Friday, July 29, 2005
Copper reaches all-time high
FT via Yahoo
Copper prices broke through the $3,500 a tonne level for the first time ever in nominal terms on Thursday as copper inventories hovered around long-term low levels. The price was also pushed higher on recent US data that suggests that demand for metals may be stronger than expected.
Copper prices broke through the $3,500 a tonne level for the first time ever in nominal terms on Thursday as copper inventories hovered around long-term low levels. The price was also pushed higher on recent US data that suggests that demand for metals may be stronger than expected.
Labels: Copper
GLOBAL STAINLESS STEEL PRICES SET TO FALL FURTHER
MEPS STEEL NEWS
Summer holidays in the northern hemisphere, high stocks and the weakening of raw material prices are combining to send stainless steel markets into the doldrums. Many producers have announced output cuts in an effort to bring the market back into balance. This has been made necessary by the excessive rate of production since mid 2004.
The resulting over-supply has caused falls in stainless prices. Mills have therefore been trying to steady the market by announcing cutbacks in production. In Europe, ThyssenKrupp Stainless, Ugine & ALZ and Outokumpu have each said they are reducing output – though in the case of the Finnish company it is not clear to what extent cuts at its Swedish works will be offset by the ramp-up of its new melting shop at Tornio in Finland.
But ... the article continues
So far these cuts have not had much effect on prices
That's been our experience to date. The delivery times are very good, they have everything we need, but the price hasn't dropped at all. Surcharges are supposed to drop in North America in August, but I haven't booked any stainless for delivery in August, so I don't know what's going to happen.
Summer holidays in the northern hemisphere, high stocks and the weakening of raw material prices are combining to send stainless steel markets into the doldrums. Many producers have announced output cuts in an effort to bring the market back into balance. This has been made necessary by the excessive rate of production since mid 2004.
The resulting over-supply has caused falls in stainless prices. Mills have therefore been trying to steady the market by announcing cutbacks in production. In Europe, ThyssenKrupp Stainless, Ugine & ALZ and Outokumpu have each said they are reducing output – though in the case of the Finnish company it is not clear to what extent cuts at its Swedish works will be offset by the ramp-up of its new melting shop at Tornio in Finland.
But ... the article continues
So far these cuts have not had much effect on prices
That's been our experience to date. The delivery times are very good, they have everything we need, but the price hasn't dropped at all. Surcharges are supposed to drop in North America in August, but I haven't booked any stainless for delivery in August, so I don't know what's going to happen.
Thursday, July 28, 2005
Stamping Out a Living chosen as site of the week by metals.about.com
In mid July 2005, this blog was chosen as site of the week by About Metals Guide:
Site Of The Week: Stampingoutaliving.com
BLOG for people who make a living in the metal stamping industries. Also of interest to designers, purchasers and consumers of stamped and/or formed metal parts.
We didn't even know we were being considered! Thanks, guys.
Site Of The Week: Stampingoutaliving.com
BLOG for people who make a living in the metal stamping industries. Also of interest to designers, purchasers and consumers of stamped and/or formed metal parts.
We didn't even know we were being considered! Thanks, guys.
U.S. House approves U.S.-Central America trade pact strongly backed by Bush
Gee, the house was up late ...
AP via moneysense.ca
The House narrowly approved the Central American Free Trade Agreement early Thursday, a personal triumph for U.S. President George W. Bush, who campaigned aggressively for the accord he said would foster prosperity and democracy in the hemisphere.
The 217-215 vote just after midnight adds six Latin American countries to the growing lists of nations with free trade agreements with the United States
Some days Bush is a free trader. Just not about steel ...
AP via moneysense.ca
The House narrowly approved the Central American Free Trade Agreement early Thursday, a personal triumph for U.S. President George W. Bush, who campaigned aggressively for the accord he said would foster prosperity and democracy in the hemisphere.
The 217-215 vote just after midnight adds six Latin American countries to the growing lists of nations with free trade agreements with the United States
Some days Bush is a free trader. Just not about steel ...
Wednesday, July 27, 2005
Level the Playing Field for U.S. Manufacturers Competing with China
Press Release
House Small Business Committee Chairman Don Manzullo will vote today for legislation to crack down on China and other countries that illegally subsidize their companies to give them an unfair competitive advantage over U.S. manufacturers.
The United States Trade Rights Enforcement Act (HR 3283), which the House will consider this afternoon, would provide various mechanisms to ensure China and other countries abide by their previous trade commitments.
The most significant provision would allow the United States to slap countervailing duties on non-market economies for illegally subsidizing their companies. China, a non-market economy, has evaded actions under the U.S. countervailing duty trade laws because current law only allows actions against market economies.
House Small Business Committee Chairman Don Manzullo will vote today for legislation to crack down on China and other countries that illegally subsidize their companies to give them an unfair competitive advantage over U.S. manufacturers.
The United States Trade Rights Enforcement Act (HR 3283), which the House will consider this afternoon, would provide various mechanisms to ensure China and other countries abide by their previous trade commitments.
The most significant provision would allow the United States to slap countervailing duties on non-market economies for illegally subsidizing their companies. China, a non-market economy, has evaded actions under the U.S. countervailing duty trade laws because current law only allows actions against market economies.
Tuesday, July 26, 2005
More Chinese Currency Nonsense
A few days ago I wrote that the recent currency move was smoke and mirrors. Many commentators wrote that it was just the first step of many, and I said that was rubbish.
Well, at least in the short term, I seem to have been right (sadly).
From the Washington Post China Downplays Further Currency Moves:
China's central bank on Tuesday declared that last week's slight increase in the value of the country's currency, the yuan, was a one-time event and not the beginning of a gradual climb, as officials sought to diminish speculative pressures for a substantial revaluation.
In a written statement, the People's Bank of China said the change to the country's currency regime was primarily aimed at altering how it sets the exchange rate for the yuan -- also known as the renminbi -- by severing its direct link to the U.S. dollar, and not a signal of any willingness to allow its value to float upward.
And then, with amazing cheek, the people's bank says:
"Certain foreign media has misled the public and even wrongly speculated that the revaluation of the renminbi by two percent was only the first step in a series of adjustments," the bank declared, adding that its action last week "does not in the least imply an initial move which warrants further actions in the future."
Well, thank heavens I wasn't part of the "misleading media"!
Later in the article, it says:
"Simply put, we don't see any effect whatsoever of a two percent revaluation on exports or imports," said Jonathan Anderson, chief economist at UBS Investment Research in Hong Kong in a recent note to investors. Anderson, who has been among the more accurate China-watchers in recent months, added that it was "hard to see any effect at all" on U.S. consumers and manufacturers, or on China's rate of economic growth.
Even a larger shift in the value of the yuan would likely have little impact on U.S. manufacturers, because most of China's export growth is in products that have not been made in the United States in large scale in many years. Chinese workers who once earned $1 an hour will now make $1.02 -- hardly an equation that will prompt American factories to dive back into the labor-intensive work of making toys, T-shirts and furniture.
Not to crow or anything, but it sure sounds like what I said at the time, doesn't it ...
Well, at least in the short term, I seem to have been right (sadly).
From the Washington Post China Downplays Further Currency Moves:
China's central bank on Tuesday declared that last week's slight increase in the value of the country's currency, the yuan, was a one-time event and not the beginning of a gradual climb, as officials sought to diminish speculative pressures for a substantial revaluation.
In a written statement, the People's Bank of China said the change to the country's currency regime was primarily aimed at altering how it sets the exchange rate for the yuan -- also known as the renminbi -- by severing its direct link to the U.S. dollar, and not a signal of any willingness to allow its value to float upward.
And then, with amazing cheek, the people's bank says:
"Certain foreign media has misled the public and even wrongly speculated that the revaluation of the renminbi by two percent was only the first step in a series of adjustments," the bank declared, adding that its action last week "does not in the least imply an initial move which warrants further actions in the future."
Well, thank heavens I wasn't part of the "misleading media"!
Later in the article, it says:
"Simply put, we don't see any effect whatsoever of a two percent revaluation on exports or imports," said Jonathan Anderson, chief economist at UBS Investment Research in Hong Kong in a recent note to investors. Anderson, who has been among the more accurate China-watchers in recent months, added that it was "hard to see any effect at all" on U.S. consumers and manufacturers, or on China's rate of economic growth.
Even a larger shift in the value of the yuan would likely have little impact on U.S. manufacturers, because most of China's export growth is in products that have not been made in the United States in large scale in many years. Chinese workers who once earned $1 an hour will now make $1.02 -- hardly an equation that will prompt American factories to dive back into the labor-intensive work of making toys, T-shirts and furniture.
Not to crow or anything, but it sure sounds like what I said at the time, doesn't it ...
Sunday, July 24, 2005
Bush Hails federal appellate judge John Roberts As Wise and Decent Court Pick
AP via Yahoo! News
From a distinguished legal pedigree to a belief in strict interpretation of the Constitution to summers working in a steel mill, President Bush on Saturday reviewed the reasons he chose federal appellate judge John Roberts for the Supreme Court.
His father, John G. Roberts, worked for Bethlehem Steel for 34 years, retiring in 1985.
However, don't read too much into that. What John Roberts Jr. knows and understands about steel and steel issues is still unclear ... his direct steel mill experience was oddjobs one summer ... from the New York Daily News
As Bush said, Roberts did work at a steel mill to help pay for college, although it was for just one summer assisting at the Bethlehem Steel mill where his father was a mid-level executive.
A spokesman for Mittal Steel, which now owns the plant, said during summertime, "children of employees would come and work here as laborers," which allowed them to earn some money for college tuition.
Langley, who also worked a summer at the plant, described the work as "mostly cleaning up big piles of industrial waste," and other tasks that full-time workers were loath to do. Yet the job was a good, he recalled, because "they paid so much."
From a distinguished legal pedigree to a belief in strict interpretation of the Constitution to summers working in a steel mill, President Bush on Saturday reviewed the reasons he chose federal appellate judge John Roberts for the Supreme Court.
His father, John G. Roberts, worked for Bethlehem Steel for 34 years, retiring in 1985.
However, don't read too much into that. What John Roberts Jr. knows and understands about steel and steel issues is still unclear ... his direct steel mill experience was oddjobs one summer ... from the New York Daily News
As Bush said, Roberts did work at a steel mill to help pay for college, although it was for just one summer assisting at the Bethlehem Steel mill where his father was a mid-level executive.
A spokesman for Mittal Steel, which now owns the plant, said during summertime, "children of employees would come and work here as laborers," which allowed them to earn some money for college tuition.
Langley, who also worked a summer at the plant, described the work as "mostly cleaning up big piles of industrial waste," and other tasks that full-time workers were loath to do. Yet the job was a good, he recalled, because "they paid so much."
Saturday, July 23, 2005
Environmentally Sensible Purchasing leads to Environmentally Sane Manufacturing
This week I went to a local meeting of the PMA (Precision Metalforming Association), a professional association of which we are members.
In the course of open discussion, we happened upon the issue of disposable manufacturing. This is (my name for) the practice of making manufacturing design decisions based on the assumption that flimsy goods are what the consumer wants. This in turn is based on the assumption, all too true in recent history, that when something breaks, no one will attempt to fix it but rather just throw it away and get another one (the so-called "disposable society").
While I believe there is a place for disposable goods (surgical needles that may have been contaminated by HIV, etc), I think in most cases, the move to disposable goods is made without consideration of the true cost.
When you go to Home Depot or Canadian Tire or wherever and buy a $3 no-name no warranty tape measure, the assumption is it will last a year or so and when it breaks you will throw it out and buy another. After all, you can buy 8 such tape measures for the cost of one good $25 Lufkin or Stanley model.
But ...
From an environmental point of view, the $25 Lufkin can be repaired. If the tape ever breaks, you can get another from the manufacturer (I assume Stanley has a similar program, although I've never actually checked). The $3 no name cannot. So you'll just throw it out. Remember the environmental "R"s? Reduce, Reuse, Recycle? (they should have added Repair in there somewhere). In any case, those 8 tape measures you'll buy and throw away will take up 8 times the space in the landfill. The plastic housings never break down and while you can crush the plastic housing, you can't with the tape inside. The tape inside will eventually rust and turn to powder, but it'll take a long time inside that weather-resistant plastic housing.
So, the environmental impact of buying the $3 last a year tape measure is far higher than the environmental impact of buying the $25 last a lifetime one.
Why is this a precision metal stamping issue? Because the $25 tape measure has enough money in it that precision parts are used in it. The tape itself is made out of high quality steel, the markings are screened on accurately, the end hook and the belt clip are good quality, as is the housing.
The $3 tape measure is made of lousy components. No one checks if it even measures accurately. And here's the environmental issue - the disposal costs are 8-10 times higher. But .... the disposal costs are hidden. The consumer doesn't see the disposal costs in the purchase price. The consumer doesn't see the disposal costs broken down at all, only knows that curbside garbage pickup and other municipal services are costing more every year, but doesn't understand that his/her own buying habits are contributing to that trend.
More importantly, the manufacturer doesn't pay any of the disposal costs, so for them, end of life disposal issues are a non-issue.
But that is changing.
In many parts of Canada and the US, drink bottles and cans are now recycled. In Europe they've gone a step further - the recycling facilities for cars at end of life are fully funded by the auto manufacturers, making disposal of harmful chemicals and difficult materials their responsibility, and ultimately, one hopes, giving automotive designers an incentive to design for the entire life-cycle of the product, including disposal.
Why don't manufacturers, and in particular manufacturing designers, design for end-of-life disposal issues? Because we, as a society, are in love with throw-away consumer goods. The designers make it someone elses problem, and you the consumer go along with it. By buying inferior products and buying into the idea that you'll just junk it when it stops working, you and I literally buy into this disposable culture.
By it's nature, disposable goods don't have to be well manufactured or manufactured so they can be repaired. So everything is made out of plastic, thin or poorly made metal where it has to be metal at all, and the average good lasts a year or two before contributing more to the landfills of the world than society.
How to stop or reverse this trend?
1. Your own buying habits.
2. Legislation in your jurisdiction that makes manufacturering designers and the executives above them responsible for end-of-life disposal problems.
Some interesting resources:
Environmentally Preferable Purchasing , an initiative of the American Environmental Protection Agency.
Wikipedia page on Ethical Consumerism - doesn't touch as much on environmental issues.
"Green" Purchasing Policy statement at Villanova University, PA
Green Purchasing search at Google
In the course of open discussion, we happened upon the issue of disposable manufacturing. This is (my name for) the practice of making manufacturing design decisions based on the assumption that flimsy goods are what the consumer wants. This in turn is based on the assumption, all too true in recent history, that when something breaks, no one will attempt to fix it but rather just throw it away and get another one (the so-called "disposable society").
While I believe there is a place for disposable goods (surgical needles that may have been contaminated by HIV, etc), I think in most cases, the move to disposable goods is made without consideration of the true cost.
When you go to Home Depot or Canadian Tire or wherever and buy a $3 no-name no warranty tape measure, the assumption is it will last a year or so and when it breaks you will throw it out and buy another. After all, you can buy 8 such tape measures for the cost of one good $25 Lufkin or Stanley model.
But ...
From an environmental point of view, the $25 Lufkin can be repaired. If the tape ever breaks, you can get another from the manufacturer (I assume Stanley has a similar program, although I've never actually checked). The $3 no name cannot. So you'll just throw it out. Remember the environmental "R"s? Reduce, Reuse, Recycle? (they should have added Repair in there somewhere). In any case, those 8 tape measures you'll buy and throw away will take up 8 times the space in the landfill. The plastic housings never break down and while you can crush the plastic housing, you can't with the tape inside. The tape inside will eventually rust and turn to powder, but it'll take a long time inside that weather-resistant plastic housing.
So, the environmental impact of buying the $3 last a year tape measure is far higher than the environmental impact of buying the $25 last a lifetime one.
Why is this a precision metal stamping issue? Because the $25 tape measure has enough money in it that precision parts are used in it. The tape itself is made out of high quality steel, the markings are screened on accurately, the end hook and the belt clip are good quality, as is the housing.
The $3 tape measure is made of lousy components. No one checks if it even measures accurately. And here's the environmental issue - the disposal costs are 8-10 times higher. But .... the disposal costs are hidden. The consumer doesn't see the disposal costs in the purchase price. The consumer doesn't see the disposal costs broken down at all, only knows that curbside garbage pickup and other municipal services are costing more every year, but doesn't understand that his/her own buying habits are contributing to that trend.
More importantly, the manufacturer doesn't pay any of the disposal costs, so for them, end of life disposal issues are a non-issue.
But that is changing.
In many parts of Canada and the US, drink bottles and cans are now recycled. In Europe they've gone a step further - the recycling facilities for cars at end of life are fully funded by the auto manufacturers, making disposal of harmful chemicals and difficult materials their responsibility, and ultimately, one hopes, giving automotive designers an incentive to design for the entire life-cycle of the product, including disposal.
Why don't manufacturers, and in particular manufacturing designers, design for end-of-life disposal issues? Because we, as a society, are in love with throw-away consumer goods. The designers make it someone elses problem, and you the consumer go along with it. By buying inferior products and buying into the idea that you'll just junk it when it stops working, you and I literally buy into this disposable culture.
By it's nature, disposable goods don't have to be well manufactured or manufactured so they can be repaired. So everything is made out of plastic, thin or poorly made metal where it has to be metal at all, and the average good lasts a year or two before contributing more to the landfills of the world than society.
How to stop or reverse this trend?
1. Your own buying habits.
2. Legislation in your jurisdiction that makes manufacturering designers and the executives above them responsible for end-of-life disposal problems.
Some interesting resources:
Environmentally Preferable Purchasing , an initiative of the American Environmental Protection Agency.
Wikipedia page on Ethical Consumerism - doesn't touch as much on environmental issues.
"Green" Purchasing Policy statement at Villanova University, PA
Green Purchasing search at Google
Thursday, July 21, 2005
China says it is no longer pegging its currency to the U.S. dollar
Well, this sounds great, until you dig a little further ...
In a move that could have dramatic consequences for global economies, China said Thursday it will no longer peg its currency to the U.S. dollar but instead let it float in a tight band against a basket of foreign currencies.
The yuan currency has been strengthened, effective immediately, to a rate of 8.11 to the U.S. dollar - compared with the 8.28 it has been set at for more than a decade - and the new trading regime will begin Friday, the government said in an announcement on state television.
OK, is this real reform or is this smoke and mirrors? After 10 years of price fixing, they've moved the currency to be 2% stronger. Is that going to change anything? All those fixed price contracts for cotton underwear, plastic flashlights and (the real reason we're interested) stamped metal parts are going to be 2% more expensive, starting tomorrow. Actually, since trade with China is often cash in advance, the actual effective price increase will be with the next shipment after Friday.
Bottom line: none of those contracts moved to China for a 2% price advantage, and likely none are moving back for 2%.
So what really happened here?
The 2% is a tiny fraction of even the most conservative estimates of where the currency would go if it were allowed to float. So it's extremely unlikely that this is the "right" number which would be determined by open trading. They've just substituted another political number for the original one.
The yuan will now be allowed to trade in a tight 0.3 per cent band against a basket of foreign currencies, the government said. It didn't say which currencies.
One fixed price was substituted for another, and then the currency will be allowed to trade according to some hidden formula. This is if anything even less transparent than the previous scheme, and no more defensible in a free market environment.
Was the currency problem a 2.3% problem? Not even close. Has this gone any significant distance towards fixing it? Again, not even close.
I think this is smoke and mirrors. This was a rear-guard action to allow the Chinese government to say it is doing something while in fact doing nothing of substance. This will stop the congressional move to sanction China in the WTO, or at least reset the clock on it while people evaluate exactly how much "nothing" this move is.
Stalling tactic. That's my summary.
Perhaps the most important thing here is that they blinked at all. It's hard to blink only once.
In a move that could have dramatic consequences for global economies, China said Thursday it will no longer peg its currency to the U.S. dollar but instead let it float in a tight band against a basket of foreign currencies.
The yuan currency has been strengthened, effective immediately, to a rate of 8.11 to the U.S. dollar - compared with the 8.28 it has been set at for more than a decade - and the new trading regime will begin Friday, the government said in an announcement on state television.
OK, is this real reform or is this smoke and mirrors? After 10 years of price fixing, they've moved the currency to be 2% stronger. Is that going to change anything? All those fixed price contracts for cotton underwear, plastic flashlights and (the real reason we're interested) stamped metal parts are going to be 2% more expensive, starting tomorrow. Actually, since trade with China is often cash in advance, the actual effective price increase will be with the next shipment after Friday.
Bottom line: none of those contracts moved to China for a 2% price advantage, and likely none are moving back for 2%.
So what really happened here?
The 2% is a tiny fraction of even the most conservative estimates of where the currency would go if it were allowed to float. So it's extremely unlikely that this is the "right" number which would be determined by open trading. They've just substituted another political number for the original one.
The yuan will now be allowed to trade in a tight 0.3 per cent band against a basket of foreign currencies, the government said. It didn't say which currencies.
One fixed price was substituted for another, and then the currency will be allowed to trade according to some hidden formula. This is if anything even less transparent than the previous scheme, and no more defensible in a free market environment.
Was the currency problem a 2.3% problem? Not even close. Has this gone any significant distance towards fixing it? Again, not even close.
I think this is smoke and mirrors. This was a rear-guard action to allow the Chinese government to say it is doing something while in fact doing nothing of substance. This will stop the congressional move to sanction China in the WTO, or at least reset the clock on it while people evaluate exactly how much "nothing" this move is.
Stalling tactic. That's my summary.
Perhaps the most important thing here is that they blinked at all. It's hard to blink only once.
Wednesday, July 20, 2005
GLOBAL STEEL OUTPUT IN 2005 COULD REACH 1122 MILLION TONNES
MEPS
We expect world crude steel production to expand by 6.8 percent this year - up by 76.5 million tonnes on the outturn in 2004. This figure represents a decline in the rate of growth in output during the second half as demand from customers in many parts of the globe continues to decrease.
The inventory building phase is complete. We are now in a stock drawdown situation. Prices for most steel products have collapsed due to over supply. Further reductions are inevitable until supply and demand move nearer into balance.
A number of mills have already announced action to curtail supply. Unfortunately, significant amounts of new capacity have come on stream recently. Steel producers are always reluctant to curb output just at the time they had planned to benefit from increased tonnage.
North American steel manufacturing is starting to slip. Customer demand is sluggish. The mini mills have short delivery lead times due to lack of orders, resulting from the excessive inventories built up by customers over the last nine months. The second half of this year will be a difficult time for the steel makers. We forecast total output for the year falling to around 130 million tonnes - down 3 million tonnes on the year earlier figure.
We expect world crude steel production to expand by 6.8 percent this year - up by 76.5 million tonnes on the outturn in 2004. This figure represents a decline in the rate of growth in output during the second half as demand from customers in many parts of the globe continues to decrease.
The inventory building phase is complete. We are now in a stock drawdown situation. Prices for most steel products have collapsed due to over supply. Further reductions are inevitable until supply and demand move nearer into balance.
A number of mills have already announced action to curtail supply. Unfortunately, significant amounts of new capacity have come on stream recently. Steel producers are always reluctant to curb output just at the time they had planned to benefit from increased tonnage.
North American steel manufacturing is starting to slip. Customer demand is sluggish. The mini mills have short delivery lead times due to lack of orders, resulting from the excessive inventories built up by customers over the last nine months. The second half of this year will be a difficult time for the steel makers. We forecast total output for the year falling to around 130 million tonnes - down 3 million tonnes on the year earlier figure.
Tuesday, July 19, 2005
Two companies fined $39,000
From time to time I make a big deal about the workplace safety record of the Chinese steel industry and supporting industries, like coal.
Well, fair is fair. You may remember the accident back in May where a person cleaning out a collection hopper died. There was a followup article a few days later.
Well, I like doing followup articles. I wish the media did more "what eventually happened to that case" reporting. So here's the followup in this case:
Two companies were fined a total of $39,000 in the death of William 'Bill' Maffitt who died while working as a contractor at Beta Steel on May 6.
The state also said that Beta Steel didn't give the Portage Fire Department access so that it could develop rescue plans before the accident.
Portage Fire Chief Tim Sosby said since the accident Beta has contacted his department to craft a new plan for when employees work in confined spaces. He said beforehand, the company had been required under law to notify the fire department when workers would be entering confined spaces, and the company had not done so.
Well, fair is fair. You may remember the accident back in May where a person cleaning out a collection hopper died. There was a followup article a few days later.
Well, I like doing followup articles. I wish the media did more "what eventually happened to that case" reporting. So here's the followup in this case:
Two companies were fined a total of $39,000 in the death of William 'Bill' Maffitt who died while working as a contractor at Beta Steel on May 6.
The state also said that Beta Steel didn't give the Portage Fire Department access so that it could develop rescue plans before the accident.
Portage Fire Chief Tim Sosby said since the accident Beta has contacted his department to craft a new plan for when employees work in confined spaces. He said beforehand, the company had been required under law to notify the fire department when workers would be entering confined spaces, and the company had not done so.
Monday, July 18, 2005
Potential Consolidation News - Whirlpool and Maytag and Xstrata and Inco
A few big consolidations may be shaping up. In the appliance industry, Whirlpool Offers to Buy Maytag for $1.37B: Whirlpool Corp. has offered to buy fellow appliance maker Maytag Corp. for $1.37 billion in cash and stock, topping an earlier offer that Maytag had accepted from an investment group.
Late breaking news ... Whirlpool will be holding a conference call at 11AM this morning.
[next morning] the Toronto Globe & Mail had this take on the issue:
Whirlpool offer for Maytag seen as bid to block Chinese
Whirlpool Corp. has proposed a $1.35-billion (U.S.) bid for Maytag Corp., a move that will help wring out costs by buying the iconic American brand known for washers -- and keep it out of the hands of a low-cost Chinese rival.
But some observers yesterday suggested Whirlpool's move, which would give it almost 50 per cent of the U.S. appliance market, is a defensive tactic.
Analysts see Whirlpool trying to keep Haier from increasing its share in North America by buying the strong Maytag name and combining it with low-wage manufacturing.
But the best comment is buried in here:
David Silver [an analyst] expects Haier to outbid Whirlpool. "I think it [the winning bid] is going to be upwards to $19 a share.," he said.
"Haier can definitely afford to do so," Mr. Silver said. "They are the largest producer of appliances in China, and the Chinese are not as demanding as American investors in that it doesn't have to be every quarter that they see a profit. They are willing to take a loss in one or two quarters to see a large gain in the future."
It's been said before but bears repeating: the (North) American expectation that a company show profit and issue dividents every quarter does not work well for certain types of very long investment ventures, especially heavy industries like steel (and maybe even some medium industries like big stampers). It makes for decisions which are too short term. Ultimately, investor climates where they think longer term (China, Japan) will have an advantage over North America unless we smarten up.
On the drive in to work today, I heard this on the radio ...
Switzerland-based Xstrata may bid for Toronto-based Inco after failing to buy WMC Resources Ltd., Australia's The Age newspaper said today, citing people it didn't name.
Inco spokesman Steve Mitchell said he wasn't aware of the story and declined to comment on the issue. Xstrata also declined to comment.
Nickel prices on the London Metal Exchange averaged $14,715 a metric ton in the past 12 months, compared with $9,578 a ton in the previous five years, on surging demand from China, the world's fastest growing major economy.
Inco, of course, is a major player in the nickel marketplace, and nickel is a major component (cost and otherwise) of stainless steel.
The Xstrata web site says, about themselves, Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver.
Late breaking news ... Whirlpool will be holding a conference call at 11AM this morning.
[next morning] the Toronto Globe & Mail had this take on the issue:
Whirlpool offer for Maytag seen as bid to block Chinese
Whirlpool Corp. has proposed a $1.35-billion (U.S.) bid for Maytag Corp., a move that will help wring out costs by buying the iconic American brand known for washers -- and keep it out of the hands of a low-cost Chinese rival.
But some observers yesterday suggested Whirlpool's move, which would give it almost 50 per cent of the U.S. appliance market, is a defensive tactic.
Analysts see Whirlpool trying to keep Haier from increasing its share in North America by buying the strong Maytag name and combining it with low-wage manufacturing.
But the best comment is buried in here:
David Silver [an analyst] expects Haier to outbid Whirlpool. "I think it [the winning bid] is going to be upwards to $19 a share.," he said.
"Haier can definitely afford to do so," Mr. Silver said. "They are the largest producer of appliances in China, and the Chinese are not as demanding as American investors in that it doesn't have to be every quarter that they see a profit. They are willing to take a loss in one or two quarters to see a large gain in the future."
It's been said before but bears repeating: the (North) American expectation that a company show profit and issue dividents every quarter does not work well for certain types of very long investment ventures, especially heavy industries like steel (and maybe even some medium industries like big stampers). It makes for decisions which are too short term. Ultimately, investor climates where they think longer term (China, Japan) will have an advantage over North America unless we smarten up.
On the drive in to work today, I heard this on the radio ...
Switzerland-based Xstrata may bid for Toronto-based Inco after failing to buy WMC Resources Ltd., Australia's The Age newspaper said today, citing people it didn't name.
Inco spokesman Steve Mitchell said he wasn't aware of the story and declined to comment on the issue. Xstrata also declined to comment.
Nickel prices on the London Metal Exchange averaged $14,715 a metric ton in the past 12 months, compared with $9,578 a ton in the previous five years, on surging demand from China, the world's fastest growing major economy.
Inco, of course, is a major player in the nickel marketplace, and nickel is a major component (cost and otherwise) of stainless steel.
The Xstrata web site says, about themselves, Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver.
Saturday, July 16, 2005
Copper May Fall 35% by 2007, Codelco's Villarzu Says
Who can figure out copper prices these days? Copper (and also copper alloys Brass and BeCu) prices, are all over the map, the highest they've been in years.
But who can sort out the conflicting claims about what's happening in that marketplace? Is it just demand? Is it sinister hording? If hoarding, the hoarders have to sell before supply catches up with demand, else why hoard? 300,000 tons estimated to be hoarded.
If my calculations are correct,
That would be 15,000 20 ton dump trucks. 5 loads a day hauling the stuff to a hoarding place. 3,000 driver days. Wouldn't one of those drivers talk?
1.12 million cubic feet. The capacity of standard container in a 20' is about 1,170 cu. ft. So that's 960 containers (assuming you could fill them all the way, which I suspect isn't true). Again, wouldn't someone know that there was a hoard of almost a thousand containers of copper?
Bloomberg
Copper prices will probably fall 35 percent to about $1 a pound in two years as miners produce more of the metal to meet Chinese demand, said Juan Villarzu, executive president of Codelco, the world's No. 1 copper miner.
"It took some time to realize that demand from China was sustainable, but supply is adjusting and there will be more production,'' Villarzu, 61, said in an interview today by telephone from Sydney. "All the data we have shows there is little stock. I don't think there are hidden stocks.''
Copper futures in New York have risen 21 percent to $1.548 a pound in the past year. They reached $1.6040 a pound, a 16-year high, in June.
On the other hand,
Copper inventories monitored by exchanges have fallen to their lowest in three decades.
Villarzu's comments contrast with those of [...] other traders, who said this year's surge in copper futures is due to ``speculative hoarding'' by hedge funds and other buyers.
Analysts such as Maqsood Ahmed and Nick Moore have pointed to the possibility that stockpiles are being kept off the market.
Prices remain near a record because ``the metal is being hoarded'' by speculative funds, said Ahmed, who has worked in the mining and metals industry since 1993. Holders will sell when prices are high enough. Some ``bigger merchants and macro-hedge funds'' may hold as much as 300,000 tons of copper worth about $1 billion that isn't in warehouses registered with futures exchanges.
But who can sort out the conflicting claims about what's happening in that marketplace? Is it just demand? Is it sinister hording? If hoarding, the hoarders have to sell before supply catches up with demand, else why hoard? 300,000 tons estimated to be hoarded.
If my calculations are correct,
That would be 15,000 20 ton dump trucks. 5 loads a day hauling the stuff to a hoarding place. 3,000 driver days. Wouldn't one of those drivers talk?
1.12 million cubic feet. The capacity of standard container in a 20' is about 1,170 cu. ft. So that's 960 containers (assuming you could fill them all the way, which I suspect isn't true). Again, wouldn't someone know that there was a hoard of almost a thousand containers of copper?
Bloomberg
Copper prices will probably fall 35 percent to about $1 a pound in two years as miners produce more of the metal to meet Chinese demand, said Juan Villarzu, executive president of Codelco, the world's No. 1 copper miner.
"It took some time to realize that demand from China was sustainable, but supply is adjusting and there will be more production,'' Villarzu, 61, said in an interview today by telephone from Sydney. "All the data we have shows there is little stock. I don't think there are hidden stocks.''
Copper futures in New York have risen 21 percent to $1.548 a pound in the past year. They reached $1.6040 a pound, a 16-year high, in June.
On the other hand,
Copper inventories monitored by exchanges have fallen to their lowest in three decades.
Villarzu's comments contrast with those of [...] other traders, who said this year's surge in copper futures is due to ``speculative hoarding'' by hedge funds and other buyers.
Analysts such as Maqsood Ahmed and Nick Moore have pointed to the possibility that stockpiles are being kept off the market.
Prices remain near a record because ``the metal is being hoarded'' by speculative funds, said Ahmed, who has worked in the mining and metals industry since 1993. Holders will sell when prices are high enough. Some ``bigger merchants and macro-hedge funds'' may hold as much as 300,000 tons of copper worth about $1 billion that isn't in warehouses registered with futures exchanges.
Labels: Copper
Friday, July 15, 2005
U.S. industrial output surges in June - Capacity utilization highest since Dec. 2000
Output at the nation's factories, mines and utilities surged in June, the Federal Reserve reported Friday.
This is good news for parts stampers, because increased output of finished goods will trickle down into lowered inventory levels and turn into re-orders for component parts.
Marketwatch.com
U.S. industrial production rose 0.9% in June. This is the strongest monthly increase since February 2004. Capacity utilization jumped to 80% in June from 79.4% in the previous month. This is the highest level of capacity utilization since December 2000.
The gains in production and capacity use were much larger than forecast. Economists were expecting production to rise 0.4% and capacity utilization to rise to 76.4%
[Ed note: I believe this figure is in error and should have been entered as 79.4 ... Michael]
A separate report by the New York Federal Reserve Bank indicated that factory activity may have continued to improve in July. See full story.
Read Fed release and Marketwatch's economic calendar.
This is good news for parts stampers, because increased output of finished goods will trickle down into lowered inventory levels and turn into re-orders for component parts.
Marketwatch.com
U.S. industrial production rose 0.9% in June. This is the strongest monthly increase since February 2004. Capacity utilization jumped to 80% in June from 79.4% in the previous month. This is the highest level of capacity utilization since December 2000.
The gains in production and capacity use were much larger than forecast. Economists were expecting production to rise 0.4% and capacity utilization to rise to 76.4%
[Ed note: I believe this figure is in error and should have been entered as 79.4 ... Michael]
A separate report by the New York Federal Reserve Bank indicated that factory activity may have continued to improve in July. See full story.
Read Fed release and Marketwatch's economic calendar.
Thursday, July 14, 2005
China to restrict foreign investment in steel sector
It's hard to know what announcements out of China really mean, and if they really mean them. Their workplace safety announcements haven't amounted to any significant improvement in that area over the last few years, so is this any different? Hard to tell.
AFP via Yahoo! News
SHANGHAI (AFP) - China plans to restrict investment in its steel industry by barring foreign companies from taking controlling stakes, a blow to those wanting to tap the fast growing market.
The restrictions are contained in a new national steel industry policy due to be published next week, the China Daily said.
[...]
As the world's largest producer of crude steel, the Chinese government has spent billions of dollars on upgrading its steel makers such as Baosteel, currently the world's sixth largest.
It is now keen to improve the quality of the steel it makes as it lacks the technology to produce value-added high-quality steel. In much the same way it has done in the car industry, it wants technological transfers, analysts said.
"The steel sector is one of the backbones of China's steadily-growing economy. Therefore, it should not be controlled by foreigners," Tian Shuhua, an analyst at China Galaxy Securities, said of the protectionist measures.
AFP via Yahoo! News
SHANGHAI (AFP) - China plans to restrict investment in its steel industry by barring foreign companies from taking controlling stakes, a blow to those wanting to tap the fast growing market.
The restrictions are contained in a new national steel industry policy due to be published next week, the China Daily said.
[...]
As the world's largest producer of crude steel, the Chinese government has spent billions of dollars on upgrading its steel makers such as Baosteel, currently the world's sixth largest.
It is now keen to improve the quality of the steel it makes as it lacks the technology to produce value-added high-quality steel. In much the same way it has done in the car industry, it wants technological transfers, analysts said.
"The steel sector is one of the backbones of China's steadily-growing economy. Therefore, it should not be controlled by foreigners," Tian Shuhua, an analyst at China Galaxy Securities, said of the protectionist measures.
Wednesday, July 13, 2005
Manzullo Challenges Greenspan's Belief that China Currency Revaluation Will Not Help U.S. Manufacturers
Press Release
House Small Business Committee Chairman Don Manzullo (R-IL) today challenged Federal Reserve Board Chairman Alan Greenspan’s recent statement that a revaluation of China’s currency – the yuan --would have little positive impact on the U.S. manufacturing sector.
Manzullo, a House leader on efforts to force China to stop manipulating its currency to the detriment of U.S. manufacturers, sent a letter to Chairman Greenspan today taking issue with Greenspan’s June 23 testimony in front of the Senate Finance Committee. During the testimony, Chairman Greenspan said, “Some observers mistakenly believe that a marked increase in the exchange value of (China’s currency) relative to the U.S. dollar would significantly increase manufacturing activity and jobs in the United States. I am aware of no credible evidence that supports such a conclusion.�
In1994, China devalued its currency by about 30 percent and now pegs its value to the U.S. dollar. Economists estimate the yuan is currently up to 40 percent under value. This currency manipulation gives Chinese companies an artificial price advantage when selling into the United States and it costs U.S. companies more to sell in China.
In his letter to Chairman Greenspan, Manzullo states there is a “host of credible evidence demonstrating that (increasing) the value of China’s currency would improve the state of manufacturing in the United States.� Manzullo pointed out that during the same hearing in which Chairman Greenspan testified, a manufacturer from Rhode Island representing the National Association of Manufacturers presented a comprehensive analysis of why a Chinese yuan revaluation upward would have a positive benefit on U.S. trade and our domestic manufacturing base.
Here is the Bloomberg story of the June 23 testimony:
Imposing trade sanctions on China would be misguided and put the future of the U.S. economy at risk, Federal Reserve Chairman Alan Greenspan told lawmakers who are considering such penalties.
Greenspan and Treasury Secretary John Snow, who testified to the Senate Finance Committee, faced persistent questioning from some legislators who said China's trade policies, especially its currency regime, are unfair and illegal. Greenspan also cast doubt that a revaluation of China's currency would be beneficial to U.S. companies and the economy.
[...]
``Any significant elevation of tariffs that substantially reduces our overall imports, by keeping out competitively priced goods, would materially lower our standard of living,'' Greenspan said.
The Fed chairman said ``few, if any'' American jobs would be protected by a tariff on Chinese goods. U.S. workers displaced by trade with China should be compensated through unemployment insurance programs and retraining, he said.
[...]
Senators Charles Schumer, a New York Democrat, and Lindsey Graham, a South Carolina Republican, introduced a bill earlier this year that would impose a 27.5 percent duty on all imports from China to compensate for what they say is the subsidy Chinese exporters receive because of an undervalued currency. Republican leaders promised to hold a vote on the bill this year.
``Getting China to play by the rules of the game is the free- trade position,'' Schumer said. ``If we don't, if we dither, the fragile support for the free trade system around the globe is going to wither away.''
Greenspan and Snow said the Chinese recognize a revaluation of their currency would be helpful, and suggested they expect China to move soon.
``The sooner the Chinese, in their own self-interest, move to a more flexible currency regime, perhaps leading other Asian currencies to become more flexible as well, the better for all participants in the global trading system,'' Greenspan said.
House Small Business Committee Chairman Don Manzullo (R-IL) today challenged Federal Reserve Board Chairman Alan Greenspan’s recent statement that a revaluation of China’s currency – the yuan --would have little positive impact on the U.S. manufacturing sector.
Manzullo, a House leader on efforts to force China to stop manipulating its currency to the detriment of U.S. manufacturers, sent a letter to Chairman Greenspan today taking issue with Greenspan’s June 23 testimony in front of the Senate Finance Committee. During the testimony, Chairman Greenspan said, “Some observers mistakenly believe that a marked increase in the exchange value of (China’s currency) relative to the U.S. dollar would significantly increase manufacturing activity and jobs in the United States. I am aware of no credible evidence that supports such a conclusion.�
In1994, China devalued its currency by about 30 percent and now pegs its value to the U.S. dollar. Economists estimate the yuan is currently up to 40 percent under value. This currency manipulation gives Chinese companies an artificial price advantage when selling into the United States and it costs U.S. companies more to sell in China.
In his letter to Chairman Greenspan, Manzullo states there is a “host of credible evidence demonstrating that (increasing) the value of China’s currency would improve the state of manufacturing in the United States.� Manzullo pointed out that during the same hearing in which Chairman Greenspan testified, a manufacturer from Rhode Island representing the National Association of Manufacturers presented a comprehensive analysis of why a Chinese yuan revaluation upward would have a positive benefit on U.S. trade and our domestic manufacturing base.
Here is the Bloomberg story of the June 23 testimony:
Imposing trade sanctions on China would be misguided and put the future of the U.S. economy at risk, Federal Reserve Chairman Alan Greenspan told lawmakers who are considering such penalties.
Greenspan and Treasury Secretary John Snow, who testified to the Senate Finance Committee, faced persistent questioning from some legislators who said China's trade policies, especially its currency regime, are unfair and illegal. Greenspan also cast doubt that a revaluation of China's currency would be beneficial to U.S. companies and the economy.
[...]
``Any significant elevation of tariffs that substantially reduces our overall imports, by keeping out competitively priced goods, would materially lower our standard of living,'' Greenspan said.
The Fed chairman said ``few, if any'' American jobs would be protected by a tariff on Chinese goods. U.S. workers displaced by trade with China should be compensated through unemployment insurance programs and retraining, he said.
[...]
Senators Charles Schumer, a New York Democrat, and Lindsey Graham, a South Carolina Republican, introduced a bill earlier this year that would impose a 27.5 percent duty on all imports from China to compensate for what they say is the subsidy Chinese exporters receive because of an undervalued currency. Republican leaders promised to hold a vote on the bill this year.
``Getting China to play by the rules of the game is the free- trade position,'' Schumer said. ``If we don't, if we dither, the fragile support for the free trade system around the globe is going to wither away.''
Greenspan and Snow said the Chinese recognize a revaluation of their currency would be helpful, and suggested they expect China to move soon.
``The sooner the Chinese, in their own self-interest, move to a more flexible currency regime, perhaps leading other Asian currencies to become more flexible as well, the better for all participants in the global trading system,'' Greenspan said.
Sunday, July 10, 2005
Canadian steel firm sees great benefits
This from the Chicago area
Daily Herald
Strange as it might seem, Canada's IPSCO Inc., one of the world's most profitable steel companies last year measured on an earnings per ton basis, has its operational headquarters in suburban Lisle.
But then IPSCO has had a history of doing the unusual since its creation in 1956 in Regina, the capital of the province of Saskatchewan, an area known for farming, not steel.
It?s been a long journey for the company and its CEO, David Sutherland, who decided to make the 1,145 mile move.
And an incredibly successful one: In an industry where 42 of the 70 companies in North America were in bankruptcy three years ago, IPSCO was perfectly positioned to capitalize on a market upturn, reporting a profit last year that increased 26 fold to $438 million.
Daily Herald
Strange as it might seem, Canada's IPSCO Inc., one of the world's most profitable steel companies last year measured on an earnings per ton basis, has its operational headquarters in suburban Lisle.
But then IPSCO has had a history of doing the unusual since its creation in 1956 in Regina, the capital of the province of Saskatchewan, an area known for farming, not steel.
It?s been a long journey for the company and its CEO, David Sutherland, who decided to make the 1,145 mile move.
And an incredibly successful one: In an industry where 42 of the 70 companies in North America were in bankruptcy three years ago, IPSCO was perfectly positioned to capitalize on a market upturn, reporting a profit last year that increased 26 fold to $438 million.
UC Merced will open unfinished
Rains, steel costs caused delays
L.A. Daily News
When the new University of California, Merced, campus opens this fall, it will kind of be like moving into a half-finished home.
[...]
University administrators are blaming the delays on this year's unusually long rainy season and the rising price of steel that required the university to renegotiate purchase contracts.
L.A. Daily News
When the new University of California, Merced, campus opens this fall, it will kind of be like moving into a half-finished home.
[...]
University administrators are blaming the delays on this year's unusually long rainy season and the rising price of steel that required the university to renegotiate purchase contracts.
Saturday, July 09, 2005
Statistics place Ohio as a steel leader
Lots of statistics. Ohio is the top state, Indiana second. It doesn't list the other states.
The Steubenville Herald-Star
STEUBENVILLE - Ohio remains a leader in steel production despite the current soft market and industry consolidation during the past three years.
OhioSteel, an industry trade group whose members include Wheeling-Pittsburgh Steel Corp. and Mittal Steel USA, touts statistics showing shipments for the industry in Ohio reached four- to five-year highs in 2004. The group says the statistics are indicative of a turnaround in the industry, not of continued decline.
The Steubenville Herald-Star
STEUBENVILLE - Ohio remains a leader in steel production despite the current soft market and industry consolidation during the past three years.
OhioSteel, an industry trade group whose members include Wheeling-Pittsburgh Steel Corp. and Mittal Steel USA, touts statistics showing shipments for the industry in Ohio reached four- to five-year highs in 2004. The group says the statistics are indicative of a turnaround in the industry, not of continued decline.
Weapons melted for steel
A new source of recycled steel ...
DailyBulletin.com
About 4,000 seized weapons were melted down at a Rancho Cucamonga steel mill Friday morning.
The weapons were collected from 20 police agencies including the Los Angeles County Sheriff's Department, according to a sheriff's press release.
The weapons included guns, knives and swords, all of which were melted down into steel reinforcement bars
DailyBulletin.com
About 4,000 seized weapons were melted down at a Rancho Cucamonga steel mill Friday morning.
The weapons were collected from 20 police agencies including the Los Angeles County Sheriff's Department, according to a sheriff's press release.
The weapons included guns, knives and swords, all of which were melted down into steel reinforcement bars
Thursday, July 07, 2005
Globalization of steel costly for consumers
www.mansfieldnewsjournal.com
For steelmakers, a new global market has meant steady and sometimes record profits in an industry many had written off. For companies that buy steel for everything from auto parts to appliances, it's meant pain.
Steel consumers, from the automakers of Detroit to the home builders of Honolulu, are finding themselves on the very expensive other side of global consolidation: There are fewer steelmakers at a time when China and other developing nations are snatching up both the steel and the raw materials needed to make it.
For steelmakers, a new global market has meant steady and sometimes record profits in an industry many had written off. For companies that buy steel for everything from auto parts to appliances, it's meant pain.
Steel consumers, from the automakers of Detroit to the home builders of Honolulu, are finding themselves on the very expensive other side of global consolidation: There are fewer steelmakers at a time when China and other developing nations are snatching up both the steel and the raw materials needed to make it.
Wednesday, July 06, 2005
China Advises Its Steel Foundries, Other Heavy Industries to Conserve Energy, Water
Yet another example of the resource limits that China is bumping up against in its too rapid expansion ...
Beware, however, of orders from the Chinese cabinet ... they don't seem to get implemented all that quickly. The sting is, as often, in the tail of the quoted section
China has advised its steel foundries and other heavy industries to conserve energy and water, an official news report said Wednesday amid soaring demands for fuel to drive the booming economy.
The Cabinet issued an order Tuesday calling for China to "build a resources-saving society," the official Xinhua News Agency said.
Economic growth that is expected to top 9 percent this year has strained supplies of oil, coal, water and other resources. An unusually hot summer has added to demand as millions of households and businesses crank up air-conditioning.
The government said last week that power use in Beijing, Shanghai and other major cities has set new records and warned that portions of the country could face blackouts.
Officials said earlier that power demand this summer could exceed China's generating capacity by up to 5 percent.
Beware, however, of orders from the Chinese cabinet ... they don't seem to get implemented all that quickly. The sting is, as often, in the tail of the quoted section
China has advised its steel foundries and other heavy industries to conserve energy and water, an official news report said Wednesday amid soaring demands for fuel to drive the booming economy.
The Cabinet issued an order Tuesday calling for China to "build a resources-saving society," the official Xinhua News Agency said.
Economic growth that is expected to top 9 percent this year has strained supplies of oil, coal, water and other resources. An unusually hot summer has added to demand as millions of households and businesses crank up air-conditioning.
The government said last week that power use in Beijing, Shanghai and other major cities has set new records and warned that portions of the country could face blackouts.
Officials said earlier that power demand this summer could exceed China's generating capacity by up to 5 percent.
5 S's spell efficiency
This article seemed noteworthy for, amongst other things, introducing a significant issue for metal stamping job shops in a community newspaper. It reads a bit like a press release for the registrar (and that may be how it originated), but it stood out in my mind none-the-less.
Cincinnati Enquirer
The Metalworking Group, a metal-stamping plant employing 100, produces about 800 different items regularly for dozens of different manufacturing customers.
Because the plant's work is so diverse, owner Mike Schmitt was skeptical that the so-called 'lean' manufacturing, a process of streamlining and standardizing work processes, would work in his job shop.
But after being introduced to the concepts popularized by Toyota through a customer, Schmitt has become a believer.
'The idea that lean manufacturing won't work in a job shop is just false,' said Schmitt. 'Seventy to eighty percent of our processes are repeatable.'
Cincinnati Enquirer
The Metalworking Group, a metal-stamping plant employing 100, produces about 800 different items regularly for dozens of different manufacturing customers.
Because the plant's work is so diverse, owner Mike Schmitt was skeptical that the so-called 'lean' manufacturing, a process of streamlining and standardizing work processes, would work in his job shop.
But after being introduced to the concepts popularized by Toyota through a customer, Schmitt has become a believer.
'The idea that lean manufacturing won't work in a job shop is just false,' said Schmitt. 'Seventy to eighty percent of our processes are repeatable.'
Tuesday, July 05, 2005
European steel makers cut output amid slowing demand from China
A good review of who cut how much recently and how much they are forecasting that they'll cut.
AFP via Yahoo
European steel manufacturers have reduced their production levels in 2005 in response to a global slowdown in demand and an increase of production capacity in China, the main export market during the record year of 2004.
One by one last week, Europe's largest manufacturers announced cuts in production for the third quarter of 2005, following on from reductions in the second quarter.
AFP via Yahoo
European steel manufacturers have reduced their production levels in 2005 in response to a global slowdown in demand and an increase of production capacity in China, the main export market during the record year of 2004.
One by one last week, Europe's largest manufacturers announced cuts in production for the third quarter of 2005, following on from reductions in the second quarter.
Steel users pinched
Northwest Indiana News: nwitimes.com
For steelmakers, a new global market has meant steady and sometimes record profits in an industry many had written off. For companies that buy steel for everything from auto parts to appliances, it's meant pain.
'It's been a nightmare over the last two years. Most Americans don't understand what an impact steel pricing is having on U.S. manufacturing,' said Bill McKibben
from later on in the article ...
Four auto suppliers with assets greater than $100 million filed for bankruptcy in 2004, according to the Original Equipment Suppliers Association. Four more have filed so far this year, and others say they're on the brink.
Steel consumers say the federal government is unfairly protecting the steel industry by keeping many tariffs in place. In April, the U.S. International Trade Commission voted to keep tariffs for another five years on certain imports from Russia, Japan and Brazil.
"The U.S. steel industry is protected from competition by the government and enjoying record profits while we're in an economic tailspin," said Nels Leutwiler, CEO of Chicago-based Parkview Metal Products, which makes stamped metal items.
For steelmakers, a new global market has meant steady and sometimes record profits in an industry many had written off. For companies that buy steel for everything from auto parts to appliances, it's meant pain.
'It's been a nightmare over the last two years. Most Americans don't understand what an impact steel pricing is having on U.S. manufacturing,' said Bill McKibben
from later on in the article ...
Four auto suppliers with assets greater than $100 million filed for bankruptcy in 2004, according to the Original Equipment Suppliers Association. Four more have filed so far this year, and others say they're on the brink.
Steel consumers say the federal government is unfairly protecting the steel industry by keeping many tariffs in place. In April, the U.S. International Trade Commission voted to keep tariffs for another five years on certain imports from Russia, Japan and Brazil.
"The U.S. steel industry is protected from competition by the government and enjoying record profits while we're in an economic tailspin," said Nels Leutwiler, CEO of Chicago-based Parkview Metal Products, which makes stamped metal items.
Sunday, July 03, 2005
Gas Explosion at illegal Chinese coal mine kills 19 workers
I've commented before on the worker safety conditions (or lack thereof) in China. So this relayed without further comment. The articles so far don't say whether this is metalurgical (coaking) coal or some other type.
Yahoo Asia
Thirty-four miners were underground when the accident occurred at the Jiajiapu Coal Mine in Shanxi province Saturday, the report said. Fifteen workers escaped unharmed.
The mine was operating without official permits, it said.
China's mines are the world's most dangerous with fires, floods and other mishaps killing workers almost every day. Lax safety rules and a lack of proper safety equipment are often to blame.
Yahoo Asia
Thirty-four miners were underground when the accident occurred at the Jiajiapu Coal Mine in Shanxi province Saturday, the report said. Fifteen workers escaped unharmed.
The mine was operating without official permits, it said.
China's mines are the world's most dangerous with fires, floods and other mishaps killing workers almost every day. Lax safety rules and a lack of proper safety equipment are often to blame.
Friday, July 01, 2005
Global Stainless Steel Output Growth Forecast to Continue at 3.7 Percent
MEPS STEEL NEWS
Our forecast for global stainless steel production in 2005 is 25.3 million tonnes. This represents an increase of 3.7 percent, year on year, and is below the long term average for the industry. It still remains very clear that most of the growth will occur in the developing nations of the world. Production in the industrialised countries is stagnating.
China remains the power house for stainless demand. New capacity is being installed at a rapid pace to meet expanding requirements. However, the government has recognised that current output increases are not sustainable. Stainless steel has been included in a list of energy and resource investment industries which will be given less support from the government in future.
Read the whole article here.
Our forecast for global stainless steel production in 2005 is 25.3 million tonnes. This represents an increase of 3.7 percent, year on year, and is below the long term average for the industry. It still remains very clear that most of the growth will occur in the developing nations of the world. Production in the industrialised countries is stagnating.
China remains the power house for stainless demand. New capacity is being installed at a rapid pace to meet expanding requirements. However, the government has recognised that current output increases are not sustainable. Stainless steel has been included in a list of energy and resource investment industries which will be given less support from the government in future.
Read the whole article here.
