several steel finishing joint ventures in Brazil and Mexico.
U.S. Steel Corporation’s stock has surged in the past few months, delivering more than 150% growth in the last year.
Five-year very large crude carrier (or VLCC) prices remained consistent at $75 million—last month’s levels. On year-over-year (or YoY) basis, prices increased by 36%. Besides, ten-year VLCC prices stood unchanged at $48 million. They increased by 41.2% YoY.
Newbuild very large crude carriers (or VLCC) remained consistent in August 2014. The data was provided by R.S. Platou—a leading international ship and offshore broking company. August 2014 newbuild prices for VLCCs—the largest common ship used to transport crude oil over long distances—remained consistent at the July 2014 levels of $97 million.
According to the U.S. Energy Information Administration (or EIA), for the week ending September 12, 2014, U.S. crude oil imports from Canada hit a record high of 2.99 million barrels per day (or bpd). This was a 20% increase from the same period last year. Meanwhile, the four-week average on September 12 was 2.93 million bpd.
According to the IEA, the last four-week average for crude oil imports into the U.S., as of September 12, 2014, stood at 7.8 million barrels per day (or bpd). This is 3.7% less than same period in 2013. It clearly indicates that the U.S. is relying on domestically produced oil instead of imports.
China has a rapidly growing economy. It has a large population of 1.35 billion people. As a result, China’s energy demand is rising significantly. It plays a major role in the crude tanker industry. Economic activity and industrial output are expanding quickly. China needs to supplement domestic energy resources with imported supplies on an ever-increasing scale.