Monday, July 21, 2008
McCain revs up auto workers
Washington Times
Suddenly, it's important to the US elections to think about jobs and the auto sector. Of course, many smaller stampers make parts directly and indirectly for the auto industry.
Sen. John McCain on Friday told auto workers to have faith that alternative technology vehicles will re-energize their sagging industry and help reduce the nation's dependence on foreign oil.
'I believe that this new technology - it's more than an automobile - will create hundreds and thousands of jobs,' the Republicans' presumptive presidential nominee said at a town-hall meeting with about 500 General Motors Corp. employees. 'This breakthrough has every chance of success.'
Mr. McCain toured a facility where the struggling automaker is designing a new battery-powered hybrid vehicle, and spoke to employees while flanked by several models of GM's emerging fuel-efficient cars and trucks.
Suddenly, it's important to the US elections to think about jobs and the auto sector. Of course, many smaller stampers make parts directly and indirectly for the auto industry.
Sen. John McCain on Friday told auto workers to have faith that alternative technology vehicles will re-energize their sagging industry and help reduce the nation's dependence on foreign oil.
'I believe that this new technology - it's more than an automobile - will create hundreds and thousands of jobs,' the Republicans' presumptive presidential nominee said at a town-hall meeting with about 500 General Motors Corp. employees. 'This breakthrough has every chance of success.'
Mr. McCain toured a facility where the struggling automaker is designing a new battery-powered hybrid vehicle, and spoke to employees while flanked by several models of GM's emerging fuel-efficient cars and trucks.
Labels: auto, manufacturing
Saturday, July 12, 2008
Steel Price Is Latest Setback for European Pipeline
This isn't directly related to stamping, but here is yet another project hit by the high price of steel.
Nabucco, the European Union’s natural gas pipeline project, intended to reduce the bloc’s dependence on Russian natural gas, has been dealt another setback — and this one could hit European consumers in the wallet.
Nabucco, the European Union’s natural gas pipeline project, intended to reduce the bloc’s dependence on Russian natural gas, has been dealt another setback — and this one could hit European consumers in the wallet.
Labels: steel
Rising Iron Ore Prices for China will effect Steel Prices
One of the issues bubbling while I wasn't blogging was the iron ore price increase that Chinese steelmakers had to accept recently. There are many articles about it, many opinions, all contradictory (of course).
Let's start here:
China’s steel mills shrug off iron ore rise. An amazing feat, if true. I don't know too many industries that can shrug off an 85% increase in a major input cost.
Big steelmakers in China on Tuesday shrugged off the impact of Monday’s record rise in iron ore prices, but the higher prices could increase cost pressures on smaller mills and hasten consolidation in the industry.
The average 85 per cent price increase agreed with Rio Tinto, the Anglo-Australian miner, was within the range of expectations, analysts said. Chinese mills had been expecting a price rise of at least 65 per cent[...]
“They [large and medium-sized steelmakers] can still maintain a long-term pricing system with the Australian miners,” and avoid higher-priced spot market purchases, Ms Wang said.
But analysts said thousands of smaller Chinese mills could be affected if the pricing agreement leads to higher spot prices, hastening consolidation in the steel industry. Smaller mills buy iron ore on the spot market and are unable to lock in prices by annual contract.
If this leads to consolidation of the chinese steel industry, this should lead to higher prices for chinese goods made of steel. The article says a 3% rise in output prices should cover it.
The consolidation effect was predicted already as far back as February, in the China Daily. Iron ore price rise could force China steel rationalization
China imports almost half of the world's seaborne iron ore, making it the largest iron ore consumer in the world, but it has become a price-taker for this basic input for steel -- perhaps because it waited too long to negotiate with major suppliers.
I also blogged on it at the time.
At the end of June, chinastakes.com wrote Iron Ore Price Hike to Swallow Chinese Steel Producers’ Profit
Apart from the iron ore price hike, the coking coal price rise will also lift the production cost of domestic steel producers. [...] With steel companies facing increasingly high production cost, profits are expected to slide in the near future.
Apart from the iron ore price hike, the price of coal and coking coal, as well as transportation costs are also increasing. In December of 2007, the average production cost of steel and pig iron in large and medium-sized steel companies increased by 31.05% over the same period in 2006.
The production cost increase of steel companies, a large part of it a result of the rise in iron ore and coking coal prices, will have a profound influence on the shipbuilding industry, the construction machinery industry, and the household appliances industry.
None of those are directly customers for small and medium sized stamping outfits, but each of those industries utilize loads of smaller stamped metal parts. Where the major manufacturing goes, so goes the little guys.
At the end of June, Mineweb.com said that Chinese dependence on iron ore imports has been growing, and was likely to rise in future.
while China was the world's biggest producer of iron ore at 520mt in 2006, representing almost a third of global production, much of this material is very low grade.
China will become more dependent on imported iron ore in future, despite the fact that its own production of iron ore has been increasing rapidly since the start of the century. Monthly imports have been growing at a much faster pace and are now almost double its own production.
Today, several sources, including Steel on the Net announced that Sinosteel succeeded in its bid to gain control of Australian iron ore miner Midwest. Stock exchange documents show it now has a majority stake in the target company. http://en.ce.cn/Business/Enterprise/200807/12/t20080712_16135812.shtml
See also: Forbes Sinosteel buys controlling stake in Aussie miner
Let's start here:
China’s steel mills shrug off iron ore rise. An amazing feat, if true. I don't know too many industries that can shrug off an 85% increase in a major input cost.
Big steelmakers in China on Tuesday shrugged off the impact of Monday’s record rise in iron ore prices, but the higher prices could increase cost pressures on smaller mills and hasten consolidation in the industry.
The average 85 per cent price increase agreed with Rio Tinto, the Anglo-Australian miner, was within the range of expectations, analysts said. Chinese mills had been expecting a price rise of at least 65 per cent[...]
“They [large and medium-sized steelmakers] can still maintain a long-term pricing system with the Australian miners,” and avoid higher-priced spot market purchases, Ms Wang said.
But analysts said thousands of smaller Chinese mills could be affected if the pricing agreement leads to higher spot prices, hastening consolidation in the steel industry. Smaller mills buy iron ore on the spot market and are unable to lock in prices by annual contract.
If this leads to consolidation of the chinese steel industry, this should lead to higher prices for chinese goods made of steel. The article says a 3% rise in output prices should cover it.
The consolidation effect was predicted already as far back as February, in the China Daily. Iron ore price rise could force China steel rationalization
China imports almost half of the world's seaborne iron ore, making it the largest iron ore consumer in the world, but it has become a price-taker for this basic input for steel -- perhaps because it waited too long to negotiate with major suppliers.
I also blogged on it at the time.
At the end of June, chinastakes.com wrote Iron Ore Price Hike to Swallow Chinese Steel Producers’ Profit
Apart from the iron ore price hike, the coking coal price rise will also lift the production cost of domestic steel producers. [...] With steel companies facing increasingly high production cost, profits are expected to slide in the near future.
Apart from the iron ore price hike, the price of coal and coking coal, as well as transportation costs are also increasing. In December of 2007, the average production cost of steel and pig iron in large and medium-sized steel companies increased by 31.05% over the same period in 2006.
The production cost increase of steel companies, a large part of it a result of the rise in iron ore and coking coal prices, will have a profound influence on the shipbuilding industry, the construction machinery industry, and the household appliances industry.
None of those are directly customers for small and medium sized stamping outfits, but each of those industries utilize loads of smaller stamped metal parts. Where the major manufacturing goes, so goes the little guys.
At the end of June, Mineweb.com said that Chinese dependence on iron ore imports has been growing, and was likely to rise in future.
while China was the world's biggest producer of iron ore at 520mt in 2006, representing almost a third of global production, much of this material is very low grade.
China will become more dependent on imported iron ore in future, despite the fact that its own production of iron ore has been increasing rapidly since the start of the century. Monthly imports have been growing at a much faster pace and are now almost double its own production.
Today, several sources, including Steel on the Net announced that Sinosteel succeeded in its bid to gain control of Australian iron ore miner Midwest. Stock exchange documents show it now has a majority stake in the target company. http://en.ce.cn/Business/Enterprise/200807/12/t20080712_16135812.shtml
See also: Forbes Sinosteel buys controlling stake in Aussie miner
Labels: china, iron_ore, steel
Are jobs coming back from China?
Old Jobs Not Coming Back, McCain Warns Ohio Autoworkers
McCain [...] reiterated that message on Friday, saying that the government should provide better worker retraining programs and incentives for companies like GM to create new jobs making environmentally sensitive products.
"The same old jobs aren't going to be there," he said. "The new jobs are here at Lordstown."[where GM makes the fuel efficient Chevrolet Cobalt]
General Motors has announced that it plans to sell a totally electric vehicle in 2010. McCain this week proposed a $300 million award to anyone inventing a radically better electric car battery.
An interesting (if a little irritating) youtube snippet. Like all things youtube, it's too short to garner context. Maybe he didn't mean it this way, I dunno. But it sure sounds weird.
Transcription--
JOHN MCCAIN: What we have to do is embrace this new technology, accept the fact and enjoy the fact that there's new jobs and the old jobs aren't coming back.
Also on this theme, BusinessWeek had an interesting cover story last month.
Can the U.S. Bring Jobs Back from China?
American factories and supplier networks in many industries have withered in the era of globalization, so it will take lots of time and capital before the U.S. can become a big player again. In electronics, for instance, there has been a mass migration of component makers to China in the past decade. Ditto for suppliers to Midwest heavy-equipment makers and North Carolina's furniture industry.
[...]
The global industrial landscape certainly appears to be in the early stages of a realignment. The euro's breathtaking rise against the dollar has spurred European makers of cars, steel, aircraft, and more to shift production to the U.S. Now the soaring cost of fuel is making it pricier to send goods across the Pacific.
According to ABC news, at least some jobs are coming back.
As the cost of shipping continues to soar along with fuel prices, homegrown manufacturing jobs are making a comeback after decades of decline.
Furniture designer Carol Gregg used to have her signature Chinese chests assembled in China, but such a luxury no longer seems viable, considering that some of her pieces now cost five times more to ship.
So now Gregg is having the chests made in North Carolina, simply because its cheaper.
"It's not just about labor costs anymore," says Rubin. "Distance costs money, and when you have to shift iron ore from Brazil to China and then ship it back to Pittsburgh, Pittsburgh is looking pretty good at 40 bucks an hour."
McCain [...] reiterated that message on Friday, saying that the government should provide better worker retraining programs and incentives for companies like GM to create new jobs making environmentally sensitive products.
"The same old jobs aren't going to be there," he said. "The new jobs are here at Lordstown."[where GM makes the fuel efficient Chevrolet Cobalt]
General Motors has announced that it plans to sell a totally electric vehicle in 2010. McCain this week proposed a $300 million award to anyone inventing a radically better electric car battery.
An interesting (if a little irritating) youtube snippet. Like all things youtube, it's too short to garner context. Maybe he didn't mean it this way, I dunno. But it sure sounds weird.
Transcription--
JOHN MCCAIN: What we have to do is embrace this new technology, accept the fact and enjoy the fact that there's new jobs and the old jobs aren't coming back.
Also on this theme, BusinessWeek had an interesting cover story last month.
Can the U.S. Bring Jobs Back from China?
American factories and supplier networks in many industries have withered in the era of globalization, so it will take lots of time and capital before the U.S. can become a big player again. In electronics, for instance, there has been a mass migration of component makers to China in the past decade. Ditto for suppliers to Midwest heavy-equipment makers and North Carolina's furniture industry.
[...]
The global industrial landscape certainly appears to be in the early stages of a realignment. The euro's breathtaking rise against the dollar has spurred European makers of cars, steel, aircraft, and more to shift production to the U.S. Now the soaring cost of fuel is making it pricier to send goods across the Pacific.
According to ABC news, at least some jobs are coming back.
As the cost of shipping continues to soar along with fuel prices, homegrown manufacturing jobs are making a comeback after decades of decline.
Furniture designer Carol Gregg used to have her signature Chinese chests assembled in China, but such a luxury no longer seems viable, considering that some of her pieces now cost five times more to ship.
So now Gregg is having the chests made in North Carolina, simply because its cheaper.
"It's not just about labor costs anymore," says Rubin. "Distance costs money, and when you have to shift iron ore from Brazil to China and then ship it back to Pittsburgh, Pittsburgh is looking pretty good at 40 bucks an hour."
Labels: china, jobs, manufacturing
Michigan wary of McCain trade message
FT.com
Jim Zawacki, chairman of a metal-stamping manufacturer in Grand Rapids, Michigan, was apologetic but firm as he doled out some “straight talk” to John McCain, the Republican presidential candidate, at a town hall meeting this week.
Though Mr Zawacki has donated $1,000 [...] to the Arizona senator’s campaign, he said he disagreed with Mr McCain’s commitment to free trade and challenged his suggestion that Michigan’s staggering 8.5 per cent unemployment rate could largely be fixed by retraining displaced workers at community colleges.
“Where are you going to find teachers to teach them? What we need to do is control some of these trade issues. What we are asking for is fair trade,” he said.
Mr McCain has admitted he has “a lot of work to do” to win over the likes of Mr Zawacki. This week, he travelled from Ohio to Wisconsin to persuade voters to reject “isolationism” in favour of an economic agenda centred on tax breaks for small businesses, free trade and cuts in government spending.
Many Republicans are betting their candidate’s message will resonate in the home state of the big three US car manufacturers.
Jim isn't against Free Trade, but he wants it to be fair trade. Like most small stampers, he'd be OK with free trade on a level playing field.
Jim Zawacki, chairman of a metal-stamping manufacturer in Grand Rapids, Michigan, was apologetic but firm as he doled out some “straight talk” to John McCain, the Republican presidential candidate, at a town hall meeting this week.
Though Mr Zawacki has donated $1,000 [...] to the Arizona senator’s campaign, he said he disagreed with Mr McCain’s commitment to free trade and challenged his suggestion that Michigan’s staggering 8.5 per cent unemployment rate could largely be fixed by retraining displaced workers at community colleges.
“Where are you going to find teachers to teach them? What we need to do is control some of these trade issues. What we are asking for is fair trade,” he said.
Mr McCain has admitted he has “a lot of work to do” to win over the likes of Mr Zawacki. This week, he travelled from Ohio to Wisconsin to persuade voters to reject “isolationism” in favour of an economic agenda centred on tax breaks for small businesses, free trade and cuts in government spending.
Many Republicans are betting their candidate’s message will resonate in the home state of the big three US car manufacturers.
Jim isn't against Free Trade, but he wants it to be fair trade. Like most small stampers, he'd be OK with free trade on a level playing field.
Labels: fair_trade, free_trade, stamping
Wednesday, July 09, 2008
Miner dies at St. Lawrence Zinc
Since I've been giving the chinese so much grief over their horrible mining safety record, it's only fair that I report on western mine accidents too.
Newswatch50.com
A mining accident Saturday claimed the life of a St. Lawrence County man.
Clewis was standing on a platform, drilling into a wall, when the ceiling collapsed, pinning him under a slab of rock. Aldridge, who had jumped clear, called for help.
Newswatch50.com
A mining accident Saturday claimed the life of a St. Lawrence County man.
Clewis was standing on a platform, drilling into a wall, when the ceiling collapsed, pinning him under a slab of rock. Aldridge, who had jumped clear, called for help.
Defying odds, U.S. steel industry making comeback
It's been a while since I've blogged anything. It's a combination of several factors. Blogger's software has been giving me grief of late, I've been very busy in my home life, I was on vacation, etc. So there are going to be a bunch of catchup articles, things that are actually a month or two old, but only now am I getting to the backlog of articles and publishing them.
So how fitting the first one is about the rebirth of north american steel. Of course, here at Stampingoutaliving, some of the things mentioned in the article have the opposite value for us. For instance, lack of competition and lack of lower cost imports is great if you're a steel company, not so much if you're in a steel-consuming company.
The San Diego Union-Tribune
The U.S. steel industry is enjoying a new era of prosperity less than a decade after crippling production costs and lower-priced imports helped trigger a huge wave of bankruptcies that some thought would leave it permanently tarnished.
Buoyed by sharply reduced employee costs, soaring global demand, dramatic consolidation that has tamped down cutthroat competition and a weakened dollar that has made imports less attractive, steel prices have tripled in the past five years. For the first time in decades, companies operating in the United States have added capacity and workers.
German steel maker ThyssenKrupp is building a $4 billion plant [...]. Nucor has applied for permits to build a $2 billion plant [...]. The Russian giant Severstal recently purchased the Sparrows Point steel plant outside Baltimore [...]
“There hasn't been this much building in 25 to 30 years,” said Michael D. Locker, president of Locker Associates, a steel consulting firm.
So how fitting the first one is about the rebirth of north american steel. Of course, here at Stampingoutaliving, some of the things mentioned in the article have the opposite value for us. For instance, lack of competition and lack of lower cost imports is great if you're a steel company, not so much if you're in a steel-consuming company.
The San Diego Union-Tribune
The U.S. steel industry is enjoying a new era of prosperity less than a decade after crippling production costs and lower-priced imports helped trigger a huge wave of bankruptcies that some thought would leave it permanently tarnished.
Buoyed by sharply reduced employee costs, soaring global demand, dramatic consolidation that has tamped down cutthroat competition and a weakened dollar that has made imports less attractive, steel prices have tripled in the past five years. For the first time in decades, companies operating in the United States have added capacity and workers.
German steel maker ThyssenKrupp is building a $4 billion plant [...]. Nucor has applied for permits to build a $2 billion plant [...]. The Russian giant Severstal recently purchased the Sparrows Point steel plant outside Baltimore [...]
“There hasn't been this much building in 25 to 30 years,” said Michael D. Locker, president of Locker Associates, a steel consulting firm.
Labels: steel
