Monday, February 28, 2005
Steel industry wants to keep monitoring imports
Belleville News-Democrat
Time is running out for the U.S. steel industry as it awaits an extension for an import monitoring program.
The Steel Monitoring and Analysis program was instituted in March 2002 when President Bush imposed Section 201 tariffs on some of the steel imported to the United States. The monitoring program provides direct funding for steel customs enforcement training and has expedited the import data-gathering process.
The program is set to expire March 20. Since President Bush announced the end of the Section 201 tariffs of some imported steel in December 2003, the Department of Commerce has not acted to make the Steel Monitoring and Analysis program permanent.
But public comment about the monitoring system the department requested in August revealed overwhelming support for it.
Time is running out for the U.S. steel industry as it awaits an extension for an import monitoring program.
The Steel Monitoring and Analysis program was instituted in March 2002 when President Bush imposed Section 201 tariffs on some of the steel imported to the United States. The monitoring program provides direct funding for steel customs enforcement training and has expedited the import data-gathering process.
The program is set to expire March 20. Since President Bush announced the end of the Section 201 tariffs of some imported steel in December 2003, the Department of Commerce has not acted to make the Steel Monitoring and Analysis program permanent.
But public comment about the monitoring system the department requested in August revealed overwhelming support for it.
Sunday, February 27, 2005
Manufacturers feel heat of skyrocketing steel prices
www.smh.com.au
The 71.5 per cent price rise achieved by iron ore producers this week was greeted with wonder and excitement by investors.
And, while it was good news for iron ore producers and their shareholders, the rest of us should be bracing for a dose of cost-of-living reality as those prices flow through the production chain.
Everything from hair clips to motor cars, clothes lines to refrigerators will be affected. Or, at least, they would be affected if the price rises were passed down the chain.
The iron ore producers and steel makers can raise prices almost at will. But the story is different as the metal gets closer to the price-sensitive customer.
Here price rises can become more a dream than a reality and there is already a lot of bleeding in the manufacturing sector which has not been staunched.
The price rises reflected a world shortage of steel over the past 18 months or more and the increasing competition for supplies of what has almost become a semi-precious metal.
Steel prices have been jumping at an alarming rate, with the most common industrial feedstock, hot rolled coil, rising from $US330 to $US630 a tonne in the past 14 months.
The pain has been obvious during this profit season. At least it was if companies could secure steel supplies.
"We have all been struggling, not just with prices, but a lack of availability," said Bruce Griffiths, chief executive of car parts maker Air International, a Futuris Corp subsidiary. "We have got full-time employees trying continually to source steel."
[emphasis mine ... Michael]
The 71.5 per cent price rise achieved by iron ore producers this week was greeted with wonder and excitement by investors.
And, while it was good news for iron ore producers and their shareholders, the rest of us should be bracing for a dose of cost-of-living reality as those prices flow through the production chain.
Everything from hair clips to motor cars, clothes lines to refrigerators will be affected. Or, at least, they would be affected if the price rises were passed down the chain.
The iron ore producers and steel makers can raise prices almost at will. But the story is different as the metal gets closer to the price-sensitive customer.
Here price rises can become more a dream than a reality and there is already a lot of bleeding in the manufacturing sector which has not been staunched.
The price rises reflected a world shortage of steel over the past 18 months or more and the increasing competition for supplies of what has almost become a semi-precious metal.
Steel prices have been jumping at an alarming rate, with the most common industrial feedstock, hot rolled coil, rising from $US330 to $US630 a tonne in the past 14 months.
The pain has been obvious during this profit season. At least it was if companies could secure steel supplies.
"We have all been struggling, not just with prices, but a lack of availability," said Bruce Griffiths, chief executive of car parts maker Air International, a Futuris Corp subsidiary. "We have got full-time employees trying continually to source steel."
[emphasis mine ... Michael]
Work to begin on museum at closed steel mill
WNEP 16
Roof work to begin next month at the former Bethlehem Steel plant is the first phase of creating a National Museum of Industrial History at the shut down mill.
The museum's board of directors announced a one-half (m) million dollar project yesterday (Friday) to rebuild the roof of the 92-year-old building that housed the steelmaker's electrical repair shop.
The president and chief executive officer of the Smithsonian-affiliated museum, Stephen Donches, says the decision shows a commitment to include the museum in the 879 (m) million dollar Bethlehem Works redevelopment project.
The development is expected to include shops, entertainment, apartments and possibly slot machines at the old plant.
The first phase of the museum construction, repairing the shop's roof and windows, is expected to take five months.
While that is going on museum officials are hoping to raise money to repair the rest of the exterior.
The final phase would be to renovate the interior and install exhibits.
Roof work to begin next month at the former Bethlehem Steel plant is the first phase of creating a National Museum of Industrial History at the shut down mill.
The museum's board of directors announced a one-half (m) million dollar project yesterday (Friday) to rebuild the roof of the 92-year-old building that housed the steelmaker's electrical repair shop.
The president and chief executive officer of the Smithsonian-affiliated museum, Stephen Donches, says the decision shows a commitment to include the museum in the 879 (m) million dollar Bethlehem Works redevelopment project.
The development is expected to include shops, entertainment, apartments and possibly slot machines at the old plant.
The first phase of the museum construction, repairing the shop's roof and windows, is expected to take five months.
While that is going on museum officials are hoping to raise money to repair the rest of the exterior.
The final phase would be to renovate the interior and install exhibits.
Saturday, February 26, 2005
U.S. steel imports fall 18 percent in January
MarketWatch
The United States imported 18 percent less steel in January than in December, according to a survey released Friday by the American Institute for International Steel.
"The AIIS monthly survey indicators have been suggesting somewhat of a fall-off from higher import months and these data could be the beginning of that trend," said AIIS president David Phelps.
Sharply higher steel prices over the past year have been blamed by U.S. manufacturers, like the auto parts industry, for lower profit margins and higher product prices.
The United States imported 18 percent less steel in January than in December, according to a survey released Friday by the American Institute for International Steel.
"The AIIS monthly survey indicators have been suggesting somewhat of a fall-off from higher import months and these data could be the beginning of that trend," said AIIS president David Phelps.
Sharply higher steel prices over the past year have been blamed by U.S. manufacturers, like the auto parts industry, for lower profit margins and higher product prices.
Thursday, February 24, 2005
Factory Orders Dip, Jobless Claims Rise
AP/Yahoo Biz
Orders to U.S. factories for big-ticket manufactured goods fell 0.9 percent in January, the worst showing in three months, as demand for commercial aircraft fell sharply, the government reported Thursday.
The weakness was led by a 27.1 percent plunge in orders for commercial aircraft.
The overall decline was larger than expected, but it followed two months of strong gains. Orders were up 1.4 percent in December after an even larger 2 percent rise in November.
Orders to U.S. factories for big-ticket manufactured goods fell 0.9 percent in January, the worst showing in three months, as demand for commercial aircraft fell sharply, the government reported Thursday.
The weakness was led by a 27.1 percent plunge in orders for commercial aircraft.
The overall decline was larger than expected, but it followed two months of strong gains. Orders were up 1.4 percent in December after an even larger 2 percent rise in November.
Wednesday, February 23, 2005
Japan to Monitor Prices of Steel Ore, Government Spokesman Says
Bloomberg.com
Japan will monitor prices of iron ore because increasing costs of the material may hurt the country's steel production, Chief Cabinet Secretary Hiroyuki Hosoda said.
Nippon Steel Corp. and JEF Holdings Inc. said they will pay Brazil's Cia. Vale do Rio Doce 71.5 percent more for iron ore starting April 1.
Japan will monitor prices of iron ore because increasing costs of the material may hurt the country's steel production, Chief Cabinet Secretary Hiroyuki Hosoda said.
Nippon Steel Corp. and JEF Holdings Inc. said they will pay Brazil's Cia. Vale do Rio Doce 71.5 percent more for iron ore starting April 1.
Sunday, February 20, 2005
Steel price surge not good for all
www.theage.com.au
Bluescope Steel's interim profit is expected to surge more than 50 per cent, thanks to world steel prices above $US600 a tonne for hot rolled coil, but the good news will not be evenly spread across the steel sector.
While BlueScope and scrap merchant Sims Group, another important player in world ferrous metal markets, will report boom results this week, those of Australia's other two steel makers, Smorgon and OneSteel, will be muted.
Both BlueScope and Sims are benefiting from rapid rises in world prices of their products - flat steel and scrap metal respectively - that are outstripping any increases in their input costs.
Unfortunately for Smorgon and, to a lesser extent, OneSteel, scrap metal and flat steel are both important inputs to their operations so, while BlueScope and Sims benefit, they tend to suffer as they struggle to pass on increased costs.
Bluescope Steel's interim profit is expected to surge more than 50 per cent, thanks to world steel prices above $US600 a tonne for hot rolled coil, but the good news will not be evenly spread across the steel sector.
While BlueScope and scrap merchant Sims Group, another important player in world ferrous metal markets, will report boom results this week, those of Australia's other two steel makers, Smorgon and OneSteel, will be muted.
Both BlueScope and Sims are benefiting from rapid rises in world prices of their products - flat steel and scrap metal respectively - that are outstripping any increases in their input costs.
Unfortunately for Smorgon and, to a lesser extent, OneSteel, scrap metal and flat steel are both important inputs to their operations so, while BlueScope and Sims benefit, they tend to suffer as they struggle to pass on increased costs.
Turning profit big hurdle for proposed SteelCorr mill
The Clarion-Ledger
On paper, the idea of a steel mill coming to Mississippi looks financially appealing.
SteelCorr Inc. would invest $650 million for construction on 1,400 acres of a 1,500-acre megasite in Columbus. Some 450 people would earn a $70,000 average annual salary plus benefits, and direct and indirect jobs could equal as many as 1,000.
But SteelCorr does face hurdles, according to some analysts. Its biggest one is turning a profit in an industry with high production costs.
Factoring equipment needed and investment to build such a facility, costs could be $900 million to $1.2 billion, said Peter Morici, an economist at the University of Maryland, who wrote a study about SteelCorr's prospect.
"How will (SteelCorr) build a $1 billon facility for $650 million?" asked Morici, a former director of economics for the U.S. International Trade Commission.
On paper, the idea of a steel mill coming to Mississippi looks financially appealing.
SteelCorr Inc. would invest $650 million for construction on 1,400 acres of a 1,500-acre megasite in Columbus. Some 450 people would earn a $70,000 average annual salary plus benefits, and direct and indirect jobs could equal as many as 1,000.
But SteelCorr does face hurdles, according to some analysts. Its biggest one is turning a profit in an industry with high production costs.
Factoring equipment needed and investment to build such a facility, costs could be $900 million to $1.2 billion, said Peter Morici, an economist at the University of Maryland, who wrote a study about SteelCorr's prospect.
"How will (SteelCorr) build a $1 billon facility for $650 million?" asked Morici, a former director of economics for the U.S. International Trade Commission.
Thursday, February 17, 2005
China blast comes after 2002 safety law change
Kansas City Star
China's worst reported mining disaster since communist rule began in 1949 came three years after officials had promised to overhaul the nation's workplace safety system.
In October 2002, the government created China's first safety laws and launched a nationwide effort that included workplace inspectors. Despite those efforts, deadly accidents have continued to plague the country's coal mines and factories.
Last year more than 6,000 miners died in fires, floods and explosions — an average of about 16 workers per day. The country accounts for 80 percent of the world's coal mining fatalities.
Experts say the new laws have not been matched with adequate education or enforcement. Many blame China's demand for coal and its booming economy for tempting mine owners and workers to cut safety corners.
China is the world's top producer of coal, with 1.9 billion tons extracted last year, 10 percent more than in 2003.
Fuxin is in one of China's oldest coal mining regions, and many of its mines have been depleted, according to state media reports. Miners must tunnel far underground to reach coal seams, and the risk of explosion due to methane gas is high.
Monday's disaster was the deadliest reported by the government since the 1949 communist revolution. Until the late 1990s, when the government regularly began announcing statistics on mining deaths, many industrial accidents were never disclosed.
China's worst reported mining disaster since communist rule began in 1949 came three years after officials had promised to overhaul the nation's workplace safety system.
In October 2002, the government created China's first safety laws and launched a nationwide effort that included workplace inspectors. Despite those efforts, deadly accidents have continued to plague the country's coal mines and factories.
Last year more than 6,000 miners died in fires, floods and explosions — an average of about 16 workers per day. The country accounts for 80 percent of the world's coal mining fatalities.
Experts say the new laws have not been matched with adequate education or enforcement. Many blame China's demand for coal and its booming economy for tempting mine owners and workers to cut safety corners.
China is the world's top producer of coal, with 1.9 billion tons extracted last year, 10 percent more than in 2003.
Fuxin is in one of China's oldest coal mining regions, and many of its mines have been depleted, according to state media reports. Miners must tunnel far underground to reach coal seams, and the risk of explosion due to methane gas is high.
Monday's disaster was the deadliest reported by the government since the 1949 communist revolution. Until the late 1990s, when the government regularly began announcing statistics on mining deaths, many industrial accidents were never disclosed.
20 years' wages likely for families of killed Chinese mine workers
The Standard
China plans to set up a common workers' compensation standard, granting up to 20 years' salary in the event of death or injury caused by a workplace accident determined to be entirely the fault of an employer.
The move is designed to make it prohibitively expensive for employers, particularly in the fatality-plagued mining and construction industries, to leave dangerous working conditions unremedied.
It would also encourage them to take out accident insurance on their staff, said Jing Bao, an official publication, quoting Cao Zongli, an official with the regulation department of the State Administration of Work Safety.
Though new regulations designed to foster workplace safety were introduced a year ago, many industries that depend on low-paid migrant workers still refuse to buy employee accident coverage.
On Monday, a fatal gas explosion killed 210 coal miners in Fuxin, Liaoning province. Their employer was said to have forced miners to sign a contract specifying maximum compensation of 20,000 yuan (HK$18,860) in the event of a fatal accident at work.
China plans to set up a common workers' compensation standard, granting up to 20 years' salary in the event of death or injury caused by a workplace accident determined to be entirely the fault of an employer.
The move is designed to make it prohibitively expensive for employers, particularly in the fatality-plagued mining and construction industries, to leave dangerous working conditions unremedied.
It would also encourage them to take out accident insurance on their staff, said Jing Bao, an official publication, quoting Cao Zongli, an official with the regulation department of the State Administration of Work Safety.
Though new regulations designed to foster workplace safety were introduced a year ago, many industries that depend on low-paid migrant workers still refuse to buy employee accident coverage.
On Monday, a fatal gas explosion killed 210 coal miners in Fuxin, Liaoning province. Their employer was said to have forced miners to sign a contract specifying maximum compensation of 20,000 yuan (HK$18,860) in the event of a fatal accident at work.
Tuesday, February 15, 2005
New Study Finds Government Support for Steel Damages Auto Suppliers
American International Automobile Dealers
The skyrocketing cost of steel -- bolstered by government supports -- is the leading cause of a crisis among U.S. auto suppliers that has lead to bankruptcies and job losses not seen in decades. These are the findings of a new study commissioned by the Motor & Equipment Manufacturers Association
The skyrocketing cost of steel -- bolstered by government supports -- is the leading cause of a crisis among U.S. auto suppliers that has lead to bankruptcies and job losses not seen in decades. These are the findings of a new study commissioned by the Motor & Equipment Manufacturers Association
Monday, February 14, 2005
China Mine Accident Kills More Than 200
Yahoo! News
A gas explosion in a coal mine in China's northeastern province of Liaoning has killed as many as 203 miners in the worst disaster to hit the country's disaster-plagued mining industry in at least 15 years.
China's mining industry is the world's biggest and its most deadly.
China's coal mines, which provide the main fuel for the world's seventh-biggest economy, have an appalling safety record underscored by a series of major accidents last year, several within days of each other at the end of the year.
Last year, at least 5,000 people were killed in mining accidents.
China last year produced 35 percent of the world's coal but reported 80 percent of global deaths in colliery accidents at a rate of three fatalities per million tons of coal.
The average Chinese miner produced 321 tons of coal -- just 2.2 percent of what a miner in the more mechanized United States produced and 8.1 percent of what a miner in South Africa produced.
But the death rate in Chinese mines is 100 times that of U.S. mines and 30 times that of South African mines
A gas explosion in a coal mine in China's northeastern province of Liaoning has killed as many as 203 miners in the worst disaster to hit the country's disaster-plagued mining industry in at least 15 years.
China's mining industry is the world's biggest and its most deadly.
China's coal mines, which provide the main fuel for the world's seventh-biggest economy, have an appalling safety record underscored by a series of major accidents last year, several within days of each other at the end of the year.
Last year, at least 5,000 people were killed in mining accidents.
China last year produced 35 percent of the world's coal but reported 80 percent of global deaths in colliery accidents at a rate of three fatalities per million tons of coal.
The average Chinese miner produced 321 tons of coal -- just 2.2 percent of what a miner in the more mechanized United States produced and 8.1 percent of what a miner in South Africa produced.
But the death rate in Chinese mines is 100 times that of U.S. mines and 30 times that of South African mines
Chinese coal mine blast kills 25 dead, many trapped underground
Radio Australia
At least 25 miners have been killed and 194 others are believed to be trapped underground, after a gas explosion at a coal mine in northeastern China.
Chinese state media reports another 19 miners have been injured in the blast in Fuxin city.
Mining accidents and fatalities are an almost daily occurrence in China.
China's coal industry is the most dangerous in the world, with more than 6,000 workers dying in mining accidents last year.
The Chinese Premier, Wen Jiabao, ordered better work safety conditions during a visit last month to a coal mine where 166 miners died in November.
At least 25 miners have been killed and 194 others are believed to be trapped underground, after a gas explosion at a coal mine in northeastern China.
Chinese state media reports another 19 miners have been injured in the blast in Fuxin city.
Mining accidents and fatalities are an almost daily occurrence in China.
China's coal industry is the most dangerous in the world, with more than 6,000 workers dying in mining accidents last year.
The Chinese Premier, Wen Jiabao, ordered better work safety conditions during a visit last month to a coal mine where 166 miners died in November.
ThyssenKrupp Net Income Almost Triples on Steel Price
Bloomberg.com: Germany
ThyssenKrupp AG, Europe's fourth- largest steelmaker, said profit almost tripled in the fiscal first quarter as the company sold more steel at higher prices.
Demand for ThyssenKrupp's products, which range from extra- light steel for car bodies to elevators, has ``notably increased in an overall favorable economic environment,'' ThyssenKrupp said in the statement. ``The boom on the international steel market will continue this year.''
ThyssenKrupp AG, Europe's fourth- largest steelmaker, said profit almost tripled in the fiscal first quarter as the company sold more steel at higher prices.
Demand for ThyssenKrupp's products, which range from extra- light steel for car bodies to elevators, has ``notably increased in an overall favorable economic environment,'' ThyssenKrupp said in the statement. ``The boom on the international steel market will continue this year.''
Auto industry travels rocky road
Business First of Louisville
Tower, Budd struggles are in line with national trends
Rising steel prices, higher benefits costs and lower automobile production volumes are starting to catch up with the parent companies of area automotive stamping suppliers.
Novi, Mich.-based Tower Automotive, which has two plants near Louisville, filed for Chapter 11 protection in U.S. Bankruptcy Court on Feb. 2. In its filing, the company cited the rising steel costs and lower production volumes for its financial difficulties.
Tower estimated that the average per-ton cost of hot rolled-coil steel produced in the United States and used in auto-parts production increased 120 percent between October 2003 and October 2004.
The industry's difficulties hit home again on Feb. 7, when about 800 UAW workers at Tower competitor ThyssenKrupp Budd Co. in Shelbyville went on strike, lobbying for a new contract.
ThyssenKrupp Budd asked workers for $10 million in concessions, including cutting pay by $5 an hour, a $160-a-month increase in health care premiums, and elimination of retiree health care benefits and cost-of-living adjustments, said Local 2383 President Dennis Wcisel.
Workers currently make $20 an hour, and they pay $40 a month for health insurance premiums.
Under a tentative agreement reached Feb. 8, the union did not give any concessions, Wcisel said. A ratification vote is scheduled for Feb. 13.
"I think you're going to see the situation get worse before it gets better," said Bill Rinna, manager of North American component forecasts for Detroit-based automotive forecasting and consulting company CSM Worldwide.
Rinna said ThyssenKrupp Budd is in a better position than Tower because it makes its own steel. But he believes both companies are traveling a rocky road.
Rinna explained that because the market is so competitive, automakers aren't willing to pay more for suppliers' components because that would increase vehicle prices. But the smaller suppliers need to charge more in order to offset the increased cost of raw materials.
"I think there are a few manufacturers who are starting to see the light at the end of the tunnel," Rinna said. "But you'll find that many of the steel-based and plastic manufacturers are struggling. So many of these costs are being passed on to these suppliers that it has them on the verge of bankruptcy."
Suppliers expected to bounce back
Although the automotive industry is in flux, longtime observers, including Wcisel and Mazar, believe a correction is imminent, and CSM Worldwide data supports their prediction.
Rinna said an increase in new product offerings, higher consumer incomes, more affordable automobiles and an expanding driving population will help boost production over the next three or four years.
North American automobile production, which declined to 15.8 million units in 2004 from 15.9 million in 2005, is projected to increase to 16 million this year and peak at 17 million by 2008.
"I think the auto-stamping industry is very strong because a lot of transplants are coming into the country, and they need the services," Wcisel said.
Even supplier production jobs that have been lost to Mexico and China over the past few years could follow new import automakers to the United States, Mazar speculated.
"They will run out of cheap labor and move production to the U.S., where it can be done largely through automation," Mazar said. "Granted, that won't produce as many jobs, but there will still be a need for skilled people. We haven't seen conditions this bad in the industry before, but it still has a good future here."
Tower, Budd struggles are in line with national trends
Rising steel prices, higher benefits costs and lower automobile production volumes are starting to catch up with the parent companies of area automotive stamping suppliers.
Novi, Mich.-based Tower Automotive, which has two plants near Louisville, filed for Chapter 11 protection in U.S. Bankruptcy Court on Feb. 2. In its filing, the company cited the rising steel costs and lower production volumes for its financial difficulties.
Tower estimated that the average per-ton cost of hot rolled-coil steel produced in the United States and used in auto-parts production increased 120 percent between October 2003 and October 2004.
The industry's difficulties hit home again on Feb. 7, when about 800 UAW workers at Tower competitor ThyssenKrupp Budd Co. in Shelbyville went on strike, lobbying for a new contract.
ThyssenKrupp Budd asked workers for $10 million in concessions, including cutting pay by $5 an hour, a $160-a-month increase in health care premiums, and elimination of retiree health care benefits and cost-of-living adjustments, said Local 2383 President Dennis Wcisel.
Workers currently make $20 an hour, and they pay $40 a month for health insurance premiums.
Under a tentative agreement reached Feb. 8, the union did not give any concessions, Wcisel said. A ratification vote is scheduled for Feb. 13.
"I think you're going to see the situation get worse before it gets better," said Bill Rinna, manager of North American component forecasts for Detroit-based automotive forecasting and consulting company CSM Worldwide.
Rinna said ThyssenKrupp Budd is in a better position than Tower because it makes its own steel. But he believes both companies are traveling a rocky road.
Rinna explained that because the market is so competitive, automakers aren't willing to pay more for suppliers' components because that would increase vehicle prices. But the smaller suppliers need to charge more in order to offset the increased cost of raw materials.
"I think there are a few manufacturers who are starting to see the light at the end of the tunnel," Rinna said. "But you'll find that many of the steel-based and plastic manufacturers are struggling. So many of these costs are being passed on to these suppliers that it has them on the verge of bankruptcy."
Suppliers expected to bounce back
Although the automotive industry is in flux, longtime observers, including Wcisel and Mazar, believe a correction is imminent, and CSM Worldwide data supports their prediction.
Rinna said an increase in new product offerings, higher consumer incomes, more affordable automobiles and an expanding driving population will help boost production over the next three or four years.
North American automobile production, which declined to 15.8 million units in 2004 from 15.9 million in 2005, is projected to increase to 16 million this year and peak at 17 million by 2008.
"I think the auto-stamping industry is very strong because a lot of transplants are coming into the country, and they need the services," Wcisel said.
Even supplier production jobs that have been lost to Mexico and China over the past few years could follow new import automakers to the United States, Mazar speculated.
"They will run out of cheap labor and move production to the U.S., where it can be done largely through automation," Mazar said. "Granted, that won't produce as many jobs, but there will still be a need for skilled people. We haven't seen conditions this bad in the industry before, but it still has a good future here."
Saturday, February 12, 2005
Steel workers to reap rewards
Northwest Indiana News: nwitimes.com
U.S. Steel Corp., which had record fourth-quarter profits of $462 million, is expected to distribute profit sharing checks of about $3,259.20 to USWA members, said Michael Mitchell, president of Local 1014 at U.S. Steel Corp.'s Gary Works.
U.S. Steel Corp., which had record fourth-quarter profits of $462 million, is expected to distribute profit sharing checks of about $3,259.20 to USWA members, said Michael Mitchell, president of Local 1014 at U.S. Steel Corp.'s Gary Works.
Mississippi Lawmaker says $75M loan part of incentive package for steel mill
The Clarion-Ledger
Mississippi would guarantee a $75 million loan and offer $25 million in grants as part of an incentive package to lure a steel mill to Lowndes County, a lawmaker told The Associated Press today.
It is unclear when company officials will announce their choice of a site. SteelCorr also viewed a site in Osceola, Ark., though it is unclear if the land there is still a contender.
The mill would employ about 500 workers. Production workers are guaranteed at least a $70,000 salary, Smith said, adding that he would handle the incentive legislation in the House.
Smith said there's a provision in the bill that the work force must reflect the region's diversity, which he said is 34 percent black.
Mississippi would guarantee a $75 million loan and offer $25 million in grants as part of an incentive package to lure a steel mill to Lowndes County, a lawmaker told The Associated Press today.
It is unclear when company officials will announce their choice of a site. SteelCorr also viewed a site in Osceola, Ark., though it is unclear if the land there is still a contender.
The mill would employ about 500 workers. Production workers are guaranteed at least a $70,000 salary, Smith said, adding that he would handle the incentive legislation in the House.
Smith said there's a provision in the bill that the work force must reflect the region's diversity, which he said is 34 percent black.
Credit Suisse First Boston adds shine to steel maker Corus
Independent
[I]f you believe the Swiss broker, there is more upside to come. 'Calling the top of the steel cycle would appear to be premature. In our view, we could be about to pass through the trough of a mini-cycle in the US and Europe, with the best still to come,' it said.
Although many in the investment community expect steel prices to start to fall during the second half of the year, the broker is convinced this will not happen. CSFB said: 'Steel prices collapse when the export market is deeply liquid, triggered by a global de-stocking or a major regional crisis. We see neither of these on the horizon'.
Also supporting Corus yesterday were ultra-bullish comments from the management of its peer ThyssenKrupp. Jost Massenberg, an executive at the German group, told a German newspaper that he expects steel prices to rise sharply in the coming months and indicated that such is the demand the company faces for its products at present that it is struggling to satisfy it.
[I]f you believe the Swiss broker, there is more upside to come. 'Calling the top of the steel cycle would appear to be premature. In our view, we could be about to pass through the trough of a mini-cycle in the US and Europe, with the best still to come,' it said.
Although many in the investment community expect steel prices to start to fall during the second half of the year, the broker is convinced this will not happen. CSFB said: 'Steel prices collapse when the export market is deeply liquid, triggered by a global de-stocking or a major regional crisis. We see neither of these on the horizon'.
Also supporting Corus yesterday were ultra-bullish comments from the management of its peer ThyssenKrupp. Jost Massenberg, an executive at the German group, told a German newspaper that he expects steel prices to rise sharply in the coming months and indicated that such is the demand the company faces for its products at present that it is struggling to satisfy it.
Head of Russian steel maker MMK plans to resign
Reuters via Yahoo! Asia News
Viktor Rashnikov, one of Russia's most influential industrialists, will resign as head of domestic steel producer MMK but remain with the company to shape its strategic policy, Rashnikov said on Friday.
Viktor Rashnikov, one of Russia's most influential industrialists, will resign as head of domestic steel producer MMK but remain with the company to shape its strategic policy, Rashnikov said on Friday.
Friday, February 11, 2005
Workplace accidents down, but more deaths
After reading the article about a workplace accident in a steel mill, I got curious about the Chinese workplace safety record. I couldn't find much that was current and on point. This article, from April of 2004, was interesting. Accidents were down, but more deaths resulted from the smaller number of accidents. The numbers are large, but you have to factor in the total population of China is also large.
China Daily.com (english edition)
Although total accidents were 4.1 per cent lower than the same period of last year, the death toll climbed 2.4 per cent.
He attributed the situation to the country's continuous safety inspections, specialized rectifications and the building of a legal system on workplace safety.
Major accidents and deaths were reported from road traffic accidents, coal mines or other industrial sector incidents, trade and commercial enterprise accidents, fires and waterways and railway traffic incidents, according to statistics.
Road traffic accidents remain the top killer, with 30,733 people killed in 167,463 reported cases. Such deaths and accidents accounted for 80.5 per cent and 58.2 per cent of the country's total, respectively, over the past four months.
Coal-related deaths dropped 25 per cent during January-April period with 1,267 deaths reported in 854 registered cases. The total output of coal was up 19 per cent up over the same period the previous year.
Fortunately, extremely serious accidents -- each with a death toll of more than 30 people --dropped.
However, following soaring prices and an increasing domestic demand for chemical products, more serious accidents took place over the past few weeks in that field due to outdated technology, ageing facilities and poor management.
Nine people were killed by a blowout involving chemical products in a factory in Southwest China's Chongqing municipality on April 16.
Three workers were poisoned to death in Maoming, in South China's Guangdong Province, on April 19 after chemicals leaked at a local refinery.
'Such accidents resulted in 23 deaths, the poisonings of 300 others and more than 150,000 people had to be evacuated during emergency operations from April 16 to 24, shocking all of society,' Wang [Xianzheng, an official of the State Administration of Work Safety] disclosed.
The same issue of China Daily had some other interesting safety related articles:
Road accidents kill 300 a day in China
Latest research shows that every day in China at least 300 people are killed in traffic accidents, ranking the country top in the world for both the death toll and the death rate. And the figure is accelerating by 10 per cent every year.
"It was a little ironic as the overall number of vehicles in China is far smaller than that in Western countries, while the death rate from road accidents is much higher," said an academic surnamed Wang who was quoted in the China Youth Daily.
"According to our research, the death toll and death rate per 10,000 automobiles here is eight times more than that in America," he said.
The most important factor was still the negligence of drivers. Statistics showed that last year some 78.5 per cent of the deaths, about 86,000 people, were caused by improper driving.
Punishment for negligent drivers is said to be too lenient due to a failure of the relevant laws to catch up with current conditions.
But they do seem to be cracking down on enforcement officials who are slacking off at their posts ... In April they published this article
Official sacked for accidents
A deputy commissioner in Shanxi Province was sacked after coal mining accidents that killed 141 and caused millions of yuan in damages in 2002 and 2003.
According to a report in Sunday's Shanxi Daily, he showed poor leadership in allowing illegal coal mines operations. He was in charge of safety at coal mines and was also the former director of the area's Work Safety Committee.
Several months earlier, they had set a goal, still awfully weak sounding to me, but I'm no mining expert.
China aims to cut coal mine death toll by 30 percent by 2007
China has set the target of lowering the death toll in coal mine accidents from 7,000 a year at present to 5,000 by 2007.
But it doesn't seem to be working. Check out this article in December 2004:
China's mining sector sounds the alarm
An explosion at Chenjiashan Coal Mine in the northwestern province of Shaanxi on November 28 and a gas explosion in a Guizhou mine in Southwest China on December 1 once again added to China's dismal safety record in the mining industry.
The death toll in Sunday's gas blast has reached 166, making it the worst since a September 2000 explosion at Muchonggou Coal Mine in Guizhou Province claimed 162 lives.
China's coal mines have been haunted by death. On October 20 a deadly gas blast in Daping of central Henan Province killed 148.
In the first nine months of this year, 4,153 coal miners were killed in fires, explosions, floods or other disasters, statistics from the State Administration of Work Safety show.
The administration said China reported 80 per cent of the world's total coal mining-related deaths, although it produced only 35 per cent of the world's coal.
In fact, the staggering number of coal mining accidents and deaths represent only part of the serious work safety problems in the world's most populous nation.
China has seen an annual average of about 1 million industrial accidents since 2001, according to the State Administration of Work Safety, with nearly 140,000 deaths each year.
Economic losses incurred in the accidents are estimated to top US$180 billion annually, according to Luo Yun, a researcher at the Chinese University of Geology.
The professor, director of the university's Work Safety Research Centre, long warned against a sharp rise in workplace accidents amid China's fast economic growth.
"That's because the contradiction between China's booming economy and its weak production safety foundation is going to the extreme," he said.
And, of course, mining is where steel begins, both for iron ore and for coal. So this is very much tied up in the steel business.
I especially found this part, later in the same article, to be of interest.
What is to blame?
Media commentator Li Wangang said the industrial development history of Western countries should not be used to justify China's high frequency of workplace accidents at present.
"As a developing country, China should have learned lessons from developed nations and thus does not need to relive their painful experiences," he said.
Luo went further to stress that in theory all workplace accidents are technical risks and can be prevented through adequate precautionary measures.
But unfortunately, there has been rampant negligence of work safety around the country, says Zhang Baoming, former director of the State Administration of Work Safety.
He said almost all industrial accidents in China were caused by human errors, except a few that resulted from natural factors.
Zhang points to widespread practices of being preoccupied with economic growth while disregarding the life and health of labourers, the government's lax supervision on safety as well as poor enforcement of related laws and regulations.
"If unchecked, the upward spiral in workplace accidents will not only cause great damage to our society but also pose a grave test to social justice and government credibility," says Zhang, now a member of the National Committee of the Chinese People's Political Consultative Conference.
The recent series of accidents have drawn particular attention as market demand for coal continues to soar in China.
As the Chinese economy grows at full steam, there has been a dire need for coal, which supplies two-thirds of the country's total energy and generates 80 per cent of its electricity.
Work safety experts say increased production has forced coal mines to their maximum capacity, triggering more potential risks.
China Daily.com (english edition)
Although total accidents were 4.1 per cent lower than the same period of last year, the death toll climbed 2.4 per cent.
He attributed the situation to the country's continuous safety inspections, specialized rectifications and the building of a legal system on workplace safety.
Major accidents and deaths were reported from road traffic accidents, coal mines or other industrial sector incidents, trade and commercial enterprise accidents, fires and waterways and railway traffic incidents, according to statistics.
Road traffic accidents remain the top killer, with 30,733 people killed in 167,463 reported cases. Such deaths and accidents accounted for 80.5 per cent and 58.2 per cent of the country's total, respectively, over the past four months.
Coal-related deaths dropped 25 per cent during January-April period with 1,267 deaths reported in 854 registered cases. The total output of coal was up 19 per cent up over the same period the previous year.
Fortunately, extremely serious accidents -- each with a death toll of more than 30 people --dropped.
However, following soaring prices and an increasing domestic demand for chemical products, more serious accidents took place over the past few weeks in that field due to outdated technology, ageing facilities and poor management.
Nine people were killed by a blowout involving chemical products in a factory in Southwest China's Chongqing municipality on April 16.
Three workers were poisoned to death in Maoming, in South China's Guangdong Province, on April 19 after chemicals leaked at a local refinery.
'Such accidents resulted in 23 deaths, the poisonings of 300 others and more than 150,000 people had to be evacuated during emergency operations from April 16 to 24, shocking all of society,' Wang [Xianzheng, an official of the State Administration of Work Safety] disclosed.
The same issue of China Daily had some other interesting safety related articles:
Road accidents kill 300 a day in China
Latest research shows that every day in China at least 300 people are killed in traffic accidents, ranking the country top in the world for both the death toll and the death rate. And the figure is accelerating by 10 per cent every year.
"It was a little ironic as the overall number of vehicles in China is far smaller than that in Western countries, while the death rate from road accidents is much higher," said an academic surnamed Wang who was quoted in the China Youth Daily.
"According to our research, the death toll and death rate per 10,000 automobiles here is eight times more than that in America," he said.
The most important factor was still the negligence of drivers. Statistics showed that last year some 78.5 per cent of the deaths, about 86,000 people, were caused by improper driving.
Punishment for negligent drivers is said to be too lenient due to a failure of the relevant laws to catch up with current conditions.
But they do seem to be cracking down on enforcement officials who are slacking off at their posts ... In April they published this article
Official sacked for accidents
A deputy commissioner in Shanxi Province was sacked after coal mining accidents that killed 141 and caused millions of yuan in damages in 2002 and 2003.
According to a report in Sunday's Shanxi Daily, he showed poor leadership in allowing illegal coal mines operations. He was in charge of safety at coal mines and was also the former director of the area's Work Safety Committee.
Several months earlier, they had set a goal, still awfully weak sounding to me, but I'm no mining expert.
China aims to cut coal mine death toll by 30 percent by 2007
China has set the target of lowering the death toll in coal mine accidents from 7,000 a year at present to 5,000 by 2007.
But it doesn't seem to be working. Check out this article in December 2004:
China's mining sector sounds the alarm
An explosion at Chenjiashan Coal Mine in the northwestern province of Shaanxi on November 28 and a gas explosion in a Guizhou mine in Southwest China on December 1 once again added to China's dismal safety record in the mining industry.
The death toll in Sunday's gas blast has reached 166, making it the worst since a September 2000 explosion at Muchonggou Coal Mine in Guizhou Province claimed 162 lives.
China's coal mines have been haunted by death. On October 20 a deadly gas blast in Daping of central Henan Province killed 148.
In the first nine months of this year, 4,153 coal miners were killed in fires, explosions, floods or other disasters, statistics from the State Administration of Work Safety show.
The administration said China reported 80 per cent of the world's total coal mining-related deaths, although it produced only 35 per cent of the world's coal.
In fact, the staggering number of coal mining accidents and deaths represent only part of the serious work safety problems in the world's most populous nation.
China has seen an annual average of about 1 million industrial accidents since 2001, according to the State Administration of Work Safety, with nearly 140,000 deaths each year.
Economic losses incurred in the accidents are estimated to top US$180 billion annually, according to Luo Yun, a researcher at the Chinese University of Geology.
The professor, director of the university's Work Safety Research Centre, long warned against a sharp rise in workplace accidents amid China's fast economic growth.
"That's because the contradiction between China's booming economy and its weak production safety foundation is going to the extreme," he said.
And, of course, mining is where steel begins, both for iron ore and for coal. So this is very much tied up in the steel business.
I especially found this part, later in the same article, to be of interest.
What is to blame?
Media commentator Li Wangang said the industrial development history of Western countries should not be used to justify China's high frequency of workplace accidents at present.
"As a developing country, China should have learned lessons from developed nations and thus does not need to relive their painful experiences," he said.
Luo went further to stress that in theory all workplace accidents are technical risks and can be prevented through adequate precautionary measures.
But unfortunately, there has been rampant negligence of work safety around the country, says Zhang Baoming, former director of the State Administration of Work Safety.
He said almost all industrial accidents in China were caused by human errors, except a few that resulted from natural factors.
Zhang points to widespread practices of being preoccupied with economic growth while disregarding the life and health of labourers, the government's lax supervision on safety as well as poor enforcement of related laws and regulations.
"If unchecked, the upward spiral in workplace accidents will not only cause great damage to our society but also pose a grave test to social justice and government credibility," says Zhang, now a member of the National Committee of the Chinese People's Political Consultative Conference.
The recent series of accidents have drawn particular attention as market demand for coal continues to soar in China.
As the Chinese economy grows at full steam, there has been a dire need for coal, which supplies two-thirds of the country's total energy and generates 80 per cent of its electricity.
Work safety experts say increased production has forced coal mines to their maximum capacity, triggering more potential risks.
US suppliers applaud congressional resolution on steel import tariffs
Industry News - News & Events - Auto Industry
The Motor & Equipment Manufacturers Association (MEMA) this week commended Rep. Joseph Knollenberg (R-Mich.) for his introduction in the House of Representatives HR 84, a resolution calling on the International Trade Commission to consider - and report on - the impact of US ?antidumping? duties on steel-consuming manufacturers. These are imposed by the US on products from countries covered by antidumping or countervailing duty orders.
'Decreased availability, reduced quality, delayed deliveries and artificially high steel prices have been a leading cause of job losses and even bankruptcies among auto suppliers,' said Ann Wilson, MEMA vice president of government affairs. 'We believe the duties that will be reviewed by the ITC have created distortions in the market and are no longer necessary given the health of the domestic steel industry, and we're delighted that Congressman Knollenberg has called attention to the importance of the hearings.'
The Motor & Equipment Manufacturers Association (MEMA) this week commended Rep. Joseph Knollenberg (R-Mich.) for his introduction in the House of Representatives HR 84, a resolution calling on the International Trade Commission to consider - and report on - the impact of US ?antidumping? duties on steel-consuming manufacturers. These are imposed by the US on products from countries covered by antidumping or countervailing duty orders.
'Decreased availability, reduced quality, delayed deliveries and artificially high steel prices have been a leading cause of job losses and even bankruptcies among auto suppliers,' said Ann Wilson, MEMA vice president of government affairs. 'We believe the duties that will be reviewed by the ITC have created distortions in the market and are no longer necessary given the health of the domestic steel industry, and we're delighted that Congressman Knollenberg has called attention to the importance of the hearings.'
Chinese steel factory explosion kills 10
In all the discussions, ethical, moral and economic, about outsourcing, this sort of thing gets little or no discussion ... the kicker is in the last sentence.
Yahoo Asia
Ten people were killed in China when molten iron leaked from the bottom of a smelting furnace and sparked a steel factory explosion, the government said Friday.
Twenty-four people were working in the Zhaoxin Metallurgical Ltd. steel factory [...]when the accident occurred Wednesday [...].
Seven people were killed instantly and three died later in the hospital.
China has a dismal workplace safety record, with accidents at work killing 98,809 people between January and September last year, according to the latest government statistics.
Yahoo Asia
Ten people were killed in China when molten iron leaked from the bottom of a smelting furnace and sparked a steel factory explosion, the government said Friday.
Twenty-four people were working in the Zhaoxin Metallurgical Ltd. steel factory [...]when the accident occurred Wednesday [...].
Seven people were killed instantly and three died later in the hospital.
China has a dismal workplace safety record, with accidents at work killing 98,809 people between January and September last year, according to the latest government statistics.
Thursday, February 10, 2005
Algoma Steel drops out of bidding war for Stelco; posts soaring of Q4 profits
Yahoo! News
Algoma Steel Inc. has dropped out of the bidding war for restructuring Stelco Inc., citing 'too many risks and obligations' associated with a potential takeover of the Hamilton steel giant.
The northern Ontario company announced late Wednesday it was withdrawing from the process to refinance or take over Stelco, just a few days before a deadline next Monday for formal bids.
At the same time, Algoma reported fourth-quarter profits that were 10 times what the steelmaker earned in the same 2003 period. Algoma emerged from its own bankruptcy court restructuring in 2001, the second time it did so in its long history.
Algoma did not specify what obligations would be required of the company if it managed to take over Stelco, though the United Steelworkers have been clear that the union wants any potential buyer to address a $1-billion-plus deficit in workers' pension plans.
Algoma has been engaged since mid-December in a due diligence review of Stelco's operations and in discussions with the Hamilton company and the union.
"Algoma's due diligence has confirmed that there are significant potential benefits in a combination of Algoma and Stelco, but given the risks and obligations associated with the acquisition, we have concluded that proceeding with the transaction would not be in the best interests of our shareholders," Algoma CEO Denis Turcotte said in a statement after stock markets closed.
Algoma Steel Inc. has dropped out of the bidding war for restructuring Stelco Inc., citing 'too many risks and obligations' associated with a potential takeover of the Hamilton steel giant.
The northern Ontario company announced late Wednesday it was withdrawing from the process to refinance or take over Stelco, just a few days before a deadline next Monday for formal bids.
At the same time, Algoma reported fourth-quarter profits that were 10 times what the steelmaker earned in the same 2003 period. Algoma emerged from its own bankruptcy court restructuring in 2001, the second time it did so in its long history.
Algoma did not specify what obligations would be required of the company if it managed to take over Stelco, though the United Steelworkers have been clear that the union wants any potential buyer to address a $1-billion-plus deficit in workers' pension plans.
Algoma has been engaged since mid-December in a due diligence review of Stelco's operations and in discussions with the Hamilton company and the union.
"Algoma's due diligence has confirmed that there are significant potential benefits in a combination of Algoma and Stelco, but given the risks and obligations associated with the acquisition, we have concluded that proceeding with the transaction would not be in the best interests of our shareholders," Algoma CEO Denis Turcotte said in a statement after stock markets closed.
Labels: stelco
Monday, February 07, 2005
Rise of China changing way S. Florida, U.S. live and work
Maimi Herald
If you could peek inside an 18-wheeler barreling out of Miami's seaport these days, you would more likely find goods from a Chinese factory than from Brazil, the Dominican Republic, Colombia or Venezuela -- traditionally considered the port's top trading partners.
Buying a hair dryer or an electric toaster? You'd be hard-pressed to find one in American stores that isn't made in China. About 92 percent of the toasters sold in the United States and 82 percent of the hair dryers come from China, along with the bulk of laptop computers and athletic shoes, and just about every fourth item of clothing.
Whether you are a consumer embracing cheap Chinese goods, an executive rushing to cash in on the Chinese boom, or a domestic manufacturer fighting Chinese competition, it is becoming clear that the country of 1.3 billion people is changing the rules of global commerce, and with them the American way of life.
''In 2000, China just wasn't on our radar screen,'' said Brian Neff, vice president of the South Florida Manufacturers Association. ``Today, it's global, global, global. Big-time shifts are happening.''
For some local businesses, the ascendancy of China as an economic superpower is a source of anxiety.
''They scare me to death on everything,'' said Leon Silverstein, president and chief executive of Tamarac-based Arch Aluminum & Glass Co., a family-owned firm whose custom-designed windows and storefronts remain competitive despite the rising tide of Chinese glass and mirror imports.
If you could peek inside an 18-wheeler barreling out of Miami's seaport these days, you would more likely find goods from a Chinese factory than from Brazil, the Dominican Republic, Colombia or Venezuela -- traditionally considered the port's top trading partners.
Buying a hair dryer or an electric toaster? You'd be hard-pressed to find one in American stores that isn't made in China. About 92 percent of the toasters sold in the United States and 82 percent of the hair dryers come from China, along with the bulk of laptop computers and athletic shoes, and just about every fourth item of clothing.
Whether you are a consumer embracing cheap Chinese goods, an executive rushing to cash in on the Chinese boom, or a domestic manufacturer fighting Chinese competition, it is becoming clear that the country of 1.3 billion people is changing the rules of global commerce, and with them the American way of life.
''In 2000, China just wasn't on our radar screen,'' said Brian Neff, vice president of the South Florida Manufacturers Association. ``Today, it's global, global, global. Big-time shifts are happening.''
For some local businesses, the ascendancy of China as an economic superpower is a source of anxiety.
''They scare me to death on everything,'' said Leon Silverstein, president and chief executive of Tamarac-based Arch Aluminum & Glass Co., a family-owned firm whose custom-designed windows and storefronts remain competitive despite the rising tide of Chinese glass and mirror imports.
Green Party Taiwan To Try To Halt Cracker, Steel Mill Plans
Yahoo Asia Pulse
In an attempt to halt construction of Taiwan's proposed eighth naphtha cracking plant and a large steel mill, which recently received government approval, environmental activists from Green Party Taiwan are planning to solicit support from their Asian-Pacific counterparts.
A delegation of Green Party Taiwan activists, to be led by Prof. Yenwen Peng from Tunghai University, is scheduled to take part in the Asia-Pacific Greens Kyoto Meeting set for Feb. 11-13 in Kyoto, Japan, marking the establishment of the Asia-Pacific Greens Network, according to Peng.
In an attempt to halt construction of Taiwan's proposed eighth naphtha cracking plant and a large steel mill, which recently received government approval, environmental activists from Green Party Taiwan are planning to solicit support from their Asian-Pacific counterparts.
A delegation of Green Party Taiwan activists, to be led by Prof. Yenwen Peng from Tunghai University, is scheduled to take part in the Asia-Pacific Greens Kyoto Meeting set for Feb. 11-13 in Kyoto, Japan, marking the establishment of the Asia-Pacific Greens Network, according to Peng.
Tower Joins Ranks of Struggling Suppliers
The Car Connection [ The Web's Automotive Authority ]
2005 shapes up to be another difficult year for the auto industry, and suppliers will be among the hardest hit.
Grim news continues to emerge for hard-pressed automotive suppliers. This past week, Tower Automotive became the latest automotive supplier to file for bankruptcy and Visteon Corp. reported a net loss of $1.2 billion for 2004. Even relatively healthy suppliers such as American Axle reported that its earnings had declined in the fourth quarter, and others such as ArvinMeritor had been putting bits and pieces of its operations up for sale.
2005 shapes up to be another difficult year for the auto industry, and suppliers will be among the hardest hit.
Grim news continues to emerge for hard-pressed automotive suppliers. This past week, Tower Automotive became the latest automotive supplier to file for bankruptcy and Visteon Corp. reported a net loss of $1.2 billion for 2004. Even relatively healthy suppliers such as American Axle reported that its earnings had declined in the fourth quarter, and others such as ArvinMeritor had been putting bits and pieces of its operations up for sale.
Sunday, February 06, 2005
Tower falls into bankruptcy
Detroit News
Tower Automotive Inc., the world's largest manufacturer of vehicle frames, filed for bankruptcy protection Wednesday, making it the latest auto parts supplier succumbing to the economic pressures plaguing the U.S. auto industry.
Novi-based Tower, with 1,100 Metro Detroit employees and 12,000 worldwide, said it has struggled to cope with vehicle production cuts, rising steel prices and a shift away from prepayment policies by some of its customers that left the company strapped for cash. The filing came after Tower missed a Feb. 1 deadline for an interest payment on some of its debt.
Tower will use the reorganization to reduce debt and improve cash flow. The company isn't planning to lay off workers or close facilities.
Tower's announcement follows bankruptcy filings last year by other local auto parts makers, including Oxford Automotive Inc. and Intermet Corp., both based in Troy.
"If you take a look at the pressure the supplier industry is under today, it's severe," said Steve D'Arcy, a partner with PricewaterhouseCoopers' automotive practice in Detroit.
Tower is one of the 20 largest auto suppliers in North America, with $3 billion in annual sales. Its bankruptcy filing signals just how difficult industry conditions have become.
Tower Automotive Inc., the world's largest manufacturer of vehicle frames, filed for bankruptcy protection Wednesday, making it the latest auto parts supplier succumbing to the economic pressures plaguing the U.S. auto industry.
Novi-based Tower, with 1,100 Metro Detroit employees and 12,000 worldwide, said it has struggled to cope with vehicle production cuts, rising steel prices and a shift away from prepayment policies by some of its customers that left the company strapped for cash. The filing came after Tower missed a Feb. 1 deadline for an interest payment on some of its debt.
Tower will use the reorganization to reduce debt and improve cash flow. The company isn't planning to lay off workers or close facilities.
Tower's announcement follows bankruptcy filings last year by other local auto parts makers, including Oxford Automotive Inc. and Intermet Corp., both based in Troy.
"If you take a look at the pressure the supplier industry is under today, it's severe," said Steve D'Arcy, a partner with PricewaterhouseCoopers' automotive practice in Detroit.
Tower is one of the 20 largest auto suppliers in North America, with $3 billion in annual sales. Its bankruptcy filing signals just how difficult industry conditions have become.
China: No timetable on yuan moves
Reuters via CNN.com
Chinese authorities have again declined to set out a timetable to make their currency more flexible on the world's money markets and said they had not come under international pressure to revalue the yuan.
Major nations and especially the United States have repeatedly urged China to allow its currency to rise and the Chinese foreign exchange regime was also in focus at the Group of Seven meeting.
'We are determined to move towards a flexible exchange rate, but no timetable,' Chinese central bank deputy governor Li Ruogu told reporters on Saturday.
When asked if China will widen the currency band or swap the peg for a currency basket, Li said : 'We will do whatever I think is possible.'
The yuan has been pegged at about 8.28 to the dollar since the mid 1990s and critics argue this is to low and gives Chinese exports an unfair competitive advantage.
China has countered that it will move to a more flexible currency regime at some stage but only when it has reformed its shaky financial system, a pledge repeated again at the G7 meeting of finance ministers in London.
China has already relaxed some curbs on foreign exchange transactions, including allowing some service firms to retain more foreign exchange earnings, and made it much easier for multinationals to deal in hard currency.
The central bank has pledged to push ahead with currency, interest rate and banking reform in 2005, but repeated its policy of keeping the yuan 'basically stable.'
The World Bank in its quarterly report on China released on Friday said China's economy is showing signs of cooling, but acceleration risks remain and Beijing should be ready to raise interest rates again if needed.
China's central bank governor said on Friday he expected the Chinese economy to grow by between eight and nine percent in 2005. Economic growth in 2004 was 9.5 percent.
Chinese authorities have again declined to set out a timetable to make their currency more flexible on the world's money markets and said they had not come under international pressure to revalue the yuan.
Major nations and especially the United States have repeatedly urged China to allow its currency to rise and the Chinese foreign exchange regime was also in focus at the Group of Seven meeting.
'We are determined to move towards a flexible exchange rate, but no timetable,' Chinese central bank deputy governor Li Ruogu told reporters on Saturday.
When asked if China will widen the currency band or swap the peg for a currency basket, Li said : 'We will do whatever I think is possible.'
The yuan has been pegged at about 8.28 to the dollar since the mid 1990s and critics argue this is to low and gives Chinese exports an unfair competitive advantage.
China has countered that it will move to a more flexible currency regime at some stage but only when it has reformed its shaky financial system, a pledge repeated again at the G7 meeting of finance ministers in London.
China has already relaxed some curbs on foreign exchange transactions, including allowing some service firms to retain more foreign exchange earnings, and made it much easier for multinationals to deal in hard currency.
The central bank has pledged to push ahead with currency, interest rate and banking reform in 2005, but repeated its policy of keeping the yuan 'basically stable.'
The World Bank in its quarterly report on China released on Friday said China's economy is showing signs of cooling, but acceleration risks remain and Beijing should be ready to raise interest rates again if needed.
China's central bank governor said on Friday he expected the Chinese economy to grow by between eight and nine percent in 2005. Economic growth in 2004 was 9.5 percent.
Saturday, February 05, 2005
Steel worker dies in Granite City accident
STLtoday
A 46-year-old worker at the U.S. Steel plant in Granite City was killed late Thursday when a cargo train crushed him against the wall of a loading dock.
David M. Prengel, a switchman who had worked at the plant for 26 years, was pronounced dead at 11 p.m. by a Madison County coroner's office investigator.
A 46-year-old worker at the U.S. Steel plant in Granite City was killed late Thursday when a cargo train crushed him against the wall of a loading dock.
David M. Prengel, a switchman who had worked at the plant for 26 years, was pronounced dead at 11 p.m. by a Madison County coroner's office investigator.
Daido Steel Asks Customers to Pay 20% More for Steel Products
Bloomberg.com: Japan
Daido Steel Corp., Japan's largest maker of specialty steel, asked automakers and other customers to pay 20 percent more for steel products because of soaring costs for raw materials such as nickel and molybdenum.
Nickel prices averaged 53 percent higher in 2004, while molybdenum rose fourfold last year, boosting costs at Nagoya- based Daido Steel, which gets about 70 percent of its revenue selling auto parts to companies including Nissan Motor Co. Daido Steel uses more of the metals than other steelmakers.
Daido Steel Corp., Japan's largest maker of specialty steel, asked automakers and other customers to pay 20 percent more for steel products because of soaring costs for raw materials such as nickel and molybdenum.
Nickel prices averaged 53 percent higher in 2004, while molybdenum rose fourfold last year, boosting costs at Nagoya- based Daido Steel, which gets about 70 percent of its revenue selling auto parts to companies including Nissan Motor Co. Daido Steel uses more of the metals than other steelmakers.
Labels: nickel
Specialty Steel Industry Group Releases YTD October 2004 Data
Specialty Steel Industry of North America
SSINA today released import, U.S. consumption, and import penetration data covering January through October 2004. Percentage comparisons refer to the YTD October 2003 ten-month period.
Imports of total stainless steel were 537,262 tons, a 30% increase; U.S. consumption was 1,996,913 tons, a 12% increase; import penetration was 27%, a four percentage point increase.
Alloy tool steel: Imports were 75,478 tons, a 5% increase; U.S. consumption and import penetration are not calculable.
SSINA today released import, U.S. consumption, and import penetration data covering January through October 2004. Percentage comparisons refer to the YTD October 2003 ten-month period.
Imports of total stainless steel were 537,262 tons, a 30% increase; U.S. consumption was 1,996,913 tons, a 12% increase; import penetration was 27%, a four percentage point increase.
Alloy tool steel: Imports were 75,478 tons, a 5% increase; U.S. consumption and import penetration are not calculable.
Equipment manufacturers steel themselves for future price hikes
High Plains Journal
Walk down the isle at any farm show and it does not take long to see that steel is the major component of nearly every piece of farm equipment on display. The agricultural equipment industry in this country is one of the biggest users of steel and for the past year they have struggled with historic high prices for their main ingredient.
The Association of Equipment Manufacturers (AEM), which includes construction and farm equipment manufacturers, conducted a survey of its members in October to determine the impact of high steel prices on their industry. Every member responding to the survey reported paying higher prices for steel in 2004. According to the AEM survey the median steel price increase was 60 percent and many reported paying 100 percent more for steel in 2004.
'It has affected not only Krause Corporation, but a lot of consumers of steel very dramatically,' says Richard Brown, CEO of Krause Corporation in Hutchinson, Kan. 'Our steel costs, using Dec. 2003 as a base, through Dec. 2004 went up approximately 115 percent. That is common in our industry. We felt the sharp edge first because our products are primarily steel. We don't have substitution capability like other industries."
Walk down the isle at any farm show and it does not take long to see that steel is the major component of nearly every piece of farm equipment on display. The agricultural equipment industry in this country is one of the biggest users of steel and for the past year they have struggled with historic high prices for their main ingredient.
The Association of Equipment Manufacturers (AEM), which includes construction and farm equipment manufacturers, conducted a survey of its members in October to determine the impact of high steel prices on their industry. Every member responding to the survey reported paying higher prices for steel in 2004. According to the AEM survey the median steel price increase was 60 percent and many reported paying 100 percent more for steel in 2004.
'It has affected not only Krause Corporation, but a lot of consumers of steel very dramatically,' says Richard Brown, CEO of Krause Corporation in Hutchinson, Kan. 'Our steel costs, using Dec. 2003 as a base, through Dec. 2004 went up approximately 115 percent. That is common in our industry. We felt the sharp edge first because our products are primarily steel. We don't have substitution capability like other industries."
Thursday, February 03, 2005
G-7 to Focus on Chinese Currency, African Debt
Associated Press
China will be under pressure to unhitch its currency from the ailing U.S. dollar when finance officials from the world's seven richest countries meet this weekend, though the Asia nation is unlikely to offer any promises.
China, expected to be the focus of much of the talks, is a guest at the summit of finance officials from the United States, Britain, Canada, France, Germany, Italy and Japan.
China's pegging of the yuan to the U.S. currency has supercharged its exports as the dollar has declined -- dealing a double blow to Japanese and European companies already facing competition in international markets from now-cheaper U.S. products. Critics contend the yuan is undervalued by as much as 40 percent.
Even U.S. manufacturers, whose overseas sales have risen as the dollar weakened, are complaining that China's dollar peg policy has contributed to the loss of factory jobs and the record trade deficits.
John Taylor, the U.S. Treasury Department's undersecretary for international affairs, expressed optimism this week that the United States is making progress in its campaign to get Beijing to stop linking the yuan to the dollar.
"We've seen steps that are being taken, which are consistent with a move toward a flexible exchange rate," said Taylor, who will attend in place of Treasury Secretary John Snow, who has a cold.
China will be under pressure to unhitch its currency from the ailing U.S. dollar when finance officials from the world's seven richest countries meet this weekend, though the Asia nation is unlikely to offer any promises.
China, expected to be the focus of much of the talks, is a guest at the summit of finance officials from the United States, Britain, Canada, France, Germany, Italy and Japan.
China's pegging of the yuan to the U.S. currency has supercharged its exports as the dollar has declined -- dealing a double blow to Japanese and European companies already facing competition in international markets from now-cheaper U.S. products. Critics contend the yuan is undervalued by as much as 40 percent.
Even U.S. manufacturers, whose overseas sales have risen as the dollar weakened, are complaining that China's dollar peg policy has contributed to the loss of factory jobs and the record trade deficits.
John Taylor, the U.S. Treasury Department's undersecretary for international affairs, expressed optimism this week that the United States is making progress in its campaign to get Beijing to stop linking the yuan to the dollar.
"We've seen steps that are being taken, which are consistent with a move toward a flexible exchange rate," said Taylor, who will attend in place of Treasury Secretary John Snow, who has a cold.
Wednesday, February 02, 2005
Scrap steel demand set to continue, but uncertainty lingers
letsrecycle.com
Global steel production passed the 1 billion tonne mark in 2004, the International Iron and Steel Institute has confirmed, while experts have said 2005 should witness continuing growth in global demand for scrap steel.
In an end-of-year report, the International Iron and Steel Institute said world crude steel production stood at 1.05 billion metric tonnes in 2004. This represented an 8.8% increase in production compared to 2003, largely driven by China. Excluding China, the growth on 2003 was 4.5%.
The Chinese were by far the largest steel producers in 2004, producing 272.5 million tonnes, with a 23.2% growth on 2003 production figure. China made a quarter of all the steel produced in the world last year.
Global steel production passed the 1 billion tonne mark in 2004, the International Iron and Steel Institute has confirmed, while experts have said 2005 should witness continuing growth in global demand for scrap steel.
In an end-of-year report, the International Iron and Steel Institute said world crude steel production stood at 1.05 billion metric tonnes in 2004. This represented an 8.8% increase in production compared to 2003, largely driven by China. Excluding China, the growth on 2003 was 4.5%.
The Chinese were by far the largest steel producers in 2004, producing 272.5 million tonnes, with a 23.2% growth on 2003 production figure. China made a quarter of all the steel produced in the world last year.
