Monday, July 31, 2006
Stainless Steel Users Search for Substitute Materials due to High Prices
I usually quote only the beginning or a few paragraphs of these reports but almost everything in this synopsis is important to stampers, so I basically included it all.
Material substitution is always an option for a stamper, but it usually takes a lot of work with the customer designer and the supplier to negotiate a change in raw material. Not something one does lightly, but occasionally necessary when material prices go through the roof.
I know I've pointed this out before, but it was months ago ... it's worth mentioning again. I run a small metal stamping shop. We use slide forming machines to get our stamping done. Slide forming machines are more sparing of expensive materials because they, as a general rule, don't use a carrier strip to get their work done. So there's less scrap. To check out slideforming some more, follow this slideforming link.
MEPS - Stainless Steel Review
Nickel prices have retreated somewhat from the record high they reached earlier this month. Although the price drew back from crossing the $US30,000 per tonne mark, it remains at over $US27,000 (cash buyer price) at the time of writing. Such elevated prices are causing increasing concern to stainless producers and their customers.
As a result of nickel’s price surge, stainless mills have already announced increased alloy surcharges for August sales. In Europe and North America, surcharges for type 304 flat products have almost doubled since January, and they seem certain to rise again in September. Along with hikes in basis figures, this has propelled transaction values for many nickel-bearing grades to record highs.
Therefore it is not surprising that users of austenitic grades are casting around for alternatives and examining whether they could cut costs by switching to other materials. Stainless producers say they have not witnessed much substitution so far. This is partly because the price of many replacement materials has also gone up significantly.
Among stainless steel’s rivals, copper prices have risen by almost 60 percent so far this year and also stand at record high levels. Galvanized steel sheet prices are currently about 40 percent above those of January, largely because of a 52 percent increase in the price of zinc.
Perhaps the most attractive alternative to stainless is aluminium, where the London Metal Exchange price in late July was a mere 3 percent up on its January figure.
They may be playing it down, but it is clear that some mills are concerned about long-term loss of market share. Stainless producers themselves are offering their customers a range of alternatives in an effort to prevent business being lost to non-ferrous or carbon steel materials. Such options include lower-nickel duplex grades and ferritic types. In the meantime, nickel’s fluctuations will continue to create problems for the stainless industry worldwide.
Material substitution is always an option for a stamper, but it usually takes a lot of work with the customer designer and the supplier to negotiate a change in raw material. Not something one does lightly, but occasionally necessary when material prices go through the roof.
I know I've pointed this out before, but it was months ago ... it's worth mentioning again. I run a small metal stamping shop. We use slide forming machines to get our stamping done. Slide forming machines are more sparing of expensive materials because they, as a general rule, don't use a carrier strip to get their work done. So there's less scrap. To check out slideforming some more, follow this slideforming link.
MEPS - Stainless Steel Review
Nickel prices have retreated somewhat from the record high they reached earlier this month. Although the price drew back from crossing the $US30,000 per tonne mark, it remains at over $US27,000 (cash buyer price) at the time of writing. Such elevated prices are causing increasing concern to stainless producers and their customers.
As a result of nickel’s price surge, stainless mills have already announced increased alloy surcharges for August sales. In Europe and North America, surcharges for type 304 flat products have almost doubled since January, and they seem certain to rise again in September. Along with hikes in basis figures, this has propelled transaction values for many nickel-bearing grades to record highs.
Therefore it is not surprising that users of austenitic grades are casting around for alternatives and examining whether they could cut costs by switching to other materials. Stainless producers say they have not witnessed much substitution so far. This is partly because the price of many replacement materials has also gone up significantly.
Among stainless steel’s rivals, copper prices have risen by almost 60 percent so far this year and also stand at record high levels. Galvanized steel sheet prices are currently about 40 percent above those of January, largely because of a 52 percent increase in the price of zinc.
Perhaps the most attractive alternative to stainless is aluminium, where the London Metal Exchange price in late July was a mere 3 percent up on its January figure.
They may be playing it down, but it is clear that some mills are concerned about long-term loss of market share. Stainless producers themselves are offering their customers a range of alternatives in an effort to prevent business being lost to non-ferrous or carbon steel materials. Such options include lower-nickel duplex grades and ferritic types. In the meantime, nickel’s fluctuations will continue to create problems for the stainless industry worldwide.
Thursday, July 27, 2006
Delphi departures at 1,000 so far
Tribune-Chronicle
Nearly 1,000 Delphi Packard Electric union workers had signed up for one of five programs to leave the auto parts maker as of Wednesday morning, a union official said.
Some 956 production and skilled trades workers planned to take retirement or a buyout [...]
The number is an increase of 270 in less than a week since the division’s July 20 count of 686.
[B]ankrupt parent Delphi Corp says it wants to cut Packard‘s 3,800 union work force to 1,033
Nearly 1,000 Delphi Packard Electric union workers had signed up for one of five programs to leave the auto parts maker as of Wednesday morning, a union official said.
Some 956 production and skilled trades workers planned to take retirement or a buyout [...]
The number is an increase of 270 in less than a week since the division’s July 20 count of 686.
[B]ankrupt parent Delphi Corp says it wants to cut Packard‘s 3,800 union work force to 1,033
AK Steel to Increase Stainless Steel Product Prices by About 6 Percent
Financial News - Yahoo! Finance
AK Steel Holding Corp. said Tuesday that it will increase prices for all hot-rolled and cold-rolled stainless steel sheet, strip, tubular quality and continuous mill plate products by about 6 percent.
AK Steel Holding Corp. said Tuesday that it will increase prices for all hot-rolled and cold-rolled stainless steel sheet, strip, tubular quality and continuous mill plate products by about 6 percent.
US Steel, AK Steel post strong rise in profit
(phillyBurbs.com) | Pennsylvania News
United States Steel and AK Steel on Tuesday reported strong increases in second-quarter profit, and the industry forecast even bigger third-quarter gains.
U.S. Steel posted a 64 percent increase in earnings, and AK Steel, which has locked out union workers at its biggest mill for nearly five months, said its profit more than tripled.
United States Steel and AK Steel on Tuesday reported strong increases in second-quarter profit, and the industry forecast even bigger third-quarter gains.
U.S. Steel posted a 64 percent increase in earnings, and AK Steel, which has locked out union workers at its biggest mill for nearly five months, said its profit more than tripled.
AK Steel Workers To Vote On Representation - Yahoo! News
I'm surprised at how long this strike has been going on. We're coming up on 5 months now.
As I understand it, this vote won't end the strike/lockout/whatever, but only decide who gets to speak for the strikers.
Yahoo! News
Workers locked out of the AK Steel plant will get a chance to vote this week on their union affiliation.
The Armco Employees Independent Federation currently represents the workers, who have been locked out of the steel plant since midnight on Feb. 28.
The workers will vote Wednesday and Thursday on four choices:
AEIF
International Association of Machinists
United Steelworkers of America
No union affiliation
As I understand it, this vote won't end the strike/lockout/whatever, but only decide who gets to speak for the strikers.
Yahoo! News
Workers locked out of the AK Steel plant will get a chance to vote this week on their union affiliation.
The Armco Employees Independent Federation currently represents the workers, who have been locked out of the steel plant since midnight on Feb. 28.
The workers will vote Wednesday and Thursday on four choices:
AEIF
International Association of Machinists
United Steelworkers of America
No union affiliation
HOSTILE MITTAL BID FOR ARCELOR MAY HINDER FUTURE STEEL CONSOLIDATION
MEPS STEEL NEWS
The Mittal Steel merger with Arcelor is coming close to completion. The new organisation will make almost 120 million tonnes per year of crude steel. Many industry executives have said they expect to see the emergence of several companies of a similar size as the process of consolidation moves forward.
At present, however, it is difficult to see where the next 100 million tonne steel company will come from. Merging the world’s two top consolidators – Mittal and Arcelor – could in fact slow the process down. Many steel companies around the world have taken steps to deter hostile takeover bids from Mittal or those keen to imitate it.
Because of its future growth potential, India is said to be high on many steel companies’ list of attractive markets. Here the Tata business group has moved to increase its holding in Tata Steel from its current level of 27 percent to deter any hostile takeover bid.
Major Japanese mills Nippon Steel, Sumitomo Metals and Kobe Steel have strengthened their cross-shareholdings. According to some reports, they have also reached an understanding that, in the event of a hostile bid for any one of them, the other two would offer a higher price per share. Nippon Steel also has a looser alliance with Posco and Baosteel.
In Europe, several steel makers have reacted to Mittal’s move on Arcelor by adopting measures to protect themselves from unwanted attentions. These range from share allocations for employees to buying back shares in order to take them off the market. So-called “poison pill� defences have been adopted by some North American steel companies.
Many steel producers say they want consolidation – but strictly on their own terms.
The Mittal Steel merger with Arcelor is coming close to completion. The new organisation will make almost 120 million tonnes per year of crude steel. Many industry executives have said they expect to see the emergence of several companies of a similar size as the process of consolidation moves forward.
At present, however, it is difficult to see where the next 100 million tonne steel company will come from. Merging the world’s two top consolidators – Mittal and Arcelor – could in fact slow the process down. Many steel companies around the world have taken steps to deter hostile takeover bids from Mittal or those keen to imitate it.
Because of its future growth potential, India is said to be high on many steel companies’ list of attractive markets. Here the Tata business group has moved to increase its holding in Tata Steel from its current level of 27 percent to deter any hostile takeover bid.
Major Japanese mills Nippon Steel, Sumitomo Metals and Kobe Steel have strengthened their cross-shareholdings. According to some reports, they have also reached an understanding that, in the event of a hostile bid for any one of them, the other two would offer a higher price per share. Nippon Steel also has a looser alliance with Posco and Baosteel.
In Europe, several steel makers have reacted to Mittal’s move on Arcelor by adopting measures to protect themselves from unwanted attentions. These range from share allocations for employees to buying back shares in order to take them off the market. So-called “poison pill� defences have been adopted by some North American steel companies.
Many steel producers say they want consolidation – but strictly on their own terms.
Monday, July 17, 2006
Court halts pay of Canada lumber duty to US firms
Don't you just love it when one part of the government slaps an injunction on another part?
And why do injunctions slap anyways?
Yahoo News
The U.S. Court of International Law slapped an injunction on the United States government preventing it from handing over any more duties from Canadian softwood lumber imports to U.S. industry competitors.
...
The Court of International Law ruled in April that by paying softwood duties from Canadian companies to U.S. ones, the United States had violated part of the North American Free Trade Agreement implementation Act.
And why do injunctions slap anyways?
Yahoo News
The U.S. Court of International Law slapped an injunction on the United States government preventing it from handing over any more duties from Canadian softwood lumber imports to U.S. industry competitors.
...
The Court of International Law ruled in April that by paying softwood duties from Canadian companies to U.S. ones, the United States had violated part of the North American Free Trade Agreement implementation Act.
Wednesday, July 12, 2006
North American Average Carbon Steel Prices
Latest Forecasts From MEPS
The extended delivery lead times and full order books prompted us to upgrade our forecast for the North American average flat products price. Import quotations have been rising in line with the upward trend in local values. Consequently, the import threat is not increasing.
They believe that, by 2007, prices should settle slightly but not all that much. You can read more details by following the link above.
The extended delivery lead times and full order books prompted us to upgrade our forecast for the North American average flat products price. Import quotations have been rising in line with the upward trend in local values. Consequently, the import threat is not increasing.
They believe that, by 2007, prices should settle slightly but not all that much. You can read more details by following the link above.
Wednesday, July 05, 2006
ThyssenKrupp on the prowl
International Herald Tribune
ThyssenKrupp, the biggest German steel maker, said Tuesday that it might use a €700 million share buyback in what it described as a possible "major" takeover.
ThyssenKrupp's move comes just days after Mittal Steel agreed to buy Arcelor for €26.9 billion, raising expectations of more takeovers in the industry.
ThyssenKrupp, the biggest German steel maker, said Tuesday that it might use a €700 million share buyback in what it described as a possible "major" takeover.
ThyssenKrupp's move comes just days after Mittal Steel agreed to buy Arcelor for €26.9 billion, raising expectations of more takeovers in the industry.
Copper Rises on Speculation Fed Rate Pause May Boost Demand
Bloomberg.com
Copper rose in London amid optimism that a possible pause in U.S. interest rate increases may help boost demand for metals. Nickel and zinc also advanced.
Nickel is used extensively in Stainless Steel. Some chinese produces of SS are cutting back. That may help in a while. The article contains more details.
Copper rose in London amid optimism that a possible pause in U.S. interest rate increases may help boost demand for metals. Nickel and zinc also advanced.
Nickel is used extensively in Stainless Steel. Some chinese produces of SS are cutting back. That may help in a while. The article contains more details.
