Wednesday, January 31, 2007
Paulson: China must speed money reform
Actually, the best line is not the subject line but this one:
Treasury Secretary Henry Paulson told Congress on Wednesday that the Bush administration was doing all it could to get China to move more quickly on currency reform in the face of a soaring U.S. trade deficit.
But clearly it's not. The administration could label China a currency manipulator, which it clearly is.
Treasury Secretary Henry Paulson told Congress on Wednesday that the Bush administration was doing all it could to get China to move more quickly on currency reform in the face of a soaring U.S. trade deficit.
But clearly it's not. The administration could label China a currency manipulator, which it clearly is.
Monday, January 29, 2007
GLOBAL STEEL OUTPUT WILL RISE BY MORE THAN 5 PERCENT IN 2007
MEPS
World crude steel production will show an increase of almost 10 percent in 2006 year on year. In 2007 a further 5.4 percent growth rate is anticipated. The past seven years of this millennium have been the most productive in the history of the steel industry - rising by more than 450 million tonnes over the period. This equates to 57 percent growth in output over the figure recorded in 1999.
MEPS is now forecasting world wide crude steel making in 2007 at in excess of 1.3 billion tonnes (1307 million tonnes). The oxygen/blast furnace process will continue to lift its share of manufacturing - rising by 11 percent in 2006 and almost 7 percent in 2007 to 873 and 932.5 million tonnes, respectively. We predict substantial growth in the supply of direct reduced iron in 2007 as demand continues to expand.
In 2006, most steel producing nations benefitted from the surge in consumption. Those in Asia, however, took the lion’s share, with 75 percent of the increase. This figure is expected to rise to around 90 percent in 2007.
World crude steel production will show an increase of almost 10 percent in 2006 year on year. In 2007 a further 5.4 percent growth rate is anticipated. The past seven years of this millennium have been the most productive in the history of the steel industry - rising by more than 450 million tonnes over the period. This equates to 57 percent growth in output over the figure recorded in 1999.
MEPS is now forecasting world wide crude steel making in 2007 at in excess of 1.3 billion tonnes (1307 million tonnes). The oxygen/blast furnace process will continue to lift its share of manufacturing - rising by 11 percent in 2006 and almost 7 percent in 2007 to 873 and 932.5 million tonnes, respectively. We predict substantial growth in the supply of direct reduced iron in 2007 as demand continues to expand.
In 2006, most steel producing nations benefitted from the surge in consumption. Those in Asia, however, took the lion’s share, with 75 percent of the increase. This figure is expected to rise to around 90 percent in 2007.
Sunday, January 28, 2007
Governor coming to talk with AK Steel, locked-out workers
www.pulsejournal.com
Gov. Ted Strickland is coming here Saturday to discuss the ongoing labor dispute between AK Steel and its labor union, city and county leaders confirmed today.
Representatives from Strickland's office could not be reached for comment.
And yet, later, it seems the meeting didn't occur.
Strickland cancels visit to Middletown to discuss lockout
Ohio Gov. Ted Strickland has cancelled his visit to Middletown, where he, City Council members, county officials and representatives from AK Steel Corp. and its hourly work force union were scheduled to discuss the nearly yearlong labor dispute.
Councilmen Anthony "Tony" Marconi, David Schiavone and Jim Armbruster, each of whom were planning to attend the Saturday morning meeting, received calls this morning from Strickland's office that said they intended to reschedule the discussion.
And I don't understand this double-talk:
Officials from AK Steel Corp. on Thursday said they would refuse to meet with Ohio's new governor under the setting initially planned for Saturday, saying the meeting would not help end the ongoing labor dispute, and that it could be counterproductive to negotiations.
Alan McCoy, the company's vice president of government and public relations, said AK Steel officials told representatives from the governor's office they would be willing to meet with them privately "about this or any other issue."
AK officials snub meeting
Officials from AK Steel Corp. have refused to meet with Ohio Gov. Ted Strickland, union representatives, and city and county leaders to discuss the nearly 11-month labor dispute at Middletown's largest employer.
Gov. Ted Strickland is coming here Saturday to discuss the ongoing labor dispute between AK Steel and its labor union, city and county leaders confirmed today.
Representatives from Strickland's office could not be reached for comment.
And yet, later, it seems the meeting didn't occur.
Strickland cancels visit to Middletown to discuss lockout
Ohio Gov. Ted Strickland has cancelled his visit to Middletown, where he, City Council members, county officials and representatives from AK Steel Corp. and its hourly work force union were scheduled to discuss the nearly yearlong labor dispute.
Councilmen Anthony "Tony" Marconi, David Schiavone and Jim Armbruster, each of whom were planning to attend the Saturday morning meeting, received calls this morning from Strickland's office that said they intended to reschedule the discussion.
And I don't understand this double-talk:
Officials from AK Steel Corp. on Thursday said they would refuse to meet with Ohio's new governor under the setting initially planned for Saturday, saying the meeting would not help end the ongoing labor dispute, and that it could be counterproductive to negotiations.
Alan McCoy, the company's vice president of government and public relations, said AK Steel officials told representatives from the governor's office they would be willing to meet with them privately "about this or any other issue."
AK officials snub meeting
Officials from AK Steel Corp. have refused to meet with Ohio Gov. Ted Strickland, union representatives, and city and county leaders to discuss the nearly 11-month labor dispute at Middletown's largest employer.
Saturday, January 27, 2007
Big mineral find made China build Tibet rail
This is interesting. It could reduce chinese dependence on foreign raw materials. And create even more tension with the Tibet region.
www.phayul.com
What motivated China to spend a colossal $3.7 billion on the Tibet railway? At least one of the secret reasons has now tumbled out. Chinese geologists have disclosed having found 16 large copper, lead, zinc, iron ore and, possibly, crude oil deposits along the Qinghai-Tibet railway. The deposits promise to reduce China’s dependence on minerals from several countries, including India.
Critics had questioned China’s claim that development of Tibet was the sole purpose behind the investment, which is not likely to be realised through income from passenger traffic. Some of the reasons cited were Beijing’s need to integrate Tibet with the Chinese mainland and improve military capabilities along the Himalayan border touching India, Nepal and Myanmar.
The deposits are expected to yield 18 million tonnes of copper and 10 million tonnes of lead and zinc, Meng Xianlai, director of the China Geological Survey, has announced. China is starved of mineral resources to feed its burgeoning industry and spends several billion dollars a year on imports.
www.phayul.com
What motivated China to spend a colossal $3.7 billion on the Tibet railway? At least one of the secret reasons has now tumbled out. Chinese geologists have disclosed having found 16 large copper, lead, zinc, iron ore and, possibly, crude oil deposits along the Qinghai-Tibet railway. The deposits promise to reduce China’s dependence on minerals from several countries, including India.
Critics had questioned China’s claim that development of Tibet was the sole purpose behind the investment, which is not likely to be realised through income from passenger traffic. Some of the reasons cited were Beijing’s need to integrate Tibet with the Chinese mainland and improve military capabilities along the Himalayan border touching India, Nepal and Myanmar.
The deposits are expected to yield 18 million tonnes of copper and 10 million tonnes of lead and zinc, Meng Xianlai, director of the China Geological Survey, has announced. China is starved of mineral resources to feed its burgeoning industry and spends several billion dollars a year on imports.
Labels: Copper
Is change good?
capecodonline
A penny costs about 1.73 cents these days, with the metals used, zinc and copper, accounting for 1.12 cents of production costs.
According to the latest U.S. Mint figures, a nickel costs the government 8.34 cents to make. The cost of the metals - copper and nickel - account for 6.99 cents.
Spurred to cogitation, a noted economist has just floated the idea of making pennies worth 5 cents, and ceasing production of nickels altogether.
A penny costs about 1.73 cents these days, with the metals used, zinc and copper, accounting for 1.12 cents of production costs.
According to the latest U.S. Mint figures, a nickel costs the government 8.34 cents to make. The cost of the metals - copper and nickel - account for 6.99 cents.
Spurred to cogitation, a noted economist has just floated the idea of making pennies worth 5 cents, and ceasing production of nickels altogether.
Coin Shortage Means a Penny Could Be Worth 5 Cents Soon
FOXNews.com
A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the Federal Reserve Bank of Chicago.
Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.
Such a risk spurred the U.S. Mint last month to issue regulations limiting melting and exporting of the coins.
A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the Federal Reserve Bank of Chicago.
Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.
Such a risk spurred the U.S. Mint last month to issue regulations limiting melting and exporting of the coins.
Tough talks expected for new car
Tribune-Chronicle
In a time of wrenching area job losses, the General Motors Corp. Lordstown Complex has been one of the few rocks on which the local economy rests.
That rock could start cracking if workers and company fail to reach a new labor agreement quickly, a labor official said Friday during an 2007 outlook interview with the complex’s top leadership.
‘‘It won’t be an easy year,’’ said Jim Graham, president of United Auto Workers Local 1112, which represents workers at the East assembly plant. ‘‘We have to get a new contract, and get it soon. Things are starting to snowball in Detroit. It’s critical to get it done.’’
This was a little unclear to me at first, but the article goes on to explain that a long-running car is due to end at that facility in 2009. Typically, car companies decide 2 years in advance which cars are going to be built at which facilities, making performance in 2007 crucial to the future after 2009.
In a time of wrenching area job losses, the General Motors Corp. Lordstown Complex has been one of the few rocks on which the local economy rests.
That rock could start cracking if workers and company fail to reach a new labor agreement quickly, a labor official said Friday during an 2007 outlook interview with the complex’s top leadership.
‘‘It won’t be an easy year,’’ said Jim Graham, president of United Auto Workers Local 1112, which represents workers at the East assembly plant. ‘‘We have to get a new contract, and get it soon. Things are starting to snowball in Detroit. It’s critical to get it done.’’
This was a little unclear to me at first, but the article goes on to explain that a long-running car is due to end at that facility in 2009. Typically, car companies decide 2 years in advance which cars are going to be built at which facilities, making performance in 2007 crucial to the future after 2009.
Auto-parts maker files for receivership
JS Online
A central city company owned by two of Milwaukee's prominent African-American leaders filed for receivership this week and told the state it might have to close its factory in the Riverwest neighborhood.
The company filed for receivership this week and told the state it might have to close its factory in Milwaukee's Riverwest neighborhood.
Virgis and Angela Colbert's Production Stamping Corp. said it is not able to meet its financial obligations
A central city company owned by two of Milwaukee's prominent African-American leaders filed for receivership this week and told the state it might have to close its factory in the Riverwest neighborhood.
The company filed for receivership this week and told the state it might have to close its factory in Milwaukee's Riverwest neighborhood.
Virgis and Angela Colbert's Production Stamping Corp. said it is not able to meet its financial obligations
Friday, January 26, 2007
More layoffs expected at Arvin Meritor
Another wave of layoffs at a Heartland plant; this time dozens in Dexter prepare to hit the unemployment line. The auto industry slump begins to wear thin on Southeast Missouri plant workers.
This is actually the third round of cuts at Arvin Meritor; a company that makes auto parts. The first round hit in November last year. Then in December, plant managers gave more people pink slips. This latest round, set to happen Friday will take about 45 more jobs.
This is actually the third round of cuts at Arvin Meritor; a company that makes auto parts. The first round hit in November last year. Then in December, plant managers gave more people pink slips. This latest round, set to happen Friday will take about 45 more jobs.
Wednesday, January 24, 2007
Add a Yahoo Alert!
I've created a link, up near the top of the page, where you can click to subscribe to a Yahoo service that will send you email when this blog is updated.
Tell me if you like it.
Tell me if you like it.
Saturday, January 20, 2007
GOP sheriff asks Democrats to help resolve AK Steel lockout
A side of labour actions that you don't normally see. .... the sheriff gets involved.
Akron Beacon Journal - Akron
Sheriff Rick Jones has written letters to Gov. Ted Strickland and U.S. Sen. Sherrod Brown, both Democrats who won GOP-held seats on Nov. 7, and asked them to intervene.
'It is of the utmost importance that you intervene in the negotiations to bring this 11-month-old lockout to a productive conclusion. Our community needs your help and support,' Jones wrote. 'I know it's very strange that a local Republican sheriff would ask two of the most powerful Democrats in the state of Ohio to do something, but I am.'
"You drive by, you see these people still sitting outside (AK's plant). It's pitiful, and it's affecting the whole area," Jones said. "People have been asking for extensions on their child support payments. Businesses are hurting.
"And our office, we're the ones who have to set these people's furniture out on the street when we have to sell their houses out from underneath them when they can't afford the payments anymore."
Akron Beacon Journal - Akron
Sheriff Rick Jones has written letters to Gov. Ted Strickland and U.S. Sen. Sherrod Brown, both Democrats who won GOP-held seats on Nov. 7, and asked them to intervene.
'It is of the utmost importance that you intervene in the negotiations to bring this 11-month-old lockout to a productive conclusion. Our community needs your help and support,' Jones wrote. 'I know it's very strange that a local Republican sheriff would ask two of the most powerful Democrats in the state of Ohio to do something, but I am.'
"You drive by, you see these people still sitting outside (AK's plant). It's pitiful, and it's affecting the whole area," Jones said. "People have been asking for extensions on their child support payments. Businesses are hurting.
"And our office, we're the ones who have to set these people's furniture out on the street when we have to sell their houses out from underneath them when they can't afford the payments anymore."
Tuesday, January 16, 2007
Chinese steel prices start 2007 with strong gains
It isn't clear how significant this is going to be ...
www.mineweb.net
Chinese steel spot prices have taken off at the start of 2007, especially for hot-rolled coil. Hot-rolled coil spot prices rose to $449/t ex-Vat, up 2.9% WoW and 7.3% MoM. The reasons for such a strong recovery in domestic prices appear to be high exports and low domestic stocks, following a sustained period of destocking. There are also signs of a recovery in domestic steel demand after a period of weakness last year.
One of the things that's ticked me off for a while now is the uneven way tarrifs are applied. Steel is tarrifed if it comes from China, but finished goods made from steel are not, so our direct customers can circumvent us and our entire supply chain by buying finished goods from China.
And with Chinese steel about 25% below North American steel, my customers could get finished parts recently for less than my raw material costs.
This may change that, at least somewhat.
www.mineweb.net
Chinese steel spot prices have taken off at the start of 2007, especially for hot-rolled coil. Hot-rolled coil spot prices rose to $449/t ex-Vat, up 2.9% WoW and 7.3% MoM. The reasons for such a strong recovery in domestic prices appear to be high exports and low domestic stocks, following a sustained period of destocking. There are also signs of a recovery in domestic steel demand after a period of weakness last year.
One of the things that's ticked me off for a while now is the uneven way tarrifs are applied. Steel is tarrifed if it comes from China, but finished goods made from steel are not, so our direct customers can circumvent us and our entire supply chain by buying finished goods from China.
And with Chinese steel about 25% below North American steel, my customers could get finished parts recently for less than my raw material costs.
This may change that, at least somewhat.
Swagelok to market super stainless steel
The Plain Dealer
Swagelok Co. is preparing to market what it calls a breakthrough metallurgical technology that could make high-carbon, high-performance stainless steel.
[...]it has formed a subsidiary to commercialize a stainless steel heat-treating process it has used since 2000.
The new company, which has not been named yet, will be located in Greater Cleveland, said a spokeswoman. Its top officers -- including the engineer involved in developing the process -- will be shifted from the parent company. The patented procedure yields a very hard stainless steel alloy with superior corrosion resistance -- a combination that the industry has traditionally not been able to produce.
Here is a more technical description of it, for those who are interested.
Swagelok Co. is preparing to market what it calls a breakthrough metallurgical technology that could make high-carbon, high-performance stainless steel.
[...]it has formed a subsidiary to commercialize a stainless steel heat-treating process it has used since 2000.
The new company, which has not been named yet, will be located in Greater Cleveland, said a spokeswoman. Its top officers -- including the engineer involved in developing the process -- will be shifted from the parent company. The patented procedure yields a very hard stainless steel alloy with superior corrosion resistance -- a combination that the industry has traditionally not been able to produce.
Here is a more technical description of it, for those who are interested.
Friday, January 05, 2007
Nice picture of Stelco at night
Stamping Out a Living in the news
I was interviewed and later quoted in the trade press recently.
American Metal Market
January 3, 2007
Feb. stainless surcharge increase sparking fears
By Maria Guzzo
They asked me if material substitutions away from stainless were an issue for us or our customers. We're mostly small parts manufacturers, so I said no. The raw material content relative to die cost meant that people wouldn't change for what they might perceive as a momentary blip in pricing. And if they were to switch, what would they switch to? If they want rust proofing, they still need something. If they switch to carbon steel, Zinc is also up.
And I commented on how so much of the recent run-up in metals pricing is driven by speculators who don't know the market, and don't realize how much damage is done to the market by this kind of uncertainty.
We also talked about China and differential tarifs.
Unfortunately, their web site policies prevent me from quoting from the article. I think you might be able to follow this link if you are a subscriber, but I can't verify that.
AMM is a subscription service for people "in metals". There is a trial 2 weeks subscription you can try out.
I've written and asked if they can make an exception in this case, so I can blog a quote to my own comments. If they agree, I'll change this article appropriately. In any case, check them out. If your business has a lot to do with metals, they might be worth the entry price. At least do the trial. It's 2 weeks of daily articles emailed to you in PDF form, and a web site you can look things up on.
American Metal Market
January 3, 2007
Feb. stainless surcharge increase sparking fears
By Maria Guzzo
They asked me if material substitutions away from stainless were an issue for us or our customers. We're mostly small parts manufacturers, so I said no. The raw material content relative to die cost meant that people wouldn't change for what they might perceive as a momentary blip in pricing. And if they were to switch, what would they switch to? If they want rust proofing, they still need something. If they switch to carbon steel, Zinc is also up.
And I commented on how so much of the recent run-up in metals pricing is driven by speculators who don't know the market, and don't realize how much damage is done to the market by this kind of uncertainty.
We also talked about China and differential tarifs.
Unfortunately, their web site policies prevent me from quoting from the article. I think you might be able to follow this link if you are a subscriber, but I can't verify that.
AMM is a subscription service for people "in metals". There is a trial 2 weeks subscription you can try out.
I've written and asked if they can make an exception in this case, so I can blog a quote to my own comments. If they agree, I'll change this article appropriately. In any case, check them out. If your business has a lot to do with metals, they might be worth the entry price. At least do the trial. It's 2 weeks of daily articles emailed to you in PDF form, and a web site you can look things up on.
Rosie the Riveter
I was surprised to find out that people don't know who Rosie the Riveter was.
There is a Rosie the Riveter web site.
And an interesting wikipedia article on her.
There wasn't a specific Rosie. The name refers to an entire generation of women who went into the factory to produce war goods once the US entered the second world war and there was a shortage of trained men.
The image on the left is the one most often associated with Rosie (thanks to wikipedia for it).
There is a Rosie the Riveter web site.
And an interesting wikipedia article on her.
There wasn't a specific Rosie. The name refers to an entire generation of women who went into the factory to produce war goods once the US entered the second world war and there was a shortage of trained men.
The image on the left is the one most often associated with Rosie (thanks to wikipedia for it).
Rosie the Riveter better watch out
I ran across this interesting blog today. Mona is a ductwork worker, an apprentice, one of only 3 women in her union.
When I first decided to get into the trades, I really wasn't sure where it would take me, or how much I would get out of it. Once I actually started work and realized the general simplicity of it, I wondered if it would keep my interest. Generally we fabricate and install ventilation in commercial buildings.
I'm glad to see women going into trades. Hell, at this moment, I'm glad to see anyone going into trades!
But women ... my mother always got upset at tradespeople who come into your house, make a mess and don't clean up after themselves, leaving it to the homeowner to clean up those little bits of plastic insulation or the little bits of gyprock dust leftover. Wonder if Mona cleans up after herself.
And her blog is nice! She uses pictures and so on to punctuate her blog entries. And she's a Canadian. What more could you want?
When I first decided to get into the trades, I really wasn't sure where it would take me, or how much I would get out of it. Once I actually started work and realized the general simplicity of it, I wondered if it would keep my interest. Generally we fabricate and install ventilation in commercial buildings.
I'm glad to see women going into trades. Hell, at this moment, I'm glad to see anyone going into trades!
But women ... my mother always got upset at tradespeople who come into your house, make a mess and don't clean up after themselves, leaving it to the homeowner to clean up those little bits of plastic insulation or the little bits of gyprock dust leftover. Wonder if Mona cleans up after herself.
And her blog is nice! She uses pictures and so on to punctuate her blog entries. And she's a Canadian. What more could you want?
Wednesday, January 03, 2007
Nucor offers $1.07B for Harris Steel
Yahoo! News
Steel products maker Nucor Corp. offered $1.07 billion Tuesday in cash for Canada's Harris Steel Group Inc., the latest in a string of acquisitions for the steelmaker and in the quickly consolidating industry.
Steel products maker Nucor Corp. offered $1.07 billion Tuesday in cash for Canada's Harris Steel Group Inc., the latest in a string of acquisitions for the steelmaker and in the quickly consolidating industry.
Monday, January 01, 2007
Ruling puts Aluminum Smelter in limbo
Aluminum smelting is a highly electricity intensive operation. Most smelters have energy agreements in place to buy large quantities of electricity at good rates. So to compete in this environment, you need the same thing. You also need to be close to the power generation source, so the power transport costs aren't too high. If you drag all that electricity a long distance, the power losses are too high.
globeandmail.com
A regulator's decision to reject a power sales agreement between aluminum giant Alcan Inc. and Crown-owned British Columbia Hydro and Power Authority has elated those who fought against the deal, but raises questions about whether Alcan will go ahead with a planned $2-billion smelter upgrade in Kitimat.
globeandmail.com
A regulator's decision to reject a power sales agreement between aluminum giant Alcan Inc. and Crown-owned British Columbia Hydro and Power Authority has elated those who fought against the deal, but raises questions about whether Alcan will go ahead with a planned $2-billion smelter upgrade in Kitimat.
