Monday, January 31, 2005
Steel Sector Fuels Demand for Coking Coal
Yahoo! News
Mining companies, raking in big profits from suddenly sky-high coal prices, are also poised to cash-in on the booming steel industry's need for coke to fire blast furnaces. "With steel demand and prices as they are, they (steel makers) want maximum coking to run their ovens with our high- quality coke," Massey Chairman and Chief Executive Officer Don Blankenship told Wall Street analysts on a conference call. "It presents more market opportunities."
Richmond, Virginia-based Massey produced 42 million tons of coal during 2004, three-quarters of it steam coal, which is primarily sold to utilities to fuel power plants.
But 10 million of those 42 million tons were metallurgical coal and Massey expects the amount to rise to 13 million to 14 million tons in 2005.
Mining companies, raking in big profits from suddenly sky-high coal prices, are also poised to cash-in on the booming steel industry's need for coke to fire blast furnaces. "With steel demand and prices as they are, they (steel makers) want maximum coking to run their ovens with our high- quality coke," Massey Chairman and Chief Executive Officer Don Blankenship told Wall Street analysts on a conference call. "It presents more market opportunities."
Richmond, Virginia-based Massey produced 42 million tons of coal during 2004, three-quarters of it steam coal, which is primarily sold to utilities to fuel power plants.
But 10 million of those 42 million tons were metallurgical coal and Massey expects the amount to rise to 13 million to 14 million tons in 2005.
Saturday, January 29, 2005
Steel Industry Appears to be Getting Safer
Well, this certainly sounds like good news .... OSHA Releases Site-Specific Injury Rates for Steel Industry
OccupationalHazards.com
By at least one measure, the steel industry appears to be getting safer: According to information recently released by OSHA, the number of steel facilities reporting a lost workday injury and illness rate of zero jumped from just two in 1999 to 23 in 2001.
As a result of a successful lawsuit brought by The New York Times, the public can now file Freedom of Information Act requests and find out lost workday injury and illness (LWDII) recorded rates for specific facilities. Until now, OSHA had declined to release the information, arguing that employers who submitted the rates should receive notice of the Freedom of Information Request before disclosure of the data. A U.S. District Court rejected this argument and required OSHA to release the rates.
Making use of this new access to LWDII rates, OCCUPATIONAL HAZARDS requested and OSHA has supplied the information for all the plants in the steel industry (SIC 3312) from 1999 to 2001. OSHA describes establishments in this sector as manufacturers of hot metal, pig iron and silvery pig iron from iron ore and iron and steel scrap. More recent information is not available because OSHA is still using it in order to target its inspections at high-hazard facilities in its Site Specific Targeting (SST) program.
OccupationalHazards.com
By at least one measure, the steel industry appears to be getting safer: According to information recently released by OSHA, the number of steel facilities reporting a lost workday injury and illness rate of zero jumped from just two in 1999 to 23 in 2001.
As a result of a successful lawsuit brought by The New York Times, the public can now file Freedom of Information Act requests and find out lost workday injury and illness (LWDII) recorded rates for specific facilities. Until now, OSHA had declined to release the information, arguing that employers who submitted the rates should receive notice of the Freedom of Information Request before disclosure of the data. A U.S. District Court rejected this argument and required OSHA to release the rates.
Making use of this new access to LWDII rates, OCCUPATIONAL HAZARDS requested and OSHA has supplied the information for all the plants in the steel industry (SIC 3312) from 1999 to 2001. OSHA describes establishments in this sector as manufacturers of hot metal, pig iron and silvery pig iron from iron ore and iron and steel scrap. More recent information is not available because OSHA is still using it in order to target its inspections at high-hazard facilities in its Site Specific Targeting (SST) program.
Thursday, January 27, 2005
U.S. Orders for Durable Goods Increased 0.6% in December, 10.9% for all of 2004
Bloomberg.com
U.S. orders for durable goods rose for a second month in December, led by demand for machinery, computers and other business equipment, a government report showed.
Companies ordered 10.9 percent more durable goods in 2004, the most in a decade and three times as much as the prior year. Spending by businesses to replace older equipment and meet demand is helping boost factory demand, economists said. Such investment will help power the economy and lead to ``healthy'' job growth, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said in a speech this week.
The rise in orders last year was the most since an 11.8 percent increase in 1994.
U.S. orders for durable goods rose for a second month in December, led by demand for machinery, computers and other business equipment, a government report showed.
Companies ordered 10.9 percent more durable goods in 2004, the most in a decade and three times as much as the prior year. Spending by businesses to replace older equipment and meet demand is helping boost factory demand, economists said. Such investment will help power the economy and lead to ``healthy'' job growth, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said in a speech this week.
The rise in orders last year was the most since an 11.8 percent increase in 1994.
Copper May Fall in 2005
Finally some good news for copper prices (maybe) ...
Bloomberg.com
Copper prices may fall more than 7 percent in 2005, the first annual drop in four years, as mining companies including Phelps Dodge Corp. boost production.
Copper demand, led by China and the U.S., jumped 8 percent to 16.7 million tons in 2004, exceeding production by 1 million tons. Manufacturers [...dipped into] inventories to meet demand.
Phoenix-based Phelps Dodge, the world's second-largest copper producer, and Melbourne-based BHP Billiton, the largest mining company, said they increased production from mines in Chile and Mexico.
"It is very probable that production growth will accelerate sharply,'' [analyst Stephen] Briggs said in a Jan. 17 report. Output from mines and scrap will rise 11 percent this year to 17.4 million tons, matching demand, he said.
Bloomberg.com
Copper prices may fall more than 7 percent in 2005, the first annual drop in four years, as mining companies including Phelps Dodge Corp. boost production.
Copper demand, led by China and the U.S., jumped 8 percent to 16.7 million tons in 2004, exceeding production by 1 million tons. Manufacturers [...dipped into] inventories to meet demand.
Phoenix-based Phelps Dodge, the world's second-largest copper producer, and Melbourne-based BHP Billiton, the largest mining company, said they increased production from mines in Chile and Mexico.
"It is very probable that production growth will accelerate sharply,'' [analyst Stephen] Briggs said in a Jan. 17 report. Output from mines and scrap will rise 11 percent this year to 17.4 million tons, matching demand, he said.
Labels: Copper
U.S. Steel profit-sharing checks expected to be high
Northwest Indiana News
U.S. Steel Corp.'s union workers are eagerly awaiting their share of the company's fourth quarter record profits.
The United Steelworkers of America represented workers will be getting profit-sharing checks for the fourth quarter within the next two weeks. With the profit-sharing pool based on the company's operating profits, the fourth quarter should set another record.
U.S. Steel Corp.'s union workers are eagerly awaiting their share of the company's fourth quarter record profits.
The United Steelworkers of America represented workers will be getting profit-sharing checks for the fourth quarter within the next two weeks. With the profit-sharing pool based on the company's operating profits, the fourth quarter should set another record.
Riverport Steel Plant Would Bring Jobs, But Nearby Residents Oppose It
WAVE 3 TV Louisville, KY
After years on the drawing board but just weeks of hearings and planning commission review, work has begun on a new steel plant in the Riverport Industrial Park
Neighbors of the soon-to-be built Maverick Steel factory that will specialize in the manufacture of conduit gathered Tuesday night at the Millcreek VFW to hear from opponents.
"They should be somewhere else besides this area," said Mike Stansbury. "They should certainly not be backing up just a stone's throw from a residential area, where there's children playing and elderly folks in the neighborhood."
After years on the drawing board but just weeks of hearings and planning commission review, work has begun on a new steel plant in the Riverport Industrial Park
Neighbors of the soon-to-be built Maverick Steel factory that will specialize in the manufacture of conduit gathered Tuesday night at the Millcreek VFW to hear from opponents.
"They should be somewhere else besides this area," said Mike Stansbury. "They should certainly not be backing up just a stone's throw from a residential area, where there's children playing and elderly folks in the neighborhood."
Incentives sought for steel plant
The Clarion-Ledger
Mississippi lawmakers are drafting a bill that could allow up to $25 million in incentives to a steel company in hopes it will build a $650 million plant in Lowndes County and bring up to 450 jobs to the area.
The company, SteelCorr, would invest about $250 million in construction and between $400 million to $450 million for equipment, said Rep. Jeff Smith, D-Columbus, who sits on the Ways and Means Committee that will take up the bill.
Mississippi lawmakers are drafting a bill that could allow up to $25 million in incentives to a steel company in hopes it will build a $650 million plant in Lowndes County and bring up to 450 jobs to the area.
The company, SteelCorr, would invest about $250 million in construction and between $400 million to $450 million for equipment, said Rep. Jeff Smith, D-Columbus, who sits on the Ways and Means Committee that will take up the bill.
Tuesday, January 25, 2005
U.S. Steel Reports Profit on Sales Surge
Yahoo! News
United States Steel Corp., the largest U.S. integrated steelmaker, on Monday reported a fourth-quarter profit after a loss a year earlier, citing robust worldwide steel prices and tight supplies.
United States Steel Corp., the largest U.S. integrated steelmaker, on Monday reported a fourth-quarter profit after a loss a year earlier, citing robust worldwide steel prices and tight supplies.
Sunday, January 23, 2005
The eBay of the Steel Industry
CoilWorld:
you can now buy salvage or excess basic steel products – from galvanized coils to re-bar – by bidding for the quantities you need over the ‘net’.
“We’re really the Ebay of the steel industry,� explains Scott Shapiro, CEO of SteelSalvor LLC, Narberth, PA.
you can now buy salvage or excess basic steel products – from galvanized coils to re-bar – by bidding for the quantities you need over the ‘net’.
“We’re really the Ebay of the steel industry,� explains Scott Shapiro, CEO of SteelSalvor LLC, Narberth, PA.
Friday, January 21, 2005
Molybdenum ("Moly") boosts Copper Company's Bottom Line
iWon Money & Investing
In 2004, Codelco produced about 70 million metric tons of molybdenum, or 27% more than in the previous year, Pablo Bascur, Codelco's byproduct sales manager, told Dow Jones Newswires. Bascur said that molybdenum accounted for nearly $1 billion of the company's profits last year. The company will likely release its earnings report in late February or early March.
The metal, which in Chile is found as a byproduct of copper, is used in steel alloys. Known in metals markets as 'moly', it is at prices not seen since 1995 thanks to booming demand, mainly from China.
In 2004, Codelco produced about 70 million metric tons of molybdenum, or 27% more than in the previous year, Pablo Bascur, Codelco's byproduct sales manager, told Dow Jones Newswires. Bascur said that molybdenum accounted for nearly $1 billion of the company's profits last year. The company will likely release its earnings report in late February or early March.
The metal, which in Chile is found as a byproduct of copper, is used in steel alloys. Known in metals markets as 'moly', it is at prices not seen since 1995 thanks to booming demand, mainly from China.
Labels: Copper
Thursday, January 20, 2005
Homeowners warming to copper's glow
TheStar.com
Once discarded as old technology and replaced by aluminum, copper is making a comeback as an accent feature of home exteriors.
From eavestroughs to cupolas, bay window flashings to roofing details, the warmth of copper adds that custom look and old-world craftsmanship to any home.
Once discarded as old technology and replaced by aluminum, copper is making a comeback as an accent feature of home exteriors.
From eavestroughs to cupolas, bay window flashings to roofing details, the warmth of copper adds that custom look and old-world craftsmanship to any home.
Labels: Copper
Australian Steel industry set for tougher 2005
Sydney Morning Herald
"Cheap imports, a softer construction market and higher input costs [are] likely to impact negatively on the Australian steel industry in 2005, a report says.
The first edition of Merrill Lynch's Australian Steel Industry Outlook said most local manufacturers were expected to have a tougher time in 2005."
"Cheap imports, a softer construction market and higher input costs [are] likely to impact negatively on the Australian steel industry in 2005, a report says.
The first edition of Merrill Lynch's Australian Steel Industry Outlook said most local manufacturers were expected to have a tougher time in 2005."
Steel Firm Learns To Bend With Market Shifts
Investor's Business Daily via Yahoo! Finance
Commercial Metals adapts to mercurial steel market conditions.
At its most basic level, the word "volatile" means "to evaporate quickly." When describing current steel market conditions, it means mercurial, changeable, flighty.
"You get these extraordinary changes, and you're not even sure why they happen," Rabin said. "Everyone tries to explain it, and the reality is that no one really knows."
Commercial Metals adapts to mercurial steel market conditions.
At its most basic level, the word "volatile" means "to evaporate quickly." When describing current steel market conditions, it means mercurial, changeable, flighty.
"You get these extraordinary changes, and you're not even sure why they happen," Rabin said. "Everyone tries to explain it, and the reality is that no one really knows."
Tuesday, January 18, 2005
Stand-downs loom over steel shortage
www.theage.com.au
Manufacturing workers face stand-downs due to steel shortages despite a return to work by Electrical Trades Union workers at BlueScope Steel's Hastings plant.
Appliance maker Rheem Australia was scheduled to stand down 320 workers next week for two weeks because it did not have enough steel to continue.
The general manager of Echuca-based gas-bottle maker Manchester Tank & Equipment, Mark Ingelfinger, said his operations had been affected by the steel shortage. He said that in a normal week the company, Australia's only gas-bottle maker, used 130 tonnes of steel. In the past four weeks (which included a two-week Christmas break), it had used only nine tonnes.
A steel industry source believed BlueScope had a backlog of 80,000 tonnes of steel as a result of the dispute.
Manufacturing workers face stand-downs due to steel shortages despite a return to work by Electrical Trades Union workers at BlueScope Steel's Hastings plant.
Appliance maker Rheem Australia was scheduled to stand down 320 workers next week for two weeks because it did not have enough steel to continue.
The general manager of Echuca-based gas-bottle maker Manchester Tank & Equipment, Mark Ingelfinger, said his operations had been affected by the steel shortage. He said that in a normal week the company, Australia's only gas-bottle maker, used 130 tonnes of steel. In the past four weeks (which included a two-week Christmas break), it had used only nine tonnes.
A steel industry source believed BlueScope had a backlog of 80,000 tonnes of steel as a result of the dispute.
Steel dispute to affect customers
ABC News via Yahoo! Australia & NZ News
BlueScope Steel says it will take months to resume regular supplies of steel products from a plant in Victoria that has been affected by a series of strikes.
The steel maker says electricians returned to work at the Western Port plant this morning.
"I think everyone's expectation is a bit like water in the water main, the tap gets turned on and water should flow," he said.
"But the way our products are produced, it's like the reservoir. We've actually got to fill the dam up again before products can flow to our customers and that will take months."
BlueScope Steel says it will take months to resume regular supplies of steel products from a plant in Victoria that has been affected by a series of strikes.
The steel maker says electricians returned to work at the Western Port plant this morning.
"I think everyone's expectation is a bit like water in the water main, the tap gets turned on and water should flow," he said.
"But the way our products are produced, it's like the reservoir. We've actually got to fill the dam up again before products can flow to our customers and that will take months."
Sunday, January 16, 2005
Steel magnolia blooms in the north
New Orleans Times-Picayune:
Great-grandmother is the tough-as-nails survivor of a factory culture
Forge a picture of a steelworker in your head.
Rugged. Gritty. Dirty.
Sound like your great-grandma?
At 78, Bonnie Rooks, a great-grandmother of three, claims to be the oldest steelworking woman in North America. Doubt her and you'll have a fight on your hands.
Great-grandmother is the tough-as-nails survivor of a factory culture
Forge a picture of a steelworker in your head.
Rugged. Gritty. Dirty.
Sound like your great-grandma?
At 78, Bonnie Rooks, a great-grandmother of three, claims to be the oldest steelworking woman in North America. Doubt her and you'll have a fight on your hands.
Evolving with the economy in steel country
MSNBC: PITTSBURGH - They still call it 'Steel City' even though steel is no longer king. It was steel that put food on the table in the Falavolito household. John, the patriarch, is 81. Joined by son, Bill, and grandson, Dean, these days the conversation at the table surrounds one topic.
"Eat some raviolis and watch the Steelers win the Super Bowl," says Dean.
They are the only NFL team named after the industry that built the city. The Steelers practice where a steel mill once stood. They represent the hopes and dreams of a tough town.
"Eat some raviolis and watch the Steelers win the Super Bowl," says Dean.
They are the only NFL team named after the industry that built the city. The Steelers practice where a steel mill once stood. They represent the hopes and dreams of a tough town.
World steel output expected to hit new record this year
Yahoo! News: Worldwide steel output, powered by robust Chinese economic momentum, is expected to hit a new record this year, but the dizzying surge in prices seen in 2004 should eventually spark resistance from consumers, the OECD has predicted.
Saturday, January 15, 2005
Climate Change: Government and Canadian Steel Industry Reach Agreement
Government of Canada: The Government of Canada, the Government of Ontario and the Canadian Steel Producers Association today signed a Memorandum of Understanding to work together to address climate change.
The agreement sets out short-term and longer-term plans for government and industry action to reduce greenhouse gas (GHG) emissions. The steel industry commits to doing its share to help Canada meet its climate change commitments, provided this does not undermine the competitiveness of the industry or result in an unfair burden. The Government of Canada will design emissions-reduction targets that reflect this commitment. It will also join forces with the industry to develop new low-emissions technologies by committing $300,000 to an international research effort.
The agreement sets out short-term and longer-term plans for government and industry action to reduce greenhouse gas (GHG) emissions. The steel industry commits to doing its share to help Canada meet its climate change commitments, provided this does not undermine the competitiveness of the industry or result in an unfair burden. The Government of Canada will design emissions-reduction targets that reflect this commitment. It will also join forces with the industry to develop new low-emissions technologies by committing $300,000 to an international research effort.
Friday, January 14, 2005
Wholesale Prices Plunge on Energy Costs
Yahoo! News: Prices at the wholesale level, helped by the largest drop in energy prices in 20 months, fell by 0.7 percent in December, the government reported Friday.
Thursday, January 13, 2005
Former Bethlehem Steel Workers Hear Latest Info on Health Claims
2 On Your Side: Former Bethlehem Steel workers heard the latest about their health claims Wednesday evening.
The National Institute for Occupational Safety and Health held a meeting to discuss results of their most recent study on the Bethlehem Steel site. Nine hundred workers at the former steel plant say they were exposed to nuclear material and got sick and had their benefit claims denied.
The National Institute for Occupational Safety and Health held a meeting to discuss results of their most recent study on the Bethlehem Steel site. Nine hundred workers at the former steel plant say they were exposed to nuclear material and got sick and had their benefit claims denied.
Tuesday, January 11, 2005
Retailers Raising Appliance Prices
I guess no one much in the industry is surprised by this ... Yahoo! News: [C]onsumers are facing higher prices for appliances with retailers raising prices this month to offset rising raw material costs.
"Commodity prices have risen and the cost from our suppliers has gone up," said Sears spokesman Ted McDougal. The increases "are pretty much across the country, but we're not treating them as permanent."
"Commodity prices have risen and the cost from our suppliers has gone up," said Sears spokesman Ted McDougal. The increases "are pretty much across the country, but we're not treating them as permanent."
Big spenders snap up platinum jeans
Platinum today: Platinum-encrusted designer jeans are the latest accessory for the fashion conscious in New York, according to reports.
Designer Calvin Stewart has unveiled his new A.P.O. jeans, which are decorated with platinum, gold and diamonds, at a cost of up to $4,000 each pair.
Designer Calvin Stewart has unveiled his new A.P.O. jeans, which are decorated with platinum, gold and diamonds, at a cost of up to $4,000 each pair.
Monday, January 10, 2005
Drug benefits coming for steel company retirees
Finally some good news on this front ...
Philadelphia Inquirer : Retirees who lost health-care benefits in four steel company bankruptcies will have a prescription drug benefit restored March 1.
The benefit will be available to United Steelworkers of America-covered retirees who were hourly workers at Bethlehem Steel in Pennsylvania, LTV Steel, Acme Steel, and Georgetown Steel.
Philadelphia Inquirer : Retirees who lost health-care benefits in four steel company bankruptcies will have a prescription drug benefit restored March 1.
The benefit will be available to United Steelworkers of America-covered retirees who were hourly workers at Bethlehem Steel in Pennsylvania, LTV Steel, Acme Steel, and Georgetown Steel.
Thursday, January 06, 2005
Novelis -- the New Global Leader in Aluminum Rolled Products
Press Release: Novelis Inc., the world's leading aluminum rolled products company was officially launched today as an independent company. Novelis, which will own and operate the majority of the former rolled products groups of Alcan Inc., was spun off to create a strong, independent company solely focused on serving aluminum rolled products markets.
Steel Demand To Send Coal, Iron Ore Prices Surging
AFP via Yahoo! UK & Ireland Finance: Coal and iron ore producers are expected to settle 2005/06 price negotiations early this year, locking in large price increases as the booming steel market soaks up the world's raw materials.
One of the world's biggest steel makers, Korean company Posco, has confirmed it will pay BHP Billiton Ltd and Rio Tinto Ltd, for high quality hard coking coal in the 12 months from April 2005, more than double what it paid in 2004/05.
One of the world's biggest steel makers, Korean company Posco, has confirmed it will pay BHP Billiton Ltd and Rio Tinto Ltd, for high quality hard coking coal in the 12 months from April 2005, more than double what it paid in 2004/05.
Sunday, January 02, 2005
China's steel peril may be oversupply
Myrtle Beach Online : China's steel peril may be oversupply - Rising exports, lower prices could have global effect
For much of the past two years, China has threatened to foster a world steel shortage with its prodigious appetite for imports of the metal. Now the country has become a net exporter, its domestic demand is slowing and steelmaking capacity is up around the world, sparking concern over global oversupply and tougher times for the industry in the years ahead.
Behind China's shift is a sharp slowdown in the growth of steel consumption at home combined with continued increases in production. As Beijing has worked to cool an overheated economy, the growth in domestic demand for steel recently has been rising only about 5 percent a month compared with year-earlier periods, after average monthly increases of 26 percent in 2002, 2003 and early 2004
For much of the past two years, China has threatened to foster a world steel shortage with its prodigious appetite for imports of the metal. Now the country has become a net exporter, its domestic demand is slowing and steelmaking capacity is up around the world, sparking concern over global oversupply and tougher times for the industry in the years ahead.
Behind China's shift is a sharp slowdown in the growth of steel consumption at home combined with continued increases in production. As Beijing has worked to cool an overheated economy, the growth in domestic demand for steel recently has been rising only about 5 percent a month compared with year-earlier periods, after average monthly increases of 26 percent in 2002, 2003 and early 2004
Steel costs to pinch auto parts makers
Detroit News - Autos Insider: U.S. suppliers' prices expected to rise 26% as demand from China doubles.
U.S. auto suppliers expect steel costs to increase an average of 26 percent in 2005 from this year while their ability to raises prices is hindered by automakers buying fewer products and refusing to pay higher costs, a survey showed.
'The question is when will steel prices return to normal and what will normal be,' said Mike Petro, of Arabia Inc. of Sunnyvale, Calif., which helps customers in purchasing decisions.
A ton of hot rolled steel, the industry benchmark, is expected to cost $630 next year compared with the average $350 a ton in 2003. Suppliers paid from $360 a ton to $580 during 2004.
Higher steel prices, coupled with planned production cutbacks by Ford Motor Co. and General Motors Corp., will force suppliers to look for other savings, analysts say. Alternatives may include cutting jobs and shifting production to nations with lower wages.
U.S. auto suppliers expect steel costs to increase an average of 26 percent in 2005 from this year while their ability to raises prices is hindered by automakers buying fewer products and refusing to pay higher costs, a survey showed.
'The question is when will steel prices return to normal and what will normal be,' said Mike Petro, of Arabia Inc. of Sunnyvale, Calif., which helps customers in purchasing decisions.
A ton of hot rolled steel, the industry benchmark, is expected to cost $630 next year compared with the average $350 a ton in 2003. Suppliers paid from $360 a ton to $580 during 2004.
Higher steel prices, coupled with planned production cutbacks by Ford Motor Co. and General Motors Corp., will force suppliers to look for other savings, analysts say. Alternatives may include cutting jobs and shifting production to nations with lower wages.
