Friday, March 31, 2006
Delphi Corp. wants labour contracts scrapped
This is so big for metal stampers who do any automotive work. If Delphi strikes and stops GM production, it's going to have a ripple effect all through metal stamping.
CBC News
Auto parts company Delphi Corp. asked a U.S. court to void its collective agreements, a move that could lead to strikes at the company.
Delphi, which is the largest parts maker in the U.S., said it needs to void its labour deals with the The International Union of Electronics Workers-Communications Workers of America and the United Auto Workers union in order to get its costs down. Delphi has been in bankruptcy protection since last October.
As part of a strategy unveiled Friday, Delphi said it expects to cut its global salaried workforce by as many as 8,500 employees, or 25 per cent, as a result of product reductions and cost cutting.
'We are clearly focused on Delphi's future,' said Delphi chairman and CEO Robert S. 'Steve' Miller in a statement. 'Emergence from the Chapter 11 process in the U.S. requires that we make difficult, yet necessary, decisions.
The unions have threatened to go on strike if the company tears up the contracts. A strike could cripple the auto sector, especially General Motors. GM, the former parent company of Delphi, and its major customer, is also in a financially precarious position and is rumoured to be headed for Chapter 11 bankruptcy protection filing.
CBC News
Auto parts company Delphi Corp. asked a U.S. court to void its collective agreements, a move that could lead to strikes at the company.
Delphi, which is the largest parts maker in the U.S., said it needs to void its labour deals with the The International Union of Electronics Workers-Communications Workers of America and the United Auto Workers union in order to get its costs down. Delphi has been in bankruptcy protection since last October.
As part of a strategy unveiled Friday, Delphi said it expects to cut its global salaried workforce by as many as 8,500 employees, or 25 per cent, as a result of product reductions and cost cutting.
'We are clearly focused on Delphi's future,' said Delphi chairman and CEO Robert S. 'Steve' Miller in a statement. 'Emergence from the Chapter 11 process in the U.S. requires that we make difficult, yet necessary, decisions.
The unions have threatened to go on strike if the company tears up the contracts. A strike could cripple the auto sector, especially General Motors. GM, the former parent company of Delphi, and its major customer, is also in a financially precarious position and is rumoured to be headed for Chapter 11 bankruptcy protection filing.
United States Cites 62 Trading Partners
AP via Yahoo! News
The Bush administration on Friday cited 62 trading partners for erecting unfair barriers to American exports, with China coming in for criticism in such areas as failure to crack down on copyright piracy.
[...]
"We have an aggressive and proactive agenda to open markets and reduce trade barriers," said Jim Mendenhall, the general counsel for the Office of the U.S. Trade Representative. "Our job is to break down these barriers."
One of the country's receiving a large amount of attention in the new report was China, criticism that was seen as part of an ongoing effort by the administration to demonstrate it is taking a harder line with China in an effort to reduce a trade deficit with that country which hit an all-time high of $202 billion last year.
The San Francisco Chronicle had additional information:
In the new report, China was cited for inadquate enforcement of laws aimed at protecting U.S. copyrights of music, movies and computer programs.
The United States joined with the European Union on Thursday to file a case before the World Trade Organization accusing China of levying unfair taxes on auto parts made in the United States and other foreign countries. The administration is seeking to force China to make a number of trade concessions in coming weeks to address the huge trade gap with the United States in advance of the visit in mid-April of Chinese President Hu Jintao to Washington.
"China remains a serious and growing concern" because of its failure to crack down on rampant piracy of American copyrighted products, Medenhall said. He said that Russia was also presented significant problems in protecting American copyrights.
The Bush administration on Friday cited 62 trading partners for erecting unfair barriers to American exports, with China coming in for criticism in such areas as failure to crack down on copyright piracy.
[...]
"We have an aggressive and proactive agenda to open markets and reduce trade barriers," said Jim Mendenhall, the general counsel for the Office of the U.S. Trade Representative. "Our job is to break down these barriers."
One of the country's receiving a large amount of attention in the new report was China, criticism that was seen as part of an ongoing effort by the administration to demonstrate it is taking a harder line with China in an effort to reduce a trade deficit with that country which hit an all-time high of $202 billion last year.
The San Francisco Chronicle had additional information:
In the new report, China was cited for inadquate enforcement of laws aimed at protecting U.S. copyrights of music, movies and computer programs.
The United States joined with the European Union on Thursday to file a case before the World Trade Organization accusing China of levying unfair taxes on auto parts made in the United States and other foreign countries. The administration is seeking to force China to make a number of trade concessions in coming weeks to address the huge trade gap with the United States in advance of the visit in mid-April of Chinese President Hu Jintao to Washington.
"China remains a serious and growing concern" because of its failure to crack down on rampant piracy of American copyrighted products, Medenhall said. He said that Russia was also presented significant problems in protecting American copyrights.
New US currency bill seen as middle ground
Reuters
Newly proposed U.S. legislation to push China to let its currency rise is seen as a middle ground between broad trade sanctions and the current policy of dialogue and coaxing, which have left many lawmakers frustrated and impatient.
Newly proposed U.S. legislation to push China to let its currency rise is seen as a middle ground between broad trade sanctions and the current policy of dialogue and coaxing, which have left many lawmakers frustrated and impatient.
NAM - Remarks of John Engler at the Economic Club of Pittsburgh
NAM
Channellock is by no means alone in being hurt by Chinese competitors and policies that unlawfully undermine our manufacturing sector. Counterfeiting, hidden government subsidies, theft of intellectual property and currency manipulation – these are all simply unacceptable practices.
NAM is applying continuous pressure on Congress and the Administration, including our trade negotiators, to address these violations in a serious fashion. You will hear a lot from us on these topics again in April, when China’s President Hu visits Washington, D.C.
However, as much as we debate China policy, China isn’t responsible for our lack of a comprehensive energy policy. China can’t be blamed for our out-of-control legal system that forces the U.S. today spend more on litigation than innovation. The Chinese do not run our health-care system. It’s Congress who can address these issues, the issues I’ve talked about today.
Channellock is by no means alone in being hurt by Chinese competitors and policies that unlawfully undermine our manufacturing sector. Counterfeiting, hidden government subsidies, theft of intellectual property and currency manipulation – these are all simply unacceptable practices.
NAM is applying continuous pressure on Congress and the Administration, including our trade negotiators, to address these violations in a serious fashion. You will hear a lot from us on these topics again in April, when China’s President Hu visits Washington, D.C.
However, as much as we debate China policy, China isn’t responsible for our lack of a comprehensive energy policy. China can’t be blamed for our out-of-control legal system that forces the U.S. today spend more on litigation than innovation. The Chinese do not run our health-care system. It’s Congress who can address these issues, the issues I’ve talked about today.
Thursday, March 30, 2006
U.S. Files Trade Case Against China
AP via Yahoo! News
The Bush administration said Thursday that it is filing a trade case against China before the World Trade Organization in a dispute involving American auto parts.
The Bush administration said Thursday that it is filing a trade case against China before the World Trade Organization in a dispute involving American auto parts.
Tuesday, March 28, 2006
bipartisan delegation to meet with members of China’s National People’s Congress
Don Manzullo and Adam Schiff will lead a bipartisan House delegation in meetings with members of China's National People's Congress in Washington, D.C. this week. Officials will discuss issues ranging from currency manipulation and China's trade commitments to North Korea and Taiwan
I suppose this is worth watching, but I don't know if it will accomplish much. At much higher levels, everyone's saying "we aren't going to do anything" ...
By the way, and somewhat off topic, but isn't Adam Schiff the name of the District Attorney in the early episodes of the original Law & Order? The congressman is here. He doesn't look anything like Stephen Hill.
The Fed is going to make an announcement today ... everyone is betting on interest rate hikes ... that's probably more relevant to metal stampers than yet another meeting where the chinese deny they're manipulating ...
I suppose this is worth watching, but I don't know if it will accomplish much. At much higher levels, everyone's saying "we aren't going to do anything" ...
By the way, and somewhat off topic, but isn't Adam Schiff the name of the District Attorney in the early episodes of the original Law & Order? The congressman is here. He doesn't look anything like Stephen Hill.
The Fed is going to make an announcement today ... everyone is betting on interest rate hikes ... that's probably more relevant to metal stampers than yet another meeting where the chinese deny they're manipulating ...
Thursday, March 23, 2006
US, Canada NAFTA meet could yield softwood talks
I know it's not about stamping, but as trade disputes go, this is one of the most disputatious ones, so it's resolution may offer keys to other trade disputes, including ones including steel.
I'm not sure why Mexico is involved here ... the Mexican-US dispute is over cement, which isn't on the agenda tomorrow. But maybe there will be talks on both topics ....
Yahoo! News
A meeting on Friday between the United States, Canada and Mexico to discuss the North American Free Trade Agreement may yield a plan to restart talks on resolving a lumber row between the United States and Canada, industry sources said.
Talks about the long-running dispute broke down last summer and were left on hold while Canada held elections.
Canada ships $6 billion in softwood lumber such as spruce, fir and pine to the United States each year. Washington has slapped duties on the imports, saying Ottawa's below-market logging rates represent an unfair subsidy. Canada denies the claims and accuses the United States of being protectionist.
I'm not sure why Mexico is involved here ... the Mexican-US dispute is over cement, which isn't on the agenda tomorrow. But maybe there will be talks on both topics ....
Yahoo! News
A meeting on Friday between the United States, Canada and Mexico to discuss the North American Free Trade Agreement may yield a plan to restart talks on resolving a lumber row between the United States and Canada, industry sources said.
Talks about the long-running dispute broke down last summer and were left on hold while Canada held elections.
Canada ships $6 billion in softwood lumber such as spruce, fir and pine to the United States each year. Washington has slapped duties on the imports, saying Ottawa's below-market logging rates represent an unfair subsidy. Canada denies the claims and accuses the United States of being protectionist.
Wednesday, March 22, 2006
Delphi, GM, UAW Reach Agreement on Buyout
Yahoo News
General Motors Corp. and the auto parts supplier it once owned, Delphi Corp., announced deals Wednesday with the United Auto Workers that would offer buyouts to 13,000 hourly Delphi employees and up to 100,000 hourly GM workers represented by the United Auto Workers.
GM workers will be eligible for payouts of between $35,000 and $140,000 depending on their years of service. At Delphi, up to 5,000 workers will be eligible to return to GM, Delphi's former parent, while 13,000 U.S. hourly workers will be eligible for a lump sum payment of up to $35,000 to retire.
General Motors Corp. and the auto parts supplier it once owned, Delphi Corp., announced deals Wednesday with the United Auto Workers that would offer buyouts to 13,000 hourly Delphi employees and up to 100,000 hourly GM workers represented by the United Auto Workers.
GM workers will be eligible for payouts of between $35,000 and $140,000 depending on their years of service. At Delphi, up to 5,000 workers will be eligible to return to GM, Delphi's former parent, while 13,000 U.S. hourly workers will be eligible for a lump sum payment of up to $35,000 to retire.
Tuesday, March 21, 2006
China says no new steel mills, to close small ones
This might, indirectly and some time down the road, be good news to small metal stampers.
The current situation is that, in many cases, our ultimate customers can buy a finished product from China cheaper than we can buy the raw steel, never mind stamp it out. This is because, in China, steel is so cheap. And that, in turn, is because of the overcapacity in that marketplace.
A second factor is the currency manipulation currently going on in China. Of course, this won't solve that second problem.
Reuters via Yahoo! Asia
China's cabinet said it would not approve construction of any new steel mills and reiterated it would shut down small, outdated plants in an industry plagued with too much capacity and a raw material shortage.
The State Council also urged tighter controls on lending to and land use by industries plagued with overcapacity, including the aluminium, coke and automobile sectors.
'In general, the problem of over-investment leading to a capacity surplus in some industries has not been solved completely,' the State Council said in a document posted on the central government Web site (www.gov.cn) on Monday.
The State Council said it would speed up mergers and closures of small plants in those industries this year.
The current situation is that, in many cases, our ultimate customers can buy a finished product from China cheaper than we can buy the raw steel, never mind stamp it out. This is because, in China, steel is so cheap. And that, in turn, is because of the overcapacity in that marketplace.
A second factor is the currency manipulation currently going on in China. Of course, this won't solve that second problem.
Reuters via Yahoo! Asia
China's cabinet said it would not approve construction of any new steel mills and reiterated it would shut down small, outdated plants in an industry plagued with too much capacity and a raw material shortage.
The State Council also urged tighter controls on lending to and land use by industries plagued with overcapacity, including the aluminium, coke and automobile sectors.
'In general, the problem of over-investment leading to a capacity surplus in some industries has not been solved completely,' the State Council said in a document posted on the central government Web site (www.gov.cn) on Monday.
The State Council said it would speed up mergers and closures of small plants in those industries this year.
EU STEEL PRICE RECOVERY NOW IN PLACE
This report is for the EU. Usually MEPS follows in a few days with a report for North America. I don't know if the same factors apply here, but the markets are linked.
Remember, as always, that MEPS is a steel-producing-side publication, so a recovery in prices means an increase, and is seen as a good thing by them.
Stampers, of course, see it otherwise ....
A recovery in prices has now definitely commenced in the European steel market. In the first two months of this year, despite much talk by the mills, the market saw little actual upward movement. But now the advance is underway.
Mills� order books are swelling with new business, as buyers return to the market to replenish their inventories. Price increases of about 7 percent are being obtained for strip products from negotiations this month - the first upward move in prices in more than a year. Producers are intending to follow this up with further increases.
Remember, as always, that MEPS is a steel-producing-side publication, so a recovery in prices means an increase, and is seen as a good thing by them.
Stampers, of course, see it otherwise ....
A recovery in prices has now definitely commenced in the European steel market. In the first two months of this year, despite much talk by the mills, the market saw little actual upward movement. But now the advance is underway.
Mills� order books are swelling with new business, as buyers return to the market to replenish their inventories. Price increases of about 7 percent are being obtained for strip products from negotiations this month - the first upward move in prices in more than a year. Producers are intending to follow this up with further increases.
Friday, March 17, 2006
Copper Prices continue to hang out in the high rent district
AK Steel to increase spot market prices for carbon steel products
Manufacturing Center
AK Steel announced yesterday that it would increase spot market prices for its carbon steel products by $30 per ton for all new orders accepted for shipment May 1 and later.
AK Steel also advised its flat-rolled carbon steel customers that a $189 per ton surcharge would be added to invoices for products shipped in April 2006. Additionally, AK Steel advised its electrical steel customers that a $200 per ton surcharge would be added to invoices for electrical steel products shipped in April.
AK Steel’s surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the February 2006 purchase cost used to determine the April 2006 surcharges.
And while we're on the subject of AK, they're still having labour problems.
Steelworkers Watch As AK Steel Lockout Continues
As AK Steel Corp.'s lockout of Armco Employees Independent Federation enters its third week, leaders of United Steelworkers of America are watching.
The Steelworkers, a union with 1.2 million working and retired members in the United States and Canada, have courted AEIF members in the past decade, but to no avail.
AK Steel announced yesterday that it would increase spot market prices for its carbon steel products by $30 per ton for all new orders accepted for shipment May 1 and later.
AK Steel also advised its flat-rolled carbon steel customers that a $189 per ton surcharge would be added to invoices for products shipped in April 2006. Additionally, AK Steel advised its electrical steel customers that a $200 per ton surcharge would be added to invoices for electrical steel products shipped in April.
AK Steel’s surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the February 2006 purchase cost used to determine the April 2006 surcharges.
And while we're on the subject of AK, they're still having labour problems.
Steelworkers Watch As AK Steel Lockout Continues
As AK Steel Corp.'s lockout of Armco Employees Independent Federation enters its third week, leaders of United Steelworkers of America are watching.
The Steelworkers, a union with 1.2 million working and retired members in the United States and Canada, have courted AEIF members in the past decade, but to no avail.
Thursday, March 16, 2006
Steel Dynamics favorable ruling
I'd be lying if I told you I understood all the implications of this ruling. At heart was GMs attempt to get suppliers to assume all the input cost variations in multi-year deals. Although, if I read this correctly, it fell through not on the underlying issues but on the fact that the letter awarding the work was not a proper contract, implying that had the contract been properly formulated, it might have been possible for GM to force Steel Dynamics to honour it despite the fact that it was no longer a viable proposition.
TradingMarkets.com
Steel Dynamics received a favorable ruling that a certain January 2003 GM multi-year 'award letter' issued to Steel Dynamics was not in fact an enforceable contract and that GM could not compel Steel Dynamics to sell GM steel throughout 2004 at January 2003 prices.
TradingMarkets.com
Steel Dynamics received a favorable ruling that a certain January 2003 GM multi-year 'award letter' issued to Steel Dynamics was not in fact an enforceable contract and that GM could not compel Steel Dynamics to sell GM steel throughout 2004 at January 2003 prices.
Tuesday, March 14, 2006
CEO: Lightning caused Sago Mine blast
Two news stories today about the Sago mine explosion Jan 2nd.
www.dailypress.com
A massive lightning strike apparently sparked the Jan. 2 explosion that killed 12 workers at the Sago Mine, igniting methane gas that had accumulated in an abandoned and sealed-off area, the mine's owner said Tuesday.
Ben Hatfield, chief executive officer of International Coal Group Inc., said the company's own investigation has turned up three compelling pieces of evidence, all from 6:26 a.m. that day: Weather monitors confirmed an unusually large and powerful lightning strike near the mine, a U.S. Geologic Survey confirmed a seismic event at Sago, and the mine's own atmospheric monitoring system signaled a combustion alarm.
And the sole survivor went home today for a few hours.
USA Today
The sole survivor of the Sago Mine disaster visited his home for the first time since the Jan. 2 explosion Tuesday, eating a home-cooked lunch and visiting with his family during a three-hour stay.
The coal miner's wife, Anna, had refused to return to the family home in Simpson, staying at the hospital or a nearby hotel, until her husband could go with her.
On Tuesday, he made the 45-minute drive with Anna, their two children and brother-in-law Rick McGee
www.dailypress.com
A massive lightning strike apparently sparked the Jan. 2 explosion that killed 12 workers at the Sago Mine, igniting methane gas that had accumulated in an abandoned and sealed-off area, the mine's owner said Tuesday.
Ben Hatfield, chief executive officer of International Coal Group Inc., said the company's own investigation has turned up three compelling pieces of evidence, all from 6:26 a.m. that day: Weather monitors confirmed an unusually large and powerful lightning strike near the mine, a U.S. Geologic Survey confirmed a seismic event at Sago, and the mine's own atmospheric monitoring system signaled a combustion alarm.
And the sole survivor went home today for a few hours.
USA Today
The sole survivor of the Sago Mine disaster visited his home for the first time since the Jan. 2 explosion Tuesday, eating a home-cooked lunch and visiting with his family during a three-hour stay.
The coal miner's wife, Anna, had refused to return to the family home in Simpson, staying at the hospital or a nearby hotel, until her husband could go with her.
On Tuesday, he made the 45-minute drive with Anna, their two children and brother-in-law Rick McGee
Stelco confirms delisting of common shares
Stelco Inc.
The Company had announced on March 3, 2006 that its board of directors had authorized the filing of a delisting application. As disclosed on previous occasions, there is insufficient value in the Company under the approved restructuring plan to provide recovery for the current common shareholders. As a result, the existing common shares will be eliminated on plan implementation with no value being attributed to them.
The Company had announced on March 3, 2006 that its board of directors had authorized the filing of a delisting application. As disclosed on previous occasions, there is insufficient value in the Company under the approved restructuring plan to provide recovery for the current common shareholders. As a result, the existing common shares will be eliminated on plan implementation with no value being attributed to them.
Labels: stelco
Monday, March 13, 2006
Republican candidate makes campaign swing
This is interesting both because it's an attempt to unseat Sen. Robert C. Byrd and because the man comes from a steel background.
East Liverpool Review Online
A self-described 'Reagan Republican' made his way to northern Hancock County in a bid to unseat the long-term U.S. senator from West Virginia.
John Raese, a resident of Morgantown, has thrown his hat into the Republican ring for a chance to defeat Senator Robert C. Byrd. But first, Raese must win his party's primary in May.
To that end, Raese has been traveling much of the state talking about the issues that set him apart from his competition in the primary and, what he hopes will be, in the general election in November.
Raese, through his businesses, has had a long standing relationship with the county's steel mill and is concerned over the job loss.
'We are seeing most of our market eaten alive by steel from Communist China,' Raese said. 'We are creating a lot of problems in Washington - it's my biggest issue right now.'
Since he has business interests with steel and limestone, Raese said he is keenly aware of some of the problems facing large and small business owners.
'Regulations in our country cost $98 billion a year to small business owners. That's about $2,800 per employee,' Raese said. Deregulation is the key, the candidate suggests, to help unlock the potential for small business growth.
East Liverpool Review Online
A self-described 'Reagan Republican' made his way to northern Hancock County in a bid to unseat the long-term U.S. senator from West Virginia.
John Raese, a resident of Morgantown, has thrown his hat into the Republican ring for a chance to defeat Senator Robert C. Byrd. But first, Raese must win his party's primary in May.
To that end, Raese has been traveling much of the state talking about the issues that set him apart from his competition in the primary and, what he hopes will be, in the general election in November.
Raese, through his businesses, has had a long standing relationship with the county's steel mill and is concerned over the job loss.
'We are seeing most of our market eaten alive by steel from Communist China,' Raese said. 'We are creating a lot of problems in Washington - it's my biggest issue right now.'
Since he has business interests with steel and limestone, Raese said he is keenly aware of some of the problems facing large and small business owners.
'Regulations in our country cost $98 billion a year to small business owners. That's about $2,800 per employee,' Raese said. Deregulation is the key, the candidate suggests, to help unlock the potential for small business growth.
Sunday, March 12, 2006
AK Steel, locked-out union hold meeting
Akron Beacon Journal
AK Steel and the union at its Middletown Works plant returned to the bargaining table Friday for only their third session since union workers were locked out 10 days earlier.The two sides met for about 45 minutes, exchanging information on several issues, company spokesman Alan McCoy said. More talks are expected, but no session was scheduled.The nearly 2,700 members of the Armco Employees Independent Federation have been kept outside the gates since their contract expired at midnight Feb. 28. Salaried employees and replacement workers have been running the mill.
AK Steel and the union at its Middletown Works plant returned to the bargaining table Friday for only their third session since union workers were locked out 10 days earlier.The two sides met for about 45 minutes, exchanging information on several issues, company spokesman Alan McCoy said. More talks are expected, but no session was scheduled.The nearly 2,700 members of the Armco Employees Independent Federation have been kept outside the gates since their contract expired at midnight Feb. 28. Salaried employees and replacement workers have been running the mill.
Saturday, March 11, 2006
Mexican Cement and Canadian Softwood Lumber - A tale of two trade disputes
Dallas Morning News | Business Columnist Jim Landers
Two of the oldest trade feuds with our neighbors are over building materials. We've fought with Mexico since 1990 over low-price imports of cement. We've fought with Canada even longer over low-price lumber.
Building materials costs are soaring, which undercuts arguments that Canadian and Mexican producers are exporting at fire-sale prices. The Gulf Coast is only beginning to rebuild after Hurricanes Katrina and Rita. President Bush meets his counterparts from Mexico and Canada at the end of the month in Cancún.
So are those reasons enough for a truce?
For cement – yes. For lumber – well, even an optimist would say no more than maybe.
Two of the oldest trade feuds with our neighbors are over building materials. We've fought with Mexico since 1990 over low-price imports of cement. We've fought with Canada even longer over low-price lumber.
Building materials costs are soaring, which undercuts arguments that Canadian and Mexican producers are exporting at fire-sale prices. The Gulf Coast is only beginning to rebuild after Hurricanes Katrina and Rita. President Bush meets his counterparts from Mexico and Canada at the end of the month in Cancún.
So are those reasons enough for a truce?
For cement – yes. For lumber – well, even an optimist would say no more than maybe.
Wednesday, March 08, 2006
Truck Driver Shortage Hurts Economy
Layover.com
There's a shortage of 20,000 truck drivers in America and 10% of all the major fleets have trucks sitting up against the fence because of a shortage of drivers.
Three quarters of all the goods in America are shipped by truck and deliveries nationwide are being slowed because of the problem.
Trucking companies are scrambling to find drivers--who must have a commercial driver's license--offering signing bonuses and 401K's. The average annual starting salary for a short haul driver is $37,500, $50,000 for long haul and union drivers make on average about $60,000. Meanwhile, there are 7.4 million Americans out of work. Unquestionably, there is a solution.
There's a shortage of 20,000 truck drivers in America and 10% of all the major fleets have trucks sitting up against the fence because of a shortage of drivers.
Three quarters of all the goods in America are shipped by truck and deliveries nationwide are being slowed because of the problem.
Trucking companies are scrambling to find drivers--who must have a commercial driver's license--offering signing bonuses and 401K's. The average annual starting salary for a short haul driver is $37,500, $50,000 for long haul and union drivers make on average about $60,000. Meanwhile, there are 7.4 million Americans out of work. Unquestionably, there is a solution.
COMPOSITE STEEL PRICE
LATEST FORECASTS FROM MEPS
NORTH AMERICA - ALL PRODUCTS COMPOSITE
Our forecast figures over the next few months have been uprated from the January predictions. This is because the threat from imports has yet to fully materialise. As a result, price levels over the year are now expected to be higher than previously anticipated by approximately 2 percent. It is noteable that we forecast prices in January 2007 at levels below those at the start of this year despite the strong likelihood of improved consumption in the region.
NORTH AMERICA - ALL PRODUCTS COMPOSITE
Our forecast figures over the next few months have been uprated from the January predictions. This is because the threat from imports has yet to fully materialise. As a result, price levels over the year are now expected to be higher than previously anticipated by approximately 2 percent. It is noteable that we forecast prices in January 2007 at levels below those at the start of this year despite the strong likelihood of improved consumption in the region.
Algoma Steel reaches agreement with Paulson, to pay out $200M
This is a strange installment of another soap opera in the steel business, and proof again, if more proof is necessary, that stock investors are not always a good thing for long term investment companies like steel makers.
Now, if stock investors could learn to invest for longer than a calendar quarter it might be a different story, but steel making equipment doesn't pay off in a calendar quarter, and neither does most other investment in this industry.
Yahoo! News
Algoma Steel Inc. (TSX:AGA - news) has settled a fierce proxy battle with its biggest shareholder by agreeing to make a special $200 million cash payment to shareholders.
But, in doing so, it has angered its union. The Sault Ste. Marie-based steelmaker announced Tuesday that it has struck a deal with Paulson & Co. Inc., a New York-based hedge fund which owns a 19 per cent stake in the company. The agreement comes after Algoma CEO Denis Turcotte travelled to New York to meet with Paulson executives this week.
Last year, the northern Ontario steelmaker rejected a proposal from Paulson which outlined how Algoma should pay out more than $400 million in cash to its shareholders.
In response, Paulson launched a proxy battle to replace Algoma's board. That battle was to have been decided at a March 22 meeting, where Algoma's shareholders were to vote on whether to replace the board.
That meeting has been cancelled as a result of Tuesday's deal.
But the deal has angered the United Steelworkers union, which had gone to the Ontario Superior Court in an effort to stop Paulson, whose actions they fear will weaken the company's finances.
The court's decision is still pending.
Now, if stock investors could learn to invest for longer than a calendar quarter it might be a different story, but steel making equipment doesn't pay off in a calendar quarter, and neither does most other investment in this industry.
Yahoo! News
Algoma Steel Inc. (TSX:AGA - news) has settled a fierce proxy battle with its biggest shareholder by agreeing to make a special $200 million cash payment to shareholders.
But, in doing so, it has angered its union. The Sault Ste. Marie-based steelmaker announced Tuesday that it has struck a deal with Paulson & Co. Inc., a New York-based hedge fund which owns a 19 per cent stake in the company. The agreement comes after Algoma CEO Denis Turcotte travelled to New York to meet with Paulson executives this week.
Last year, the northern Ontario steelmaker rejected a proposal from Paulson which outlined how Algoma should pay out more than $400 million in cash to its shareholders.
In response, Paulson launched a proxy battle to replace Algoma's board. That battle was to have been decided at a March 22 meeting, where Algoma's shareholders were to vote on whether to replace the board.
That meeting has been cancelled as a result of Tuesday's deal.
But the deal has angered the United Steelworkers union, which had gone to the Ontario Superior Court in an effort to stop Paulson, whose actions they fear will weaken the company's finances.
The court's decision is still pending.
Monday, March 06, 2006
Dana's Day of Reckoning
BusinessWeek Online via Yahoo!
The pain just keeps coming for the U.S. auto industry. This time, Toledo [Ohio] parts maker Dana filed for Chapter 11 bankruptcy protection, raising fears that the company will be unable to pay its suppliers for parts and keep delivering axles, frame pieces, and other components to Ford and GM.
Part way through this article is a very interesting discussion on how other recent automotive suppliers managed to make their way through Chapter 11. A kind of how-it's-done, in case anyone else plans to go the same route.
Before filing for Chapter 11 last fall, Delphi paid many of its suppliers well in advance, Fitzgerald says. Delphi also established a list of 140 key suppliers -- those who would cause major problems to the supply chain if they had liquidity problems -- and paid their pre-petition debt.
Then Delphi guaranteed to pay up to 70% of the pre-petition debt for its remaining suppliers over two years. "Delphi is the model," says Fitzgerald. "They did a miraculous job of protecting their suppliers."
If Dana does the same, it has a better chance of continuing to deliver products to key customers like Ford and GM without interruption.
The pain just keeps coming for the U.S. auto industry. This time, Toledo [Ohio] parts maker Dana filed for Chapter 11 bankruptcy protection, raising fears that the company will be unable to pay its suppliers for parts and keep delivering axles, frame pieces, and other components to Ford and GM.
Part way through this article is a very interesting discussion on how other recent automotive suppliers managed to make their way through Chapter 11. A kind of how-it's-done, in case anyone else plans to go the same route.
Before filing for Chapter 11 last fall, Delphi paid many of its suppliers well in advance, Fitzgerald says. Delphi also established a list of 140 key suppliers -- those who would cause major problems to the supply chain if they had liquidity problems -- and paid their pre-petition debt.
Then Delphi guaranteed to pay up to 70% of the pre-petition debt for its remaining suppliers over two years. "Delphi is the model," says Fitzgerald. "They did a miraculous job of protecting their suppliers."
If Dana does the same, it has a better chance of continuing to deliver products to key customers like Ford and GM without interruption.
Union, AK Steel To Talk Again Today
A discussion about whether to have a discussion .... sounds like they still have a ways to go.
WTOV9.com
A-K Steel and the union for its locked out Middletown workers plan to talk again today.
On the agenda is whether the sides will schedule negotiations.
WTOV9.com
A-K Steel and the union for its locked out Middletown workers plan to talk again today.
On the agenda is whether the sides will schedule negotiations.
Friday, March 03, 2006
Dana files for bankruptcy protection
Another automotive supplier bites the dust ...
www.purchasing.com
Dana of Toledo, Ohio, today became the latest auto-parts maker to file for bankruptcy protection for its U.S. operations.
[...]
The company said it filed for Chapter 11 protection so it could fix financial and operational problems. Delphi, the nation's leading parts supplier, filed for Chapter 11 bankruptcy protection in October. Visteon, the nation's second biggest auto parts supplier, is closing three plants and putting six more up for sale under its restructuring plan.
www.purchasing.com
Dana of Toledo, Ohio, today became the latest auto-parts maker to file for bankruptcy protection for its U.S. operations.
[...]
The company said it filed for Chapter 11 protection so it could fix financial and operational problems. Delphi, the nation's leading parts supplier, filed for Chapter 11 bankruptcy protection in October. Visteon, the nation's second biggest auto parts supplier, is closing three plants and putting six more up for sale under its restructuring plan.
ATI Allegheny Ludlum increases stainless steel prices
Here come the stainless price increases.
By auto exhaust alloy sheet and strip products , I assume they mean 409.
Metals News - Metals Place - from ATI Press release
Allegheny Technologies Incorporated announced Thursday that ATI Allegheny Ludlum is increasing selling prices for cold-rolled stainless steel sheet and strip products, including duplex alloys and auto exhaust alloys. Allegheny Ludlum is also increasing selling prices for stainless steel plate, tool steel, and hot-rolled sheet products.
The following price increases are effective with shipments beginning March 20, 2006:
- Selling prices for 200 series, 300 series, and non-automotive 400 series stainless steel sheet and strip products are being increased by approximately 3%.
- Selling prices for AL 2003(TM) lean duplex alloy and AL 2205(TM) duplex alloy sheet, strip, and plate products are being increased by approximately 3%.
- Selling prices for auto exhaust alloy sheet and strip products are being increased by approximately 6%.
- Selling prices for stainless steel plate-mill-plate products are being increased by approximately 4%.
- Selling prices for stainless steel continuous-mill-plate, hot-rolled sheet, and hot-rolled tubular quality coil products are being increased by approximately 6%.
- Selling prices for tool steel products are being increased by approximately 5%.
All surcharges will remain in effect. These increases are necessary to offset rising manufacturing costs and to support capital investments and growth.
By auto exhaust alloy sheet and strip products , I assume they mean 409.
Metals News - Metals Place - from ATI Press release
Allegheny Technologies Incorporated announced Thursday that ATI Allegheny Ludlum is increasing selling prices for cold-rolled stainless steel sheet and strip products, including duplex alloys and auto exhaust alloys. Allegheny Ludlum is also increasing selling prices for stainless steel plate, tool steel, and hot-rolled sheet products.
The following price increases are effective with shipments beginning March 20, 2006:
- Selling prices for 200 series, 300 series, and non-automotive 400 series stainless steel sheet and strip products are being increased by approximately 3%.
- Selling prices for AL 2003(TM) lean duplex alloy and AL 2205(TM) duplex alloy sheet, strip, and plate products are being increased by approximately 3%.
- Selling prices for auto exhaust alloy sheet and strip products are being increased by approximately 6%.
- Selling prices for stainless steel plate-mill-plate products are being increased by approximately 4%.
- Selling prices for stainless steel continuous-mill-plate, hot-rolled sheet, and hot-rolled tubular quality coil products are being increased by approximately 6%.
- Selling prices for tool steel products are being increased by approximately 5%.
All surcharges will remain in effect. These increases are necessary to offset rising manufacturing costs and to support capital investments and growth.
Wednesday, March 01, 2006
AK Steel Locks Out Union Workers
Yahoo! News
AK Steel locked out nearly 2,700 hourly workers after their contract expired without a new agreement early Wednesday, and will use temporary workers to continue filling orders, a company spokesman said.
AK Steel locked out nearly 2,700 hourly workers after their contract expired without a new agreement early Wednesday, and will use temporary workers to continue filling orders, a company spokesman said.
