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Cleveland-Cliffs’ shares have plunged 48.5% in the past year compared with the industry’s 13.8% decline.
US steelmakers Nucor and US Steel today raised prices for steel sheet products by $40/st after recent weeks of declining spot prices.
Both companies increased prices on hot-rolled coil (HRC) and cold-rolled coil products. US Steel also raised prices on its coated sheet products, while Nucor had an additional increase on galvanized products.
Nucor last raised prices in early January, but spot prices did not respond.https://www.argusmedia.com/en/news/2079366-nucor-us-steel-increase-steel-sheet-prices?amp=1&__twitter_impression=true
Back in July 19 after the earnings beat
I hope Mr CEO is getting ready to boil the dam frogs..getting late here - so hungry :)
The Dalian Commodity Exchange's most-traded iron ore contract climbed as much as 4.2% to 666 yuan ($95.55) a tonne, adding to Monday's 3.6% gain. Futures on the Singapore Exchange rose 1.8% to $87.53 yuan.
https://in.reuters.com/article/asia-ironore/china-iron-ore-extends-gains-on-stimulus-hopes-falling-brazil-exports-idINL4N2AW17N
and cash on hand, to repurchase, in the previously announced tender offers (“Tender Offers”) for any and all outstanding 7.625% senior notes due 2021 (the “AK Steel 2021 Notes”) and 7.50% Senior Secured Notes due 2023 (the “AK Steel 2023 Notes”) issued by AK Steel Corporation, all AK Steel 2021 Notes and AK Steel 2023 Notes
Consolidation at Trucking world-
https://www.trucknews.com/transportation/polaris-transportation-group-acquires-pri-logistics/1003136961/
I like Sprouts too. :). Go $CLF.
MBIOI the spot price for benchmark Fe 62% #ironore fines jumped 5.90% to $88.93 a tonne CFR #Qingdao on 02nd Mar, boosted by expectations that stimulus measures from Chinese govt, will lend much-needed support to country’s economic growth & specifically the commodities sector
Rio Tinto has predicted mining projects across the sector could face delays if the Chinese novel coronavirus (covid-19) outbreak keeps stopping several suppliers from meeting their contractual agreements.
http://www.qmeb.com.au/coronavirus-blamed-for-failing-to-meet-contracts-says-mining-giant
Goldman Sachs economists on Sunday predicted the U.S. Federal Reserve will cut interest rates aggressively perhaps before its next scheduled meeting in two weeks time, saying the head of the U.S. central bank sent a clear signal with his unscheduled statement on Friday.
It also added its voice to the growing chorus of those predicting a globally coordinated rate cut among the world's largest central banks.
As stock markets sank for a seventh straight day on worries the coronavirus outbreak will hurt the global economy, Fed Chair Jerome Powell on Friday afternoon said the Fed is "closely monitoring" developments and "will use [its] tools and act as appropriate to support the economy." https://in.finance.yahoo.com/amphtml/news/goldman-sachs-sees-fed-cutting-015332877.html
BHP on ASX has recovered so far from early dip. Hoping for the same to happen with CLF tomorrow. But market is not closed yet in AU
Brazilian mining company Vale SA said on Thursday it has begun preparations for a potential fuel leak from the damaged iron ore carrier MV Stellar Banner, which is stranded off the Brazilian northern coast.
Vale said in a statement it requested that oil company Petrobras appropriate ships to deal with the possible leak and has arranged for the dispatch of oceanic buoys to the area.
The MV Stellar Banner, owned by South Korea’s Polaris, had only started its trip to China carrying iron ore when it was stranded.
Reporting by Marcelo Teixeira; Editing by Chris Reese https://www.reuters.com/article/us-vale-sa-ship-idUSKCN20L36Q?taid=5e585bb409d31b0001388a96&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
Xinhua News Agency:
Official data shows that there are still a large number of severe cases of novel coronavirus infection in Hubei province, especially in Wuhan. What measures have been taken to treat severe patients so that the mortality rate is reduced? Thank you.
Ma Xiaowei:
Compared with SARS, the new coronavirus spreads faster. Most infected people show mild symptoms, while a small number of people are in a critical condition, with the heart and other organs affected. Among the fatalities, most people have serious underlying diseases, including heart disease, terminal cancer and kidney failure. There are also some young patients whose diseases developed rapidly, hence increasing the difficulty of treatment. Although the medical community lacks knowledge about the treatment of the disease, as well as the mechanism of its development and outcome, the viral damage to the body is consistent with the known pathophysiological process. Enhancing medical treatment and improving the quality of basic medical care are always the essential requirement for us.http://www.china.org.cn/node_7235826.htm
The American Iron and Steel Institute, which represents US domestic steelmakers, meanwhile, welcomed the court's ruling Friday.
https://www.spglobal.com/platts/en/market-insights/latest-news/metals/022820-us-appeals-court-denies-steel-importers-bid-to-end-section-232-tariffs
Q: As the COVID-19 epidemic is spreading in the ROK, Japan and other countries, Beijing and Shandong have tightened health regulation of personnel entering the city. Beijing decided that those who come from or have been to severely affected regions overseas are required to receive a 14-day quarantine. Does it signal that China has upgraded its restrictions on foreigners entering the country?
A: As the fight has come to a crucial stage at home, all in China are strictly on guard against rebounding of COVID-19 cases. In response to the spread of the epidemic outside China, the Beijing municipality strengthens health management of personnel entering the city. Those who come from or have been to severely affected regions overseas are required to receive a 14-day medical observation at home or in designated places. Meanwhile, foreign nationals in Beijing also need to obey community health management in a bid to guard against the epidemic.
I want to stress that the prevention and control regulations adopted by Beijing and other localities apply to all those who come from or have been to severely affected regions overseas, Chinese and foreign nationals alike. WHO experts point out that the strategies and tactics China has taken, quarantine included, prove correct and successful, yielding remarkable effects in slowing the epidemic spread and preventing human-to-human transmission.
These unusual measures at this unusual time have gained understanding and support from the Chinese people, and we believe relevant countries will understand and cooperate, too. China stands ready to take collaborated control and prevention measures with relevant countries to better protect the safety and health of Chinese and foreign nationals.
https://www.fmprc.gov.cn/mfa_eng/xwfw_665399/s2510_665401/2511_665403/t1750624.shtml
His tweet seems to be working now :).
Coronavirus getting its ass kicked? UA better go up now..
Toyota has restarted production at its four Chinese manufacturing facilities, a company spokesperson confirmed to Supply Chain Dive. The plants closed at the end of last month for the Lunar New Year celebration and have remained shuttered due to precautions surrounding COVID-19.
https://www.supplychaindive.com/news/toyota-restarts-manufacturing-4-china-facilities-coronavirus-covid/572906/?fbclid=IwAR1gcxECkl-whJz94jJXySNVXW1Z3U-GOo4Mo8sdVKbbgXIIp4iP3tpulOg
Coronavirus and this news. So things are getting better..
https://www.supplychaindive.com/news/toyota-restarts-manufacturing-4-china-facilities-coronavirus-covid/572906/?fbclid=IwAR1gcxECkl-whJz94jJXySNVXW1Z3U-GOo4Mo8sdVKbbgXIIp4iP3tpulOg
Now added April $6 @80 cents. Done with CLF position..now time to sit back and and stay away from the computer for sometime
Added more @1.15
Added more @43 cents
According to the Beijing Daily, top municipal officials said on Friday that the risk of the virus spreading in the capital remains high as more people return to work, with hospital infections in the capital, which attracted a lot of attention last week, highlighting the need for more stringent measures to prevent infection
http://www.ecns.cn/m/news/society/2020-02-24/detail-ifztvsqr0577662.shtml
https://medium.com/@z.riboua/the-coronavirus-the-silk-road-chinas-dark-side-history-is-once-again-repeating-itself-56f3876d0a0c?fbclid=IwAR0EQZ7-MfdMT2aLr9AjKxsZNnb6GZI1pN_8hA1EgsXTXtuEJQ1AE5N9a1g
Back in 2015- before selling Australian asset- CLF CEO made a decision to take miners on bus rather than airplane to the mining site- to cut cost. He has done all he can to reduce unnecessary expenses. Best CEO on wall street. What else can you expect from a CEO like him. Totally satisfied with the way he has turned around the company.
Added July $15 calls @1.40
16th Annual Steel Markets North America Conference
Date
March 16-17, 2020
City
Chicago, Illinois, USA
Venue
Ritz-Carlton Chicago
9:00
KEYNOTE
Lourenco Goncalves, Chairman, President and CEO, Cleveland-Cliffs Inc.
PrintAgenda
Agenda
Day 1: Monday, March 16, 2020
Day 2: Tuesday, March 17, 2020
8:00
Networking Breakfast
9:00
Chair’s Review of Day One
Michael Fitzgerald, Managing Editor, Ferrous Metals, S&P Global Platts
9:15
PANEL DISCUSSION Steel in D.C.
Moderator:Justine Coyne, News Editor, Metals, S&P Global Platts
Samir N. Kapadia, Principal, Chief Operations Officer, The Vogel Group
R. Will Planert, Partner, Morris, Manning & Martin, LLP
Bob Weidner, President and Chief Executive Officer, Metals Service Center Institute
The Section 232 War: Domestic Integrated’s vs. Everyone Else
The President’s Trade Agenda: China, USMCA, India, Brazil, Argentina, and Japan
Election 2020: What does it mean for Steel?
https://www.spglobal.com/platts/en/events/americas/steel-markets-north-america/agenda
PrintAgenda
Agenda
Day 1: Monday, March 16, 2020
7:45
Conference Registration and Networking Breakfast
8:45
Chair's Welcome and Opening Remarks
Christopher Davis, Regional Pricing Director, Metals, Americas, S&P Global Platts
9:00
KEYNOTE
Lourenco Goncalves, Chairman, President and CEO, Cleveland-Cliffs Inc.
9:30
KEYNOTE
Alan Kestenbaum, CEO, Executive Chairman, Stelco
10:00
PANEL DISCUSSION State of the Industry – Lessons learned and looking forward
Moderator: Michael Fitzgerald, Managing Editor, Ferrous Metals, S&P Global Platts
Tom Gibson, President and CEO, American Iron and Steel Institute
Timna Tanners, Managing Director, BofA Securities
Philip Gibbs, Director, Senior Equity Analyst, Metal & Mining, KeyBanc Capital Markets
Andreas Bokkenheuser, Executive Director, UBS
2020 and beyond—supply/demand assessment
Ongoing trade war impacts to the marketplace
Competitive Landscape—influence from competing materials
11:15
Networking and Refreshment Break
11:45
CASE STUDY Steel Dynamics Columbus—A Strategic Transformation
Madhu Ranade, Vice President and General Manager, Steel Dynamics
Introduction to Steel Dynamics Columbus
Transformation since acquisition by SDI in 2014
A cohesive plant-wide “Vision 2020”strategy for advanced Value-added product growth
Capital investments and Project Progress for Completion by end of 2020
12:15
Networking Luncheon
1:30
PANEL DISCUSSION Committing to the future – Production and new capacity
Barry Schneider, Senior Vice President, Flat Roll Steel Group Steel Dynamics
Clifford T. Smith, Executive Vice President, Chief Operating Officer, Cleveland-Cliffs Inc.
Additional speakers to be announced
2020 Demand outlook—new capacity and new mills coming online
Evolution of the steel producer—how is new technology impacting supply
What’s on the horizon—supply/demand outlook from the producer
Assessing the health of the market and identifying obstacles ahead
3:00
Networking and Refreshment Break
3:30
CASE STUDY The Automotive Outlook—Trends and implications for Steel and its competing materials
Scott Ulnick, Managing Principal, DuckerFrontier
Abey Abraham, Managing Director, Automotive and Materials, DuckerFrontier
Understanding the production outlook and the mix change towards CUVs, SUVs, and Pickup Trucks
Understanding the evolving OEM decision process – and implications of global platform convergence and materials required (value in use)
The greater mix and impact of BEV’s and PHEV’s to Steel and Aluminum
Automotive manufacturing and stamping – key insights from the tooling industry
Expectations and “point in time” forecasts for steel content and aluminum content in vehicles
4:15
Insight from the end-user-Driving demand through the downstream
Chris Shipp, Vice President, Supply Chain, Priefert Steel
Gurcan Kocdag, Vice President, Manufacturing & Supply, Ag Growth International
Demand trends-market discussion and impacting variables
Remaining market trimmers—lasting tariff impacts
Shadow from the trade war-evolutions and industry response
Balancing the supply chain-managing buyer risk
5:15
Steel Demand in a Bearish Energy Market
Nicole Leonard, Senior Project Consultant, Custom Analytics, S&P Global Platts
Future of OCTG Demand for US Oil & Gas Production — outlook on rig and drilling activity in US shale plays, the impact of producer “capital discipline,” and profitability at low oil and gas prices
Demand for New Pipelines and Line Pipe — overview of new US production capacity versus pipeline capacity and an outlook of where, if any, new pipelines may be proposed in the next five years
Rise of steel demand in new energy infrastructure — growth in storage, export, and petrochemical infrastructure and the potential for long-term steel demand growth in favor of large-scale energy infrastructure
Brochures
https://plattsinfo.spglobal.com/rs/325-KYL-599/images/GDO13%20S%26P%20Global%20Platts%20Steel%20Markets%20North%20America%20Brochure.pdf
Adapt or die..rule of stock trading
The Atlantic Basin pellet premium, another important pricing factor in our
contracts, averaged $57 per metric ton for the year ended December 31, 2019, a
3% decrease compared to 2018. However, the market for pellets deteriorated
rapidly during the second half of 2019, ending at a price of $38 per metric ton.
Given both the weak steel market conditions in Europe and declining demand for
high-quality iron ore products in China, pellet suppliers have lowered premiums
dramatically. This drove the Atlantic Basin pellet premium to a three-year low,
representing a substantial deterioration from the multi-year highs seen earlier
in the year.https://m.marketscreener.com/CLEVELAND-CLIFFS-INC-37488524/news/CLEVELAND-CLIFFS-Management-s-Discussion-and-Analysis-of-Financial-Condition-and-Results-of-Operat-30033217/
Added at 1.34
Added April $7 calls at 51 cents
ResourcesBy John D. Schulz · February 17, 2020
Financially struggling YRC Worldwide, which collectively represents the second-largest group of carriers in the $43 billion less-than-truckload (LTL) sector, will benefit from closings and reduced capacity in the $340 billion full truckload (TL) market, analysts and top YRC officials are telling Logistics Management.
“The year 2019 probably ended with close to 800 closings in the truckload industry,” YRC Worldwide President and CEO Darren Hawkins said in an interview. “That lessens capacity. Plus, the driver shortage, increased alcohol and drug screenings, the insurance market, all those things will impact capacity. The truckload market is (nearly) 10 times the size of the LTL market. But a ripple in truckload can create a tidal wave in LTL,” Hawkins added.
One top analyst is agreeing with Hawkins. Satish Jindel, principal of SJ Consulting, which closely tracks the LTL sector, said he believed LTL contract rates for shippers would rise at a higher rate than TL rates in 2020.
“One reason LTL will perform better is retailers are converting TL shipments to LTL because of e-commerce demand,” Jindel said. “LTL carriers are handling more retail shipments than ever before. That will continue. The caveat is the LTL industry must learn how to handle those shipments.”
As far as shippers are concerned, Hawkins told LM that rates will continue to track internal operational costs – led by soaring insurance rates and equipment prices – that continue to rise in the “mid-single digits.” But some of those costs are being offset through internal YRC efficiencies, he added.
Hawkins said the YRC companies – its 91-year-old long-haul unionized unit and its three regional freight haulers – and nearly all of its top competitors are focused on three things:
Operational optimization. Specifically, that means improving all of YRC’s long-haul and regional networks to take advantage of operational flexibility in its contract with the Teamsters union;
Technology improvements to help streamline and modernize different systems as well as deploying new technology to add in pickups and deliveries; and
Creating freight and lane density to protect its service offerings and geographical coverage
Going forward, Hawkins said, YRC will have fewer physical locations, but the same geographic service areas.
“We expect this will increase density, reduce mileage, facilities and equipment and better serve our customers,” Hawkins said, adding it consolidated 25 terminals last year and will “continue to evaluate” facilities to meet current and future business expectations.
“We need to do that in a simpler format – one where the customer has one contact,” Hawkins said
Last year was a busy one for the YRC companies even as their financial picture worsened slightly. YRC companies lost $104 million last year compared with net income of $20.2 million for its long haul and regional units in 2018 when the overall economic picture for the entire trucking industry was much stronger.
But Hawkins emphasized the positive, citing four major accomplishments last year that he said are the foundation of his company-wide strategies going forward. Last year YRC:
Ratified a new 5-year labor contract;
Refinanced term loans with improved and more flexible terms;
Reorganized its leadership team to streamline decision making and enhance execution across all functional areas of the organization; and
Completed reorganization of the enterprise-wide sales force
Hawkins said YRC’s full year financial results from 2019 are hurt with comparisons with 2018, which was a boom year all around for trucking. Last year’s results, he said, were hurt by a slump in U.S. manufacturing.
“The comparables in 2019 were difficult because 2018 was a very good year,” Hawkins told LM. “For us, 2019 was a year of managing costs, protecting our customers’ positions and getting lean to get to the bottom of the dip. What we’re seeing now is we’re not out of the bottom of the dip. But things are improving.”
Analysts have been waiting a long time for sustained profitability from YRC companies, which together represent the second-largest group of LTL carriers after FedEx Freight. YRC Worldwide, parent of the fourth- and seventh-largest groups of LTL carriers, lost $104 million last year, compared with $20.2 million net profit in 2018.
YRC’s total revenue for last year fell 3.4% to $4.871 billion from $5.092 billion in 2018.
“No one should be counting on external environment for improving one’s profitability,” says analyst Jindel. “They should focus on managing capacity. Then you will have higher profit margins. Period.”
One bright spot for YRC companies, Hawkins said, is their commitment to “last mile” deliveries from the booming e-commerce business.
“We’re very well positioned for last mile,” Hawkins said. “With our facilities, we’re everywhere our customer wants us to be, covering 95 percent of the population.”
But Hawkins noted that “all last mile deliveries are not created equal,” meaning some are more complicated than simply an LTL pickup or delivery. For more complex logistical needs in the last mile space, he said YRC calls in his HNRY Logistics unit if last mile deliveries require more than YRC-controlled assets to deliver.
“Final mile is a very important part of what we do,” Hawkins said. “We do several thousand lift gate deliveries every week. At the end of the day, we’re seeing ‘middle mile’ (Deliveries to various pickup locations) as important as well. We’re in the process of repositioning several large retail warehouses to be closer to customers. The trend I see there is very positive for YRC Worldwide.”
From an operations standpoint, analyst Jindel believes the key to YRC’s profitability is correctly managing its freight demand to its operating costs. Do that, he says, and the profitability situation will take care of itself.
“In all the years I’ve been in the industry, I don’t know once where shipper couldn’t get freight moved,” Jindel said. “All they had to do – even in the tightest of freight markets -- was pay more. They never could not find trucks. Let the shippers complain about not having capacity. That’s not the carriers’ job.”
One longer-term worry for YRC is its liquidity and loan situation. Jamie Pierson recently returned to the company after a three-year hiatus.
Under YRC’s new term loan covenants, YRC must maintain a minimum of $200 million in adjusted earnings before interest, taxes and amortization (EBITA). YRC ended 2019 at $211 million EBITA. With seasonality of the industry being that the first quarter is the weakest one within the calendar year, YRC officials know they are close to operating in the “red zone” of its loan restrictions.
Jamie Pierson, who recently returned to YRC as its chief financial officer after a three-year hiatus, is seen as a stabling influence within the YRC hierarchy under Hawkins. Pierson was YRC's CFO from 2011 to 2016 under former CEO James Welch, who has retired from the company. Pierson also joined the YRC board.
“Having Jamie Pierson back as CFO should be a positive for them,” analyst Jindel said. “He’s a very sharp guy. He should help Darren progress.”
Asked about YRC’s liquidity on a recent conference call with analysts, Pierson was candid when he responded: “I'm not being cheeky at all, (you) always want more, right? Sitting in my seat, you always want more, not less. And I think we -- I don't think, I know -- we ended the year at about $80-to-$100 million as a threshold. Levers that we have to pull, really, first and foremost, is operations. So we’ve simply got to perform better.”
https://www.logisticsmgmt.com/article/yrc_ceo_hawkins_sees_light_at_end_of_financial_tunnel_for_ltl_long_haul_reg
Sold all I had few days ago...will wait to see what is said on the conf call