Wednesday, August 27, 2008
GLOBAL STEEL PRICES EXPECTED TO PEAK BEFORE THE YEAR END
Many metal stampers, especially smaller ones, are unable to pass steel price increases on to their customers, or only at certain, negotiated times. Therefore, highly volatile steel markets really hurt their bottom line. The fact that steel is still expected to rise for the rest of this year is bad news for the little guys. If in fact, there is a peak coming soon, that's good news in the middle term, and perhaps some people will be able to set prices there at the peak and ride the down side a bit to improve profitability. But such market timing is hard for stampers, since market speculation isn't really their forté
MEPS
Transaction figures are expected to continue climbing in September due to higher raw material costs. However, we predict that the latest increases will signal the peak of the current cycle in western countries as reduced consumption negatively affects demand on the mills. Low construction activity is expected to result in continued cautious buying by service centres. They also fear being left with overpriced material when values begin to fall.
The weakening economies in the EU and North America will, almost certainly, result in reduced demand in the near term from the manufacturing and building industries. Credit constraints are also expected to limit purchases, particularly from smaller customers. Consequently, selling figures are forecast to soften towards the end of the year.
MEPS
Transaction figures are expected to continue climbing in September due to higher raw material costs. However, we predict that the latest increases will signal the peak of the current cycle in western countries as reduced consumption negatively affects demand on the mills. Low construction activity is expected to result in continued cautious buying by service centres. They also fear being left with overpriced material when values begin to fall.
The weakening economies in the EU and North America will, almost certainly, result in reduced demand in the near term from the manufacturing and building industries. Credit constraints are also expected to limit purchases, particularly from smaller customers. Consequently, selling figures are forecast to soften towards the end of the year.
Labels: steel
Monday, August 25, 2008
Cost hikes cut into iron and steel company profits
This hardly seems like much of a surprise. It's hard to consider absorbing a 70% increase in iron ore cost and not having it hurt you.
chinadaily.com.cn
Costs for China's large and medium-size iron and steel manufacturers rose by more than 250 billion yuan ($36.5 billion), or 57.57 percent, in the first half, according to the China Iron and Steel Association (CISA).
The cost hike was due to the soaring prices of materials and fuel, said the CISA, noting the country's iron and steel companies were facing tremendous pressure this year.
The soaring costs resulted in profit falls, with the half-year rate of return on sales for large and medium-size iron and steel suppliers at 7.61 percent, 0.95 percentage points lower than the same period last year.
chinadaily.com.cn
Costs for China's large and medium-size iron and steel manufacturers rose by more than 250 billion yuan ($36.5 billion), or 57.57 percent, in the first half, according to the China Iron and Steel Association (CISA).
The cost hike was due to the soaring prices of materials and fuel, said the CISA, noting the country's iron and steel companies were facing tremendous pressure this year.
The soaring costs resulted in profit falls, with the half-year rate of return on sales for large and medium-size iron and steel suppliers at 7.61 percent, 0.95 percentage points lower than the same period last year.
U. S. Steel seeks cause of belching blast furnace
St. Catharines Standard
U. S. Steel Canada is apologetic about its blast furnace belching smoke and coke dust into the air over Hamilton four times in little more than a month.
Spokesman Trevor Harris says the multinational steelmaker that took over Stelco last fall is calling on in-house experts around the world to help local staff and the Ontario Environment Ministry determine what went wrong and how to stop it happening.
'One of the great benefits of being U. S. Steel Canada (instead of stand-alone Stelco) is that we now have access to expertise from literally around the world to try to rectify the problem.'
U. S. Steel Canada is apologetic about its blast furnace belching smoke and coke dust into the air over Hamilton four times in little more than a month.
Spokesman Trevor Harris says the multinational steelmaker that took over Stelco last fall is calling on in-house experts around the world to help local staff and the Ontario Environment Ministry determine what went wrong and how to stop it happening.
'One of the great benefits of being U. S. Steel Canada (instead of stand-alone Stelco) is that we now have access to expertise from literally around the world to try to rectify the problem.'
Sunday, August 24, 2008
Bikers escort WTC steel to new memorial
USATODAY.com
The roar of 1,000 motorcycles accompanied a steel beam from the World Trade Center on Saturday as it traveled to Pennsylvania, where it will be part of a memorial to those who died there in the Sept. 11 terrorist attacks.
Hundreds of current and retired New York City firefighters left Brooklyn's Floyd Bennett Field at about 7 a.m. to escort the girder on the 311-mile ride to Shanksville, Pennsylvania.
The members of the New York City Fire Riders joined a larger group that included bikers from as far away as Georgia. The beam rode on a flatbed truck.
The roar of 1,000 motorcycles accompanied a steel beam from the World Trade Center on Saturday as it traveled to Pennsylvania, where it will be part of a memorial to those who died there in the Sept. 11 terrorist attacks.
Hundreds of current and retired New York City firefighters left Brooklyn's Floyd Bennett Field at about 7 a.m. to escort the girder on the 311-mile ride to Shanksville, Pennsylvania.
The members of the New York City Fire Riders joined a larger group that included bikers from as far away as Georgia. The beam rode on a flatbed truck.
