Thursday, September 30, 2004
World's steel makers have a lot to ponder in time of plenty
Business Day: "China will this year consume 28% of world production compared with just one-sixth in 1998. By 2008, the figure is expected to rise to 33%. China is currently the world's biggest steel producer and its biggest importer. Imports were 45-million tons last year and are likely to stay at 40- to 45-million ton s for the rest of this decade.
Between 1970 and 2000, steel demand worldwide rose only 1% to 2% a year on average. In the past three years annual growth has been around 6%. Many in the industry think this trend will continue at least until the end of this decade. "
Between 1970 and 2000, steel demand worldwide rose only 1% to 2% a year on average. In the past three years annual growth has been around 6%. Many in the industry think this trend will continue at least until the end of this decade. "
Wednesday, September 29, 2004
Economy Grows at 3.3 Percent Rate in 2Q
Yahoo! News: "The U.S. economy grew at an annual rate of 3.3 percent in the spring, the government reported Wednesday. That was significantly better than a previous estimate but still the weakest showing in more than a year. "
Tuesday, September 28, 2004
Steel Mill To Become Major Shopping Center
Gives new meaning to the term "steel recycling" ... Yahoo! News: "A steel factory may be coming back to life in the form of a major retail center.
The people behind Legacy Village want to turn the area off of the Jennings Freeway into a super shopping center, NewsChannel5 reported.
First Interstate Properties hopes to have the $90 million Steelyard Commons up and running by 2006.
The shopping center could bring in millions of dollars that people usually spend outside of Cleveland. "
The people behind Legacy Village want to turn the area off of the Jennings Freeway into a super shopping center, NewsChannel5 reported.
First Interstate Properties hopes to have the $90 million Steelyard Commons up and running by 2006.
The shopping center could bring in millions of dollars that people usually spend outside of Cleveland. "
Man impaled in head by steel rod
And here's a gruesome story for a Tuesday morning .... BBC NEWS | England | West Yorkshire: "Firefighters had to cut the rod down to 3ft to allow an ambulance crew to take the 30-year-old to hospital.
The man was conscious throughout his ordeal, an ambulance spokesman said. "
The man was conscious throughout his ordeal, an ambulance spokesman said. "
Steel prices force Maytag to mull price hikes
Steel prices force Maytag to mull price hikes: "Maytag said Monday that it may have to slap higher prices on some of its dealers for the second time this year to cover the soaring cost of steel and other materials."
BHP Billiton wins 3.2 bln usd iron ore deal with Chinese steel mills
ADVFN News Service: "BHP Billiton said the new sales commitments are for the supply of an
additional 12 mln tonnes a year of Marra Mamba ore from its operations in northwest Australia's Pilbara region."
additional 12 mln tonnes a year of Marra Mamba ore from its operations in northwest Australia's Pilbara region."
Monday, September 27, 2004
China keeping copper supplies tight
Falconbridge: "Strong demand from China will keep the world copper market in a supply deficit next year, Canada's Falconbridge Ltd. said on Monday.
But the deficit should shrink to 372,000 tonnes in 2005 after swelling to 799,000 tonnes this year as more metal is produced, Ian Pearce, Falconbridge's vice president for projects and engineering, told an international meeting of miners. 'China is driving copper demand,' Pearce told a meeting of miners. 'By 2010, China will account for 25 percent of the world's consumption of copper.' "
But the deficit should shrink to 372,000 tonnes in 2005 after swelling to 799,000 tonnes this year as more metal is produced, Ian Pearce, Falconbridge's vice president for projects and engineering, told an international meeting of miners. 'China is driving copper demand,' Pearce told a meeting of miners. 'By 2010, China will account for 25 percent of the world's consumption of copper.' "
Labels: Copper
Some Steel Workers Split On Election
ONN. Ohio News Now: "President Bush is getting some unlikely support in battleground states from some steelworkers who are grateful for temporary tariffs that helped the struggling industry begin rebounding.
The tariffs were imposed in 2002 to shield struggling U.S. steel producers from foreign competition.
The tariffs were supposed to be in place for three years, but the Bush administration ended them in December, a move that angered the unions. But some steelworkers were happy with the relief they got.
Experts say the sporadic support is because steelworkers in key states like Ohio got called back to work during Bush's presidency.
The United Steel Workers of America and other union leaders say most workers support democrat John Kerry, particularly because Bush ended the tariffs early. "
The tariffs were imposed in 2002 to shield struggling U.S. steel producers from foreign competition.
The tariffs were supposed to be in place for three years, but the Bush administration ended them in December, a move that angered the unions. But some steelworkers were happy with the relief they got.
Experts say the sporadic support is because steelworkers in key states like Ohio got called back to work during Bush's presidency.
The United Steel Workers of America and other union leaders say most workers support democrat John Kerry, particularly because Bush ended the tariffs early. "
Bush makes some inroads in steel states
TimesDispatch.com: "President Bush is getting support from unlikely people in battleground states: some steelworkers who are grateful for temporary tariffs that helped the struggling steel industry begin rebounding.
The 201 tariffs were imposed in March 2002 to shield struggling U.S. steel producers from foreign competition. The tariffs were supposed to be in place for three years, but the Bush administration ended them in December, angering the unions.
Still, Bush has won over support from some laborers in steel-producing Ohio, West Virginia and Pennsylvania that have a combined 46 of the 270 electoral votes needed to win the presidency.
Peter Morici, a professor at the University of Maryland in College Park, Md., and a steel-industry consultant, said it makes sense even though steel unions typically support Democrats, who have harped on Bush for an overall loss of manufacturing jobs during his term.
That's because during Bush's presidency, steelworkers have been called back to work in Ohio and Indiana, and their jobs have been saved in West Virginia, he said. 'That has a powerful impact on people's psyche.'"
The 201 tariffs were imposed in March 2002 to shield struggling U.S. steel producers from foreign competition. The tariffs were supposed to be in place for three years, but the Bush administration ended them in December, angering the unions.
Still, Bush has won over support from some laborers in steel-producing Ohio, West Virginia and Pennsylvania that have a combined 46 of the 270 electoral votes needed to win the presidency.
Peter Morici, a professor at the University of Maryland in College Park, Md., and a steel-industry consultant, said it makes sense even though steel unions typically support Democrats, who have harped on Bush for an overall loss of manufacturing jobs during his term.
That's because during Bush's presidency, steelworkers have been called back to work in Ohio and Indiana, and their jobs have been saved in West Virginia, he said. 'That has a powerful impact on people's psyche.'"
An aluminum and power tool manufacturer is shutting down in Gainesville, leaving 56 people jobless.
WXIA-TV Atlanta: "GAINESVILLE, Ga. (AP) -- An aluminum and power tool manufacturer is shutting down in Gainesville, leaving 56 people jobless.
Hibino Corporation of America says it will lay off the manufacturing and office employees in phases starting next month. All Hibino jobs should be gone by next February.
Japanese-based Hibino opened its first North American office ten years ago in Hall County.
Hibino was a major supplier to Makita Corporation, which made power tools, saws and hand-drills in Buford. An agreement between the two companies has been halted since Makita unveiled plans two years ago to move its manufacturing operations from the United States to China."
Hibino Corporation of America says it will lay off the manufacturing and office employees in phases starting next month. All Hibino jobs should be gone by next February.
Japanese-based Hibino opened its first North American office ten years ago in Hall County.
Hibino was a major supplier to Makita Corporation, which made power tools, saws and hand-drills in Buford. An agreement between the two companies has been halted since Makita unveiled plans two years ago to move its manufacturing operations from the United States to China."
Friday, September 24, 2004
Man Arrested For Stealing Copper
I guess it's a sign of the times ... WYTV: "[P]olice have arrested the man they believe is the ring leader a group of copper thieves. [...] He was involved with six others who have been charged with stealing copper wire from the now defunct CSC Steel. Lt. Bishop estimates they stole more than $14,000 worth of copper since June."
Labels: Copper
Visclosky leads bid for permanent steel monitoring
Northwest Indiana News: nwitimes.com - News: "'When President Bush revoked the tariffs,' Visclosky said in a press release, 'he promised to make the monitoring permanent so the effects of foreign steel would be fully understood. He has not kept this promise, and I will continue fighting to make sure monitoring becomes stronger and a permanent part of the industry.'"
Carmakers start to see squeeze from steel
AUTOSHOW: "Steel prices have as much as doubled over the last year on the back of strong demand from China, forcing some heavier-machine makers to charge a surcharge on tractors and bulldozers.
But you can't do that with cars.
Automakers are locked in fierce price wars and customers, now used to getting a lot of extras for their money, will not readily accept higher price tags "
But you can't do that with cars.
Automakers are locked in fierce price wars and customers, now used to getting a lot of extras for their money, will not readily accept higher price tags "
China clamps down on rogue steel mills
FT.com / Markets / Commodities: "China has launched a multi-pronged crackdown on unauthorised steel plants, in an attempt to counter the country's steel boom and ease shortages of power, coal and transport capacity that threaten to hobble the wider economy, officials, academics and steel executives said.
But in some areas the crackdown appears to have degenerated into a game of cat-and-mouse, with local authorities disobeying their seniors in the central and provincial governments the moment their backs are turned.
In Tangshan, a city near Beijing where nearly 200 small steel plants have mushroomed over the past two years, about 10 steel plants were closed down by central government agencies late last month for being wasteful, polluting and unlicensed, officials said.
But one of those plants, Tangshan Fufeng Steel, had reopened. 'We stopped production for a few days but we are back in business. What do you want to buy?' an executive at Fufeng said by telephone yesterday.
The story was similar in Hubei, a central province inland from Shanghai. The Hubei provincial government checked 128 small steel plants and closed 97 of them earlier this year. But there are still about 200 in operation.
'Because of local protectionism, the counties and towns just start up again after they have been closed,' said one Hubei official.
The disobedience at local level of the orders from higher stations in China's pyramidal bureaucracy is one of Beijing's most pressing political problems. Macro-economic controls implemented in April were imposed partly to teach local governments a lesson after they ignored Beijing's call for moderation in late 2003 and unleashed an investment frenzy in the first two months of the year.
This time, however, Beijing appears determined to alleviate the strain that the steel boom is placing on overburdened transport, electricity and coal industries. One tonne of steel, it is said, requires five tonnes of transport capacity - and China's railway network can handle only 40 per cent of the demand for rail freight.
Steel output was forecast to rise this year to 260m tonnes, up from 222m tonnes in 2003, and could reach nearly 300m tonnes in 2005 unless the current development trajectory was checked, industry analysts said.
Some 152m tonnes per annum in capacity is under construction, according to the National Development and Reform Commission. But Beijing is determined to ensure that not all of this gets built.
Projects to be strictly banned include those without central government approval that are just starting construction as well as those with blast furnaces smaller than 300 sq meters in capacity, according to an NDRC directive."
But in some areas the crackdown appears to have degenerated into a game of cat-and-mouse, with local authorities disobeying their seniors in the central and provincial governments the moment their backs are turned.
In Tangshan, a city near Beijing where nearly 200 small steel plants have mushroomed over the past two years, about 10 steel plants were closed down by central government agencies late last month for being wasteful, polluting and unlicensed, officials said.
But one of those plants, Tangshan Fufeng Steel, had reopened. 'We stopped production for a few days but we are back in business. What do you want to buy?' an executive at Fufeng said by telephone yesterday.
The story was similar in Hubei, a central province inland from Shanghai. The Hubei provincial government checked 128 small steel plants and closed 97 of them earlier this year. But there are still about 200 in operation.
'Because of local protectionism, the counties and towns just start up again after they have been closed,' said one Hubei official.
The disobedience at local level of the orders from higher stations in China's pyramidal bureaucracy is one of Beijing's most pressing political problems. Macro-economic controls implemented in April were imposed partly to teach local governments a lesson after they ignored Beijing's call for moderation in late 2003 and unleashed an investment frenzy in the first two months of the year.
This time, however, Beijing appears determined to alleviate the strain that the steel boom is placing on overburdened transport, electricity and coal industries. One tonne of steel, it is said, requires five tonnes of transport capacity - and China's railway network can handle only 40 per cent of the demand for rail freight.
Steel output was forecast to rise this year to 260m tonnes, up from 222m tonnes in 2003, and could reach nearly 300m tonnes in 2005 unless the current development trajectory was checked, industry analysts said.
Some 152m tonnes per annum in capacity is under construction, according to the National Development and Reform Commission. But Beijing is determined to ensure that not all of this gets built.
Projects to be strictly banned include those without central government approval that are just starting construction as well as those with blast furnaces smaller than 300 sq meters in capacity, according to an NDRC directive."
PMA Member Jim Evans Testifies Before U.S.-China Commission
PMA Member Jim Evans Testifies Before U.S.-China Commission: "Jim Evans testified today before the U.S.-China Commission at a field hearing in Akron, Ohio, telling his story of lost business, lost employees and loss of income tax revenue in the region due to U.S.-China trade, and called on the commission to restore balance to U.S.-China trade.
The field hearing, 'The Impact of U.S.-China Trade and Investment on Key Manufacturing Sectors' brought witnesses from auto parts, rubber, glassware, ceramics, as well as those representing steel manufacturers.
In his testimony, Evans, who is Purchasing Manager of Gentzler Tool & Die in Green, Ohio, a manufacturer of high volume stampings for the automotive, cookware, aeronautics and appliance industries, described the challenges of the metal stamping and tool & die industries. In addition to the burgeoning U.S.-China trade issue, U.S. manufacturers have faced a recession in 2000; high costs of doing business in the U.S.; product liability costs, taxes,
steel tariffs in 2002 and 2003; and, the more-than-doubling in the cost of steel in 2004 (for a number of reasons, including China)."
The field hearing, 'The Impact of U.S.-China Trade and Investment on Key Manufacturing Sectors' brought witnesses from auto parts, rubber, glassware, ceramics, as well as those representing steel manufacturers.
In his testimony, Evans, who is Purchasing Manager of Gentzler Tool & Die in Green, Ohio, a manufacturer of high volume stampings for the automotive, cookware, aeronautics and appliance industries, described the challenges of the metal stamping and tool & die industries. In addition to the burgeoning U.S.-China trade issue, U.S. manufacturers have faced a recession in 2000; high costs of doing business in the U.S.; product liability costs, taxes,
steel tariffs in 2002 and 2003; and, the more-than-doubling in the cost of steel in 2004 (for a number of reasons, including China)."
Thursday, September 23, 2004
America consumes 3 times more oil than it produces
Grandfather Economic Energy Report - by MWHodges: "The United States, with 5% of the world's population,
daily consumes 20 million barrels - - or 26% of the world's total.
And, America consumes 3 times more oil than it produces. "
daily consumes 20 million barrels - - or 26% of the world's total.
And, America consumes 3 times more oil than it produces. "
Oil Prices Climb Despite Gov't Statement
Oil Prices Climb Despite Gov't Statement: "Light crude for November delivery rose 11 cents to $48.46 per barrel on the New York Mercantile Exchange, retreating from an intraday high of $49. That was 24 cents below the Aug. 19 peak Nymex settlement price. Adjusting for inflation, today's prices are still about $8 below the level reached just before the first Gulf War.
The possibility of the government loaning oil to refiners comes as oil production in the Gulf of Mexico continues to lag by 27 percent below normal at 1.2 million barrels per day, according to the federal Minerals Management Service. The agency said 9.6 million barrels of oil have been lost since last Monday, when offshore producers began evacuating crews.
U.S. oil supplies typically grow this time of year as gasoline demand tapers off and refiners briefly shut down to perform maintenance. But with additional 1.5 million barrels per day of supply lost last week due to shipping delays, refiners have had to use oil held in storage in order to produce gasoline, heating oil and other fuels.
While the Bush administration sought to help refiners, energy analysts and traders said any assistance would not undo the broader market trends that have kept prices high all year.
Fadel Gheit, senior vice president of oil and gas research at Oppenheimer & Co. in New York, said lending oil from the SPR to refiners is 'too little, too late.'
Gheit also blamed President Bush for contributing to today's soaring prices through its policy of augmenting the country's emergency stockpile at a time when global demand and prices are high.
'He scared China and India and Korea and everybody else that we were anticipating supply shortages,' Gheit said, leading them to buy more oil than they needed and artificially inflating global demand. 'When somebody spots the mayor loading up on bottled water in the supermarket, guess what they're going to do?"
In the past, President Bush has resisted calls to tap into the SPR, located in Texas and Louisiana, in an effort to counter soaring prices. Instead, the White House has said that filling the reserve to its maximum 700 million barrels is a matter of national security and should not be interrupted.
The Energy Department loaned roughly 300,000 barrels of crude to Shell Oil in Oct. 2002 after Hurricane Lily.
The amount of excess oil production available worldwide is about 1 percent of total demand of about 82 million barrels a day, leaving the industry little breathing room in the event of a prolonged supply interruption, according to many analysts."
The possibility of the government loaning oil to refiners comes as oil production in the Gulf of Mexico continues to lag by 27 percent below normal at 1.2 million barrels per day, according to the federal Minerals Management Service. The agency said 9.6 million barrels of oil have been lost since last Monday, when offshore producers began evacuating crews.
U.S. oil supplies typically grow this time of year as gasoline demand tapers off and refiners briefly shut down to perform maintenance. But with additional 1.5 million barrels per day of supply lost last week due to shipping delays, refiners have had to use oil held in storage in order to produce gasoline, heating oil and other fuels.
While the Bush administration sought to help refiners, energy analysts and traders said any assistance would not undo the broader market trends that have kept prices high all year.
Fadel Gheit, senior vice president of oil and gas research at Oppenheimer & Co. in New York, said lending oil from the SPR to refiners is 'too little, too late.'
Gheit also blamed President Bush for contributing to today's soaring prices through its policy of augmenting the country's emergency stockpile at a time when global demand and prices are high.
'He scared China and India and Korea and everybody else that we were anticipating supply shortages,' Gheit said, leading them to buy more oil than they needed and artificially inflating global demand. 'When somebody spots the mayor loading up on bottled water in the supermarket, guess what they're going to do?"
In the past, President Bush has resisted calls to tap into the SPR, located in Texas and Louisiana, in an effort to counter soaring prices. Instead, the White House has said that filling the reserve to its maximum 700 million barrels is a matter of national security and should not be interrupted.
The Energy Department loaned roughly 300,000 barrels of crude to Shell Oil in Oct. 2002 after Hurricane Lily.
The amount of excess oil production available worldwide is about 1 percent of total demand of about 82 million barrels a day, leaving the industry little breathing room in the event of a prolonged supply interruption, according to many analysts."
Maytag, Whirlpool stocks down as steel concerns weigh
Reuters.com: "Maytag, whose stock fell more than 4 percent, was one of the biggest percentage losers among the S&P 500. Whirlpool's stock eased more than 2 percent.
'It's higher raw material prices,' said David MacGregor, an analyst with Longbow Research. He said higher prices of steel, plastics and other materials would weigh on manufacturers over the next couple of quarters.
Earlier Thursday, Electrolux warned that soaring steel prices would hurt its second-half operating income by about $68 million. The maker of Frigidaire products said it was no longer possible to offset materials price rises with internal measures."
'It's higher raw material prices,' said David MacGregor, an analyst with Longbow Research. He said higher prices of steel, plastics and other materials would weigh on manufacturers over the next couple of quarters.
Earlier Thursday, Electrolux warned that soaring steel prices would hurt its second-half operating income by about $68 million. The maker of Frigidaire products said it was no longer possible to offset materials price rises with internal measures."
Electrolux warns on higher steel prices
CBS MarketWatch: "Shares fell 6.7 percent after the Swedish vacuum cleaner maker said the higher costs would result in operating income for 2004 being 'somewhat lower' than previously forecast.
Electrolux said price increases on steel were of a 'magnitude we have not seen before'.
The company, which also makes refrigerators, washing machines and chain saws, said a second half increase of SEK1.2 billion ($160 million) in material and component costs would hit second half operating income by around SEK500 million.
It said the increased costs should in part be offset to the tune of SEK700 million by improved efficiency and increased purchasing in countries with lower cost bases.
'Material prices have showed continued strong increases and it is no longer possible to offset these by internal measures,' chief executive Hans Straberg said. "
Electrolux said price increases on steel were of a 'magnitude we have not seen before'.
The company, which also makes refrigerators, washing machines and chain saws, said a second half increase of SEK1.2 billion ($160 million) in material and component costs would hit second half operating income by around SEK500 million.
It said the increased costs should in part be offset to the tune of SEK700 million by improved efficiency and increased purchasing in countries with lower cost bases.
'Material prices have showed continued strong increases and it is no longer possible to offset these by internal measures,' chief executive Hans Straberg said. "
Firm blames steel prices in filing for bankruptcy
JS Online: "Citation Corp., which has plants in Menomonee Falls, Berlin and Browntown, has filed to reorganize under Chapter 11 in U.S. Bankruptcy Court in Birmingham, Ala.
The Birmingham-based company said Wednesday it will continue operating while it reduces its $300 million in debt and tries to raise prices for the specialty steel products it makes for automotive companies, their suppliers and other industries.
For months, rising scrap steel prices have raised havoc with metal products companies, said Robert Stevens, president of the Emergency Scrap Steel Coalition, which advocates for government intervention in the problems."
The Birmingham-based company said Wednesday it will continue operating while it reduces its $300 million in debt and tries to raise prices for the specialty steel products it makes for automotive companies, their suppliers and other industries.
For months, rising scrap steel prices have raised havoc with metal products companies, said Robert Stevens, president of the Emergency Scrap Steel Coalition, which advocates for government intervention in the problems."
Death toll in Haiti tops 1,000, another 1,200 feared dead
For instance, I'd say this story was more important than Janet Jackson's breast ... I wonder what the FCC is going to do with the half mill. it gets from the broadcaster ... maybe they should give it to this relief effort ... Yahoo! News
"with relief agencies battling mud and high water to get aid to a quarter of a million people affected by the flooding, tension rose in the city of Gonaives where famished residents tried to plunder trucks carrying emergency supplies, another UN official said.
"Our official toll at this stage is 1,013 people dead, 1,200 missing and 918 wounded," said Toussaint Kongo-Doudou, the spokesman for the UN peacekeeping mission that is playing a key role in the relief efforts.
He said that in view of the high number of people missing and feared dead, the death toll was certain to rise further.
Most of the fatalities were in the northern city of Gonaives, where many streets remained under water Wednesday, four days after Hurricane Jeanne caused deadly floods and mudslides in the Caribbean nation.
"As waters go down, we are finding more bodies," Kongo-Doudou told AFP. "
"with relief agencies battling mud and high water to get aid to a quarter of a million people affected by the flooding, tension rose in the city of Gonaives where famished residents tried to plunder trucks carrying emergency supplies, another UN official said.
"Our official toll at this stage is 1,013 people dead, 1,200 missing and 918 wounded," said Toussaint Kongo-Doudou, the spokesman for the UN peacekeeping mission that is playing a key role in the relief efforts.
He said that in view of the high number of people missing and feared dead, the death toll was certain to rise further.
Most of the fatalities were in the northern city of Gonaives, where many streets remained under water Wednesday, four days after Hurricane Jeanne caused deadly floods and mudslides in the Caribbean nation.
"As waters go down, we are finding more bodies," Kongo-Doudou told AFP. "
Job-Creating SBA Reauthorization Bills
House of Representatives > Small Business Committee: "The Small Business Reauthorization and Manufacturing Assistance Act of 2004 (H.R. 5108 and S. 2821) preserves and strengthens the popular 7(a) loan guarantee program by making permanent the temporary lender fee increases signed into law earlier this year and set to expire on Sept. 30. The bill sets a $16.5 billion authorization level for the 7(a) program. Without action, the fees could increase further and make the important job-creating program too expensive for small employers and lenders."
Wednesday, September 22, 2004
CBS Fined $550,000 for Jackson Stunt
Every once in a while, along comes a story you just have to comment on ...
With everything else that's going on in the world, terrorism, etc, it's hard to imagine that half a million people cared enough about this incident to complain to the FCC ... Yahoo! News: "The breast-baring song generated a record number of complaints to the FCC ? more than 500,000. "
With everything else that's going on in the world, terrorism, etc, it's hard to imagine that half a million people cared enough about this incident to complain to the FCC ... Yahoo! News: "The breast-baring song generated a record number of complaints to the FCC ? more than 500,000. "
Copper Futures Surge to Five-Month High as Chinese Demand Rises
Bloomberg.com: "Copper futures in London and New York rose to five-month highs on signs of improved demand from China, the world's biggest user of the metal and increased buying by hedge funds. "
Labels: Copper
RECORD BREAKING STEEL DEMAND FORECAST TO CONTINUE TO 2008
MEPS - Steel prices: "The global steel sector is entering a new phase. Growth in China has stimulated demand for steel across the Asian continent. The emerging and developing countries in the region are showing strong manufacturing activity - based on exports to the industrialised nations. Steel consumption is expected to move upwards over the next five years.
The fortunes of the world steel scene cannot be estimated using regressive analysis. Previous cyclical trends are not being followed. Boom conditions currently apply - based mainly on perceived raw material shortages. In the three years between 2001 and 2004 we estimate that apparent consumption of finished steel expanded from 766 to 918 million tonnes. This represents an increase of almost 20 percent or a year on year average of more than 6 percent. This compares to a rate of 2.5 percent per annum in the ten years to 2002 and a 1.2 annual percentage over three decades, 1970 to 2000.
We estimate global apparent consumption of finished steel in 2004 at 918 million tonnes - 5.3 percent above the year earlier figure. We do not expect the recent growth rates to continue into the medium term. However, we are forecasting further expansion in demand over the next few years - with apparent consumption of finished steel reaching 1 billion tonnes in 2008. This equates to an average annual increase of almost 3 percent over the next five years.
This rather modest prediction is based on two key factors. Firstly, apparent consumption growth over the last three years is, in our opinion, above the level of real demand. A large amount of inventory building has occurred, particularly in China. The talk of shortages of raw materials has prompted buyers to carry higher stock levels than previously considered necessary. Low interest rates have made this exercise much less painful than in the past. Secondly, the Chinese government is keen to avoid overheating of their economy. It is making attempts to reduce growth in key industrial sectors, including steel."
The fortunes of the world steel scene cannot be estimated using regressive analysis. Previous cyclical trends are not being followed. Boom conditions currently apply - based mainly on perceived raw material shortages. In the three years between 2001 and 2004 we estimate that apparent consumption of finished steel expanded from 766 to 918 million tonnes. This represents an increase of almost 20 percent or a year on year average of more than 6 percent. This compares to a rate of 2.5 percent per annum in the ten years to 2002 and a 1.2 annual percentage over three decades, 1970 to 2000.
We estimate global apparent consumption of finished steel in 2004 at 918 million tonnes - 5.3 percent above the year earlier figure. We do not expect the recent growth rates to continue into the medium term. However, we are forecasting further expansion in demand over the next few years - with apparent consumption of finished steel reaching 1 billion tonnes in 2008. This equates to an average annual increase of almost 3 percent over the next five years.
This rather modest prediction is based on two key factors. Firstly, apparent consumption growth over the last three years is, in our opinion, above the level of real demand. A large amount of inventory building has occurred, particularly in China. The talk of shortages of raw materials has prompted buyers to carry higher stock levels than previously considered necessary. Low interest rates have made this exercise much less painful than in the past. Secondly, the Chinese government is keen to avoid overheating of their economy. It is making attempts to reduce growth in key industrial sectors, including steel."
Steel report predicts global slow-down over next five years
letsrecycle.com: "The latest report from steel sector experts MEPS suggests the global steel market is entering a new phase.
The report said that the cyclical trends seen in the world steel market are no longer being followed, which makes regressive analysis impossible. Boom conditions currently apply in terms of steel prices ? based mainly on perceived raw material shortages. But, MEPS said 'we do not expect the recent growth rates to continue in the medium term'.
In the three years between 2001 and 2004, MEPS estimated an apparent expansion of finished steel consumption from 766 to 918 million tonnes worldwide, representing an average annual increase of 6% in that period.
This rate of increasing consumption more than doubled the 2.5% average annual increase seen in the decade up to 2002. From 1970 to the year 2000 the average annual increase was just 1.2%. The 2004 figure for finished steel consumption ? about 918 million tonnes ? represented a 5.3% increase on 2003. "
The report said that the cyclical trends seen in the world steel market are no longer being followed, which makes regressive analysis impossible. Boom conditions currently apply in terms of steel prices ? based mainly on perceived raw material shortages. But, MEPS said 'we do not expect the recent growth rates to continue in the medium term'.
In the three years between 2001 and 2004, MEPS estimated an apparent expansion of finished steel consumption from 766 to 918 million tonnes worldwide, representing an average annual increase of 6% in that period.
This rate of increasing consumption more than doubled the 2.5% average annual increase seen in the decade up to 2002. From 1970 to the year 2000 the average annual increase was just 1.2%. The 2004 figure for finished steel consumption ? about 918 million tonnes ? represented a 5.3% increase on 2003. "
Tuesday, September 21, 2004
China import wave jams ports, rail
The Globe and Mail: "Companies importing goods from China could face billions of dollars a year in extra costs as it becomes increasingly difficult to move fast-growing supplies of merchandise on time through a strained transportation system, industry representatives say.
The extra expenses could flow not only from shipping delays and penalties for late deliveries, but also from the potential for lost future business, said Jayson Myers, chief economist at Canadian Manufacturers & Exporters.
'It is a risk, and an increasing cost as a result of that,' Mr. Myers said in an interview from Ottawa. 'There are more and more strains on the capacity to ship. There's a real backlog of product, especially in Western Canada.
'We're probably talking billions of dollars, if you're looking at the overall cost of transportation for Canadian manufacturers and retailers.'
Some companies are even starting to reassess their decision to buy cheap merchandise from China, looking for alternative supply sources because of the clogged routes, he said.
Mr. Myers said the strains on the overseas transportation system are twofold: shipping from China to West Coast ports in North America, as well as shipping from those western ports to centres across North America. The capacity to move goods from the coast inland is also lagging, he said.
The difficulties will probably get worse in January when quotas on imported clothes will be lifted, setting the stage for cheap apparel from China and other low-cost producers to flood the market, industry officials added.
'It will be a real volatile situation,' said Bob Kirke, executive director of the Canadian Apparel Federation. 'It's going to be a real scramble.'"
The extra expenses could flow not only from shipping delays and penalties for late deliveries, but also from the potential for lost future business, said Jayson Myers, chief economist at Canadian Manufacturers & Exporters.
'It is a risk, and an increasing cost as a result of that,' Mr. Myers said in an interview from Ottawa. 'There are more and more strains on the capacity to ship. There's a real backlog of product, especially in Western Canada.
'We're probably talking billions of dollars, if you're looking at the overall cost of transportation for Canadian manufacturers and retailers.'
Some companies are even starting to reassess their decision to buy cheap merchandise from China, looking for alternative supply sources because of the clogged routes, he said.
Mr. Myers said the strains on the overseas transportation system are twofold: shipping from China to West Coast ports in North America, as well as shipping from those western ports to centres across North America. The capacity to move goods from the coast inland is also lagging, he said.
The difficulties will probably get worse in January when quotas on imported clothes will be lifted, setting the stage for cheap apparel from China and other low-cost producers to flood the market, industry officials added.
'It will be a real volatile situation,' said Bob Kirke, executive director of the Canadian Apparel Federation. 'It's going to be a real scramble.'"
Slow Boat to China
This is actually several days old, but I really like the quote ... Edwards implores labor to oust Bush Senator decries President's work on health care, job losses
toledoblade.com: "Michigan Gov. Jennifer Granholm, a Democrat, told the union members that 'we have seen our jobs go on a fast track to Mexico, a slow boat to China, and over the Internet to India,'' and the Kerry/Edwards ticket would reverse that trend."
toledoblade.com: "Michigan Gov. Jennifer Granholm, a Democrat, told the union members that 'we have seen our jobs go on a fast track to Mexico, a slow boat to China, and over the Internet to India,'' and the Kerry/Edwards ticket would reverse that trend."
Monday, September 20, 2004
Vietnam to build big steel plant
AngolaPress - News: "HANOI,09/20 - Vietnam will invest some 250 million US dollars in building a steel plant in the southern province of Ba Ria Vung Tau in the next few months, so as to meet its growing demand for steel products.
The Southern Steel Company will build the Phu My II Steel Plant, its second factory in the province, with an annual capacity of 530, 000 tons of steel billet and 500,000 tons of laminated steel in the 2006-2010 period, said the company on Monday.
The company will construct another facility with a yearly capacity of 500,000 tons of steel from 2010 to 2013.
The company, a major steel producer in Vietnam, has planned to put into operation its Phu My I Steel Plant with an annual capacity of 500,000 tons of steel billet and 500,000 tons of steel products in November 2004. The total investment for the plant stands at 135 million dollars.
Vietnam has imported 3.1 million tons of steel products and billets worth more than 1.4 billion dollars, mostly from China, Russia, Ukraine and Malaysia in the first eight months of this year, down 3.4 percent in volume, but up 25 percent in value over the same period last year, according to the General Statistics Office. "
The Southern Steel Company will build the Phu My II Steel Plant, its second factory in the province, with an annual capacity of 530, 000 tons of steel billet and 500,000 tons of laminated steel in the 2006-2010 period, said the company on Monday.
The company will construct another facility with a yearly capacity of 500,000 tons of steel from 2010 to 2013.
The company, a major steel producer in Vietnam, has planned to put into operation its Phu My I Steel Plant with an annual capacity of 500,000 tons of steel billet and 500,000 tons of steel products in November 2004. The total investment for the plant stands at 135 million dollars.
Vietnam has imported 3.1 million tons of steel products and billets worth more than 1.4 billion dollars, mostly from China, Russia, Ukraine and Malaysia in the first eight months of this year, down 3.4 percent in volume, but up 25 percent in value over the same period last year, according to the General Statistics Office. "
Sunday, September 19, 2004
ISG raises earnings outlook on higher steel prices
The Steubenville Herald-Star: "International Steel Group Inc. has become the second steel company to raise its third-quarter forecast because of higher steel prices.
Other steel companies could follow but steel prices could begin falling because of lower costs and weaker demand, said analyst Charles Bradford of Bradford Research.
Richfield-based ISG said Monday it expects earnings of $2 to $2.10 per share compared with the $1.70 per share consensus of analysts surveyed by Thomson First Call.
'They're going to beat us all,'' said Bradford, who forecast ISG's earnings at $1.90 per share. 'Steel business is good.''
ISG shares were initially up on the news Monday, but closed down 13 cents at $33.95 on the New York Stock Exchange.
'We are having a better-than-expected quarter because of the continuing strength of the steel market resulting in higher prices,'' president and CEO Rodney B. Mott said. 'We are optimistic that economic and steel market conditions will remain strong in North America and globally for the near term.'' "
Other steel companies could follow but steel prices could begin falling because of lower costs and weaker demand, said analyst Charles Bradford of Bradford Research.
Richfield-based ISG said Monday it expects earnings of $2 to $2.10 per share compared with the $1.70 per share consensus of analysts surveyed by Thomson First Call.
'They're going to beat us all,'' said Bradford, who forecast ISG's earnings at $1.90 per share. 'Steel business is good.''
ISG shares were initially up on the news Monday, but closed down 13 cents at $33.95 on the New York Stock Exchange.
'We are having a better-than-expected quarter because of the continuing strength of the steel market resulting in higher prices,'' president and CEO Rodney B. Mott said. 'We are optimistic that economic and steel market conditions will remain strong in North America and globally for the near term.'' "
AK Steel CEO says fixes still needed to ensure steelmaker's future
AP Wire 09/18/2004 : "AK Steel chief executive James Wainscott is warning that if additional steps are not taken, the worst may not be over for the 100-year-old steelmaker.
Wainscott, 47, who succeeded Dick Wardrop as CEO of the Middletown-based company, told retirees in a speech this month that the strong steel prices that have helped the company will not last. The price surge buoyed the company after concerns that it would have to file for bankruptcy protection.
'Ours is a cyclical business. I don't know when the markets will turn down but, as sure as day turns to night, the downturn will come,' he said.
Industry analysts agree.
'The big, overriding issue is they have to be competitive,' said independent steel analyst Chuck Bradford. 'The other producers, the major ones anyway, have different labor contracts that make them lower-cost competitors.'
The maker of carbon, stainless and electrical steel, which lost $1 billion over the last three years, made $92.7 million in the second quarter, including one-time gains. Sales rose 34 percent to $1.3 billion.
After falling below $2 a share, the stock closed Friday at $7.02."
Wainscott, 47, who succeeded Dick Wardrop as CEO of the Middletown-based company, told retirees in a speech this month that the strong steel prices that have helped the company will not last. The price surge buoyed the company after concerns that it would have to file for bankruptcy protection.
'Ours is a cyclical business. I don't know when the markets will turn down but, as sure as day turns to night, the downturn will come,' he said.
Industry analysts agree.
'The big, overriding issue is they have to be competitive,' said independent steel analyst Chuck Bradford. 'The other producers, the major ones anyway, have different labor contracts that make them lower-cost competitors.'
The maker of carbon, stainless and electrical steel, which lost $1 billion over the last three years, made $92.7 million in the second quarter, including one-time gains. Sales rose 34 percent to $1.3 billion.
After falling below $2 a share, the stock closed Friday at $7.02."
Toronto firm buys Wilton steel plant
Quad-City Times Newspaper Online: "North Star Steel plant manager Carl Czarnik says an agreement that will put North Star Steel-Wilton under new ownership “is a very positive thing for our division and employees and for the local community as well.”
Gerdau Ameristeel of Toronto, Ontario, has reached an agreement with Minneapolis-based Cargill Inc. to purchase the fixed assets and working capital of four North Star minimills, including the plant in Wilton.
The others are located in St. Paul, Minn., Calvert City, Ky., and Beaumont, Texas. The transaction includes wire-rod processing facilities in Beaumont, Texas; Carrollton, Texas; and Memphis, Tenn.; and a grinding ball facility in Duluth, Minn."
Gerdau Ameristeel of Toronto, Ontario, has reached an agreement with Minneapolis-based Cargill Inc. to purchase the fixed assets and working capital of four North Star minimills, including the plant in Wilton.
The others are located in St. Paul, Minn., Calvert City, Ky., and Beaumont, Texas. The transaction includes wire-rod processing facilities in Beaumont, Texas; Carrollton, Texas; and Memphis, Tenn.; and a grinding ball facility in Duluth, Minn."
Friday, September 17, 2004
AK Steel boosts steel surcharge
AK Steel boosts steel surcharge - 2004-09-17 - Dayton Business Journal: "AK Steel Corp. announced Friday it will increase its surcharge by 11 percent for steel products shipped beginning in October"
Thursday, September 16, 2004
Labor Web Site Tracks Jobs Sent Overseas
Labor Web Site Tracks Jobs Sent Overseas: "Organized labor is starting to track companies that ship U.S. jobs overseas and will make the information available to the public in a database.
An AFL-CIO affiliate, Working America, has compiled the information from a variety of sources, including the government's trade adjustment assistance program for workers who lose jobs because of trade, companies' annual reports and financial disclosures, and research by interest groups."
An AFL-CIO affiliate, Working America, has compiled the information from a variety of sources, including the government's trade adjustment assistance program for workers who lose jobs because of trade, companies' annual reports and financial disclosures, and research by interest groups."
Wednesday, September 15, 2004
Japan steelmakers to raise steel material output amid tight supply
ADVFN News Service: "TOKYO (AFX) - Major steelmakers are scrambling to boost their production of
steel materials in response to growing demand, with Nippon Steel Corp, Japan's
largest steel maker, planning a 40 bln yen investment to retool its facilities
and JFE Steel Corp scrapping its plan to suspend operations at a steel sheet
assembly line, the Nihon Keizai Shimbun reported, without citing sources."
steel materials in response to growing demand, with Nippon Steel Corp, Japan's
largest steel maker, planning a 40 bln yen investment to retool its facilities
and JFE Steel Corp scrapping its plan to suspend operations at a steel sheet
assembly line, the Nihon Keizai Shimbun reported, without citing sources."
Scavengers pick up scrap metal for change
Here's a new take on recycling ... Local News: "Days after Hurricane Frances hit the Space Coast, Larry Cannon drove his old blue pickup up and down the streets of his Indialantic neighborhood looking for aluminum in any shape or form.
With silver hoop earrings, a pierced left nipple and colorful hibiscus tattoos on his right arm, Cannon cut a striking path through this debris-strewn beachside community still recovering from the storm. But he provided a service to those too weary from dealing with other problems like damaged roofs and no electricity.
Cannon isn't alone. Roving bands of rogue recyclers scour neighborhoods for wind-torn aluminum debris to cash in for recycling.
Gutters, soffits, awnings and carports, even an entire garage door. If Cannon saw it, he'd jump out, ask the homeowner for permission to drag it off their property and throw it into the back of his truck or onto the metal trailer he towed behind the truck.
When Cannon had a large enough pile in his yard, he drove it up to a recycling center in Rockledge for cash - about $310 for two loads of aluminum. At 20 cents a pound, that's 1,550 pounds of cannibalized carport and lambasted lanai.
'It'll help pay for the gas to my generator at this point,' said Cannon, who still was without power on Monday, eight days after he lost it.
Nearly twice as many people are dropping off five times as much aluminum as normal at ATM Recycling in Cocoa, supervisor Daniel Durante said. "
With silver hoop earrings, a pierced left nipple and colorful hibiscus tattoos on his right arm, Cannon cut a striking path through this debris-strewn beachside community still recovering from the storm. But he provided a service to those too weary from dealing with other problems like damaged roofs and no electricity.
Cannon isn't alone. Roving bands of rogue recyclers scour neighborhoods for wind-torn aluminum debris to cash in for recycling.
Gutters, soffits, awnings and carports, even an entire garage door. If Cannon saw it, he'd jump out, ask the homeowner for permission to drag it off their property and throw it into the back of his truck or onto the metal trailer he towed behind the truck.
When Cannon had a large enough pile in his yard, he drove it up to a recycling center in Rockledge for cash - about $310 for two loads of aluminum. At 20 cents a pound, that's 1,550 pounds of cannibalized carport and lambasted lanai.
'It'll help pay for the gas to my generator at this point,' said Cannon, who still was without power on Monday, eight days after he lost it.
Nearly twice as many people are dropping off five times as much aluminum as normal at ATM Recycling in Cocoa, supervisor Daniel Durante said. "
Tuesday, September 14, 2004
Retail Sales Drop 0.3 Percent in August
Yahoo! News - Retail Sales Drop 0.3 Percent in August: "Shoppers turned tightfisted in August, dropping sales at the nation's retailers by 0.3 percent, providing fresh evidence of an erratic pace of consumer spending in recent months. "
ISG raises earnings outlook on higher steel prices
Observer-Reporter: " International Steel Group Inc. is the second steel company to raise its third-quarter forecast because of higher steel prices.
Other steel companies could follow but steel prices could begin falling because of lower costs and weaker demand, said analyst Charles Bradford of Bradford Research. "
Other steel companies could follow but steel prices could begin falling because of lower costs and weaker demand, said analyst Charles Bradford of Bradford Research. "
Monday, September 13, 2004
Caution ahead of Q3 results
TheStar.com - Caution ahead of Q3 results: "Alcoa unnerved markets at week's end when it said Thursday that a strike at its Becancour, Que., smelter, restructuring charges and softness in the automotive, packaging and European end markets will hurt quarterly earnings."
Sunday, September 12, 2004
Stainless style: Steel becoming ever pricier
Bradenton Herald | 09/12/2004 | Stainless style: Steel becoming ever pricier: "The price of stainless steel has risen as much as 60 percent in the past year, reflecting a shortage worldwide due in large part to demand for the metal from fast-growing China. Wholesale steel prices continue to rise, with one major maker just last week announcing another round of 3 to 6 percent price increases.
That higher cost, in turn, is increasing appliance prices anywhere from 1 to 10 percent."
That higher cost, in turn, is increasing appliance prices anywhere from 1 to 10 percent."
Copper Prices Rise as Peru Mine Workers Vote to Continue Strike
Bloomberg.com: Latin America: "Copper Prices Rise as Peru Mine Workers Vote to Continue Strike "
Labels: Copper
Wednesday, September 01, 2004
Manufacturing Activity Up for 15th Month
Manufacturing Activity Up for 15th Month: "Manufacturing activity rose in August for the 15th consecutive month, but at a slower rate than in July, according to a monthly report released Wednesday by the Institute for Supply Management, a research group."
