Thursday, March 27, 2008
STEEL PRICES DRIVEN UP BY RISING INPUT COSTS AND LIMITED SUPPLY
MEPS INTERNATIONAL
Since it was announced that iron ore prices would rise by 65 percent, Chinese mills have sought to lift steel values quite substantially. Japanese producers have tabled advances of ¥20,000 per tonne for April deliveries and may even adjust prices further in the third trimester. Market values have already strengthened considerably in the wake of the announcements, amidst tight supply caused in part by buoyant demand from the auto makers.
Since it was announced that iron ore prices would rise by 65 percent, Chinese mills have sought to lift steel values quite substantially. Japanese producers have tabled advances of ¥20,000 per tonne for April deliveries and may even adjust prices further in the third trimester. Market values have already strengthened considerably in the wake of the announcements, amidst tight supply caused in part by buoyant demand from the auto makers.
Tuesday, March 04, 2008
Italians seize 30 tons of radioactive steel
This usage of the word "accident" raises more questions than it answers. How do you accidentally mix steel with cobalt-60?
USATODAY.com
Italian police said Monday they have seized 30 tons of Chinese-made steel that had been contaminated by a radioactive substance.
[...]
The steel had been accidentally mixed during production with cobalt-60
USATODAY.com
Italian police said Monday they have seized 30 tons of Chinese-made steel that had been contaminated by a radioactive substance.
[...]
The steel had been accidentally mixed during production with cobalt-60
Wednesday, February 27, 2008
Iron ore price rise could force China steel rationalization
China Daily
[...]higher costs might actually help rationalize the Chinese steel industry by pricing some smaller firms with obsolete technology out of business.
After Brazilian mining conglomerate Vale hammered out 2008 benchmark prices for iron ore fines with Japanese and Republic of Korea (ROK) steel makers last week, Baosteel Group, China's largest steel maker, agreed on the price for fiscal 2008, accepting the Brazilian miner's price hikes that ranged from 65 percent to 71 percent compared with 2007.
[...]
China's steel needs have soared, driven by rapid urbanization and many large infrastructure projects. China imports almost half of the world's seaborne iron ore, making it the largest iron ore consumer in the world.
[...]higher costs might actually help rationalize the Chinese steel industry by pricing some smaller firms with obsolete technology out of business.
After Brazilian mining conglomerate Vale hammered out 2008 benchmark prices for iron ore fines with Japanese and Republic of Korea (ROK) steel makers last week, Baosteel Group, China's largest steel maker, agreed on the price for fiscal 2008, accepting the Brazilian miner's price hikes that ranged from 65 percent to 71 percent compared with 2007.
[...]
China's steel needs have soared, driven by rapid urbanization and many large infrastructure projects. China imports almost half of the world's seaborne iron ore, making it the largest iron ore consumer in the world.
Saturday, January 26, 2008
China's Pain is Century Aluminum's Gain
The main part of the article is about aluminum, how a major aluminum smelter in China had to shut down, and what that's going to do to the aluminum market.
But the larger issue, for most stampers, is in this section. Power problems and unreliability in China are going to increase
Arif said that while the outages at Chalco’s plants are only temporary, there will start to be more power issues in China going forward. China has been subsidizing power for its users so demand for power has grown unabated, Arif said. As the costs to produce power, whether coal or other fuel, has increased, the Chinese government has spoken about increasing the power costs for institutional consumers like aluminum consumers. “That’s why you’ll start seeing a lot more of these types of power issues develop,” he said.
But the larger issue, for most stampers, is in this section. Power problems and unreliability in China are going to increase
Arif said that while the outages at Chalco’s plants are only temporary, there will start to be more power issues in China going forward. China has been subsidizing power for its users so demand for power has grown unabated, Arif said. As the costs to produce power, whether coal or other fuel, has increased, the Chinese government has spoken about increasing the power costs for institutional consumers like aluminum consumers. “That’s why you’ll start seeing a lot more of these types of power issues develop,” he said.
Friday, December 28, 2007
North American Breaker Co. Recalls Counterfeit Circuit Breakers Due to Fire Hazard
This isn't a stamping story exactly, but many stamped products are also counterfeited in China, so it seems related to me.
The notice comes from the U.S. Consumer Product Safety Commission web site.
Consumers should stop using recalled products immediately unless otherwise instructed.
Name of Product: Counterfeit Circuit Breakers labeled as “Square D”
Units: About 50,000
Distributor/Retailer: North American Breaker Co. Inc. (NABCO), of Burbank, Calif.
Hazard: The recalled circuit breakers labeled “Square D” have been determined by Square D to be counterfeit and can fail to trip when they are overloaded, posing a fire hazard to consumers.
The notice comes from the U.S. Consumer Product Safety Commission web site.
Consumers should stop using recalled products immediately unless otherwise instructed.
Name of Product: Counterfeit Circuit Breakers labeled as “Square D”
Units: About 50,000
Distributor/Retailer: North American Breaker Co. Inc. (NABCO), of Burbank, Calif.
Hazard: The recalled circuit breakers labeled “Square D” have been determined by Square D to be counterfeit and can fail to trip when they are overloaded, posing a fire hazard to consumers.
Labels: china, counterfeit
Saturday, December 22, 2007
China to impose or raise export tariffs on coal, steel products next year
People's Daily Online
China will impose or raise export duties on products including wood pulp, coke, alloy steel, steel billets, and some finished steel products in 2008, the Ministry of Finance (MOF) announced on Friday.
The nation will also impose temporary export tariffs on coal, crude oil, and metal ores next year, the MOF stated, without providing further details.
China will impose or raise export duties on products including wood pulp, coke, alloy steel, steel billets, and some finished steel products in 2008, the Ministry of Finance (MOF) announced on Friday.
The nation will also impose temporary export tariffs on coal, crude oil, and metal ores next year, the MOF stated, without providing further details.
China to Raise Tariffs on Steel, Coal Exports in January
Bloomberg.com: Asia
China, which produces a third of the world's steel, will raise export tariffs on some steel products from Jan. 1 to help rein in a record trade surplus and reduce energy consumption and pollution.
It didn't give details on new tax rates. The country will also impose export tariffs on coal, crude oil and metal ores next year, the Ministry of Finance said in a statement on its Web site late yesterday.
China, seeking to curb a record trade surplus, cut tax rebates and raised duties on steel shipments this year. The Asian nation's exports have pressured rivals, leading the European Union last month to threaten tariffs to shield its producers, including ArcelorMittal, the world's largest steelmaker.
China, which produces a third of the world's steel, will raise export tariffs on some steel products from Jan. 1 to help rein in a record trade surplus and reduce energy consumption and pollution.
It didn't give details on new tax rates. The country will also impose export tariffs on coal, crude oil and metal ores next year, the Ministry of Finance said in a statement on its Web site late yesterday.
China, seeking to curb a record trade surplus, cut tax rebates and raised duties on steel shipments this year. The Asian nation's exports have pressured rivals, leading the European Union last month to threaten tariffs to shield its producers, including ArcelorMittal, the world's largest steelmaker.
Thursday, November 01, 2007
Copper prices fall, global stockpiles increase
Bloomberg.com
Copper prices fell in Shanghai as global stockpiles kept rising, renewing concern that demand is slowing for the metal used in wires and pipes.
Copper prices fell in Shanghai as global stockpiles kept rising, renewing concern that demand is slowing for the metal used in wires and pipes.
Saturday, October 20, 2007
U.S. Border Fence Made with Imported Steel
This is more symbolic in some ways than substantive, but not entirely. I know someone who knows someone, etc, who is a fencemaker. He bought fence from China (you buy it in rolls, like fabric) twice, and both times, the quality was poor and he had to replace it after installation. So he won't buy there again. I don't know what the quality issues were, but if it makes a lousy fence, even if it's a good price, what's the point?
NPR
The comedian Carlos Mencia jokes about that giant fence to keep out immigrants. He says we might need immigrant labor to build it. Now lawmakers are upset that the fence includes immigrant steel. Some of the fence on the Mexican border is being built with steel from China.
NPR
The comedian Carlos Mencia jokes about that giant fence to keep out immigrants. He says we might need immigrant labor to build it. Now lawmakers are upset that the fence includes immigrant steel. Some of the fence on the Mexican border is being built with steel from China.
Saturday, August 18, 2007
Flooding In China Leaves 181 Miners Trapped
From time to time I comment on the high human cost of Chinese steel. Here we have it again. Chinese mines have the worst safety record in the world.
CityNews
Heavy flooding poured into two coal mines in eastern China on Friday, leaving 181 miners trapped and feared dead. Two high-speed pumps were being rushed in to drain the flooded shafts, but officials say there's no word on when rescuers might enter the mines.
China's coal mines are the world's deadliest, with thousands of fatalities a year.
CityNews
Heavy flooding poured into two coal mines in eastern China on Friday, leaving 181 miners trapped and feared dead. Two high-speed pumps were being rushed in to drain the flooded shafts, but officials say there's no word on when rescuers might enter the mines.
China's coal mines are the world's deadliest, with thousands of fatalities a year.
Wednesday, August 01, 2007
Area lawmakers testify to keep tariffs on Chinese steel; Nucor called a victim
I don't understand why anyone thinks it makes sense to impose tarifs on the raw materials coming from China and not the finished goods made from the same raw materials coming from China. All this does is cut the entire food chain out of North America and shift it all to China. Why don't the steelmakers see it as shortsighted to cut off the legs of their customers? Why don't the lawmakers see it either?
Nucor Corp. and other U.S. steelmakers are the victims of China's illegal subsidization of exported steel, lawmakers testified Tuesday.
In the first day of a two-day hearing, dozens of lawmakers argued that the U.S. International Trade Commission should renew five-year punitive tariffs on hot-rolled flat carbon steel imported from China and 10 other countries. China was the main target.
Nucor Corp. and other U.S. steelmakers are the victims of China's illegal subsidization of exported steel, lawmakers testified Tuesday.
In the first day of a two-day hearing, dozens of lawmakers argued that the U.S. International Trade Commission should renew five-year punitive tariffs on hot-rolled flat carbon steel imported from China and 10 other countries. China was the main target.
Labels: china, currency, manipulation, manufacturing, steel
Thursday, June 28, 2007
CHINESE TAX LEVY FAILS TO LIFT GLOBAL STEEL PRICES FOR STRIP MILL PRODUCTS
MEPS
US strip mill transaction prices softened further over the last month as scrap costs continued to slide. The downturn is most apparent in the hot rolled category. Real consumption has remained lacklustre, causing service centre inventory depletion to take much longer to complete than was initially envisaged. Delivery lead times quoted by domestic mills have reduced to four weeks or less in some instances.
US strip mill transaction prices softened further over the last month as scrap costs continued to slide. The downturn is most apparent in the hot rolled category. Real consumption has remained lacklustre, causing service centre inventory depletion to take much longer to complete than was initially envisaged. Delivery lead times quoted by domestic mills have reduced to four weeks or less in some instances.
Saturday, May 26, 2007
Copper May Fall Next Week on Speculation China Demand Will Slow
bloomberg.com
Copper may fall next week on speculation that demand will slow in China, the largest buyer of the metal, following a surge in imports in the first quarter.
Yahoo Asia:
copper rebounded on Friday, but analysts think the overall trend of rising copper stocks and lower demand over coming months could pressure prices down further.
Copper futures shed 2.3%
China Daily
Copper futures in Shanghai fell by [...] nearly 4 percent, by midday on Friday before closing [...] down 2.3 percent from the previous close, because of growing investors' concern about rising stocks of the industrial metal in China.
Copper may fall next week on speculation that demand will slow in China, the largest buyer of the metal, following a surge in imports in the first quarter.
Yahoo Asia:
copper rebounded on Friday, but analysts think the overall trend of rising copper stocks and lower demand over coming months could pressure prices down further.
Copper futures shed 2.3%
China Daily
Copper futures in Shanghai fell by [...] nearly 4 percent, by midday on Friday before closing [...] down 2.3 percent from the previous close, because of growing investors' concern about rising stocks of the industrial metal in China.
Friday, May 11, 2007
Copper Heads for Largest Weekly Drop in 3 Months
Bloomberg.com
Copper headed for its largest weekly decline in three months in London on speculation that demand growth will slow in China, the world's biggest user. Nickel and zinc rose.
China's copper imports probably slowed in April, said analysts including Kevin Norrish at Barclays Capital.
``The Chinese market is suffering temporary indigestion after the amount of material delivered into Shanghai in the first quarter,'' Norrish said today by phone from London. ``Some people expected them to buy this week when they returned to the market after the holiday, but that hasn't happened.''
Copper headed for its largest weekly decline in three months in London on speculation that demand growth will slow in China, the world's biggest user. Nickel and zinc rose.
China's copper imports probably slowed in April, said analysts including Kevin Norrish at Barclays Capital.
``The Chinese market is suffering temporary indigestion after the amount of material delivered into Shanghai in the first quarter,'' Norrish said today by phone from London. ``Some people expected them to buy this week when they returned to the market after the holiday, but that hasn't happened.''
Saturday, April 28, 2007
Gas leak kills four at China steel plant
Once again, chinese steel workers pay a heavy price.
China Economic Net (ce.cn)
The accident occurred at around 0:00 a.m. at Haicheng Iron and Steel Co. Ltd., a private company that produces 500,000 tons of raw iron a year, said an official with the safety inspection bureau in Anshan.
Five workers were on duty and were taking a nap in their office. "Four of them had died when rescuers arrived," he said on condition of anonymity. "The fifth one was out of danger after timely treatment."
The leak occurred on a gas pipe connected to the company's primary blast furnace
China Economic Net (ce.cn)
The accident occurred at around 0:00 a.m. at Haicheng Iron and Steel Co. Ltd., a private company that produces 500,000 tons of raw iron a year, said an official with the safety inspection bureau in Anshan.
Five workers were on duty and were taking a nap in their office. "Four of them had died when rescuers arrived," he said on condition of anonymity. "The fifth one was out of danger after timely treatment."
The leak occurred on a gas pipe connected to the company's primary blast furnace
Sunday, April 22, 2007
Look Who's Talking: Dan Cunningham - It's time to embrace the potential in China
From the "if you can't beat'em, join'em department" ...
It's time to embrace the potential in China
Cincinnati Enquirer
Dan Cunningham, president and chief executive of Long-Stanton Manufacturing Co. in West Chester Township, knows that China is a threat and an opportunity for his 144-year-old metal-stamping company.
But rather than run from what he calls the China 'tsunami,' Cunningham has embraced it.
Over the past five years, he has made nearly two dozen trips to China, established a couple of joint ventures there and started a small metal-stamping operation in Changzhou province run by his son, Marvin. The effort has paid off, more than doubling Long-Stanton's business and increasing employment at the West Chester plant to 75 from around 60.
It's time to embrace the potential in China
Cincinnati Enquirer
Dan Cunningham, president and chief executive of Long-Stanton Manufacturing Co. in West Chester Township, knows that China is a threat and an opportunity for his 144-year-old metal-stamping company.
But rather than run from what he calls the China 'tsunami,' Cunningham has embraced it.
Over the past five years, he has made nearly two dozen trips to China, established a couple of joint ventures there and started a small metal-stamping operation in Changzhou province run by his son, Marvin. The effort has paid off, more than doubling Long-Stanton's business and increasing employment at the West Chester plant to 75 from around 60.
Labels: china, manufacturing
Thursday, April 19, 2007
Workers recount tragedy at China steel factory
I've commented more than once on China's workplace safety record, especially in the steel and coal industries, because they relate most specifically to metal stamping.
In this accident, a crane failure occurred while the laddle was full of molten steel.
In an irony I'm sure no one appreciates, they were having a safety meeting in that meeting room.
Yahoo! News
Survivors of a horrific industrial accident in northeast China Thursday recounted the gruesome scene at their factory when 26 tonnes of molten steel poured into a meeting room, killing 32 workers.
[...]
The accident happened at Qinghe Special Steel Corp, a relatively modern facility in China's former industrial heartland in Liaoning province.
In this accident, a crane failure occurred while the laddle was full of molten steel.
In an irony I'm sure no one appreciates, they were having a safety meeting in that meeting room.
Yahoo! News
Survivors of a horrific industrial accident in northeast China Thursday recounted the gruesome scene at their factory when 26 tonnes of molten steel poured into a meeting room, killing 32 workers.
[...]
The accident happened at Qinghe Special Steel Corp, a relatively modern facility in China's former industrial heartland in Liaoning province.
Tuesday, March 13, 2007
China Currency Coalition
Every once in a while, I like to give a plug to the China Currency Coalition. They sure seem to be fighting an uphill battle (although I'm baffled as to why their point of view isn't making itself in the eyes of the public and legislators).
Their basic premise is that Chinese currency manipulation is unfair. Well, of course it is. It's also illegal under various statutes and international obligations. I'm no lawyer, so I'll leave that one to the lawyers.
I can tell you this. Currency manipulation was rampant during the second world war war, and it was used as a weapon of war. That's pretty serious. So why don't we take these things seriously now?
Their basic premise is that Chinese currency manipulation is unfair. Well, of course it is. It's also illegal under various statutes and international obligations. I'm no lawyer, so I'll leave that one to the lawyers.
I can tell you this. Currency manipulation was rampant during the second world war war, and it was used as a weapon of war. That's pretty serious. So why don't we take these things seriously now?
Labels: china, currency, manipulation
Sunday, March 11, 2007
'Low-Cost' Economies Not So Cheap
I just found this interesting article this week, although it's almost 6 months old. I found it on another bloggers web site, which just shows, I suppose, that I should browse the other blogs more.
The low-cost allure of emerging economies such China, India and eastern Europe for Western companies is overdone once the meager productivity of their workers is factored in, the Conference Board said Oct. 3. Bart van Ark, director of the Conference Board's international economic research program, said the report was a 'critical lesson' to Western companies seeking to take advantage of lower costs in emerging economies.
Add to that the fact that certain materials, like spring steel and stainless steel, aren't available in sufficient quantity and quality, and it's unclear why people think offshoring is a good idea.
The low-cost allure of emerging economies such China, India and eastern Europe for Western companies is overdone once the meager productivity of their workers is factored in, the Conference Board said Oct. 3. Bart van Ark, director of the Conference Board's international economic research program, said the report was a 'critical lesson' to Western companies seeking to take advantage of lower costs in emerging economies.
Add to that the fact that certain materials, like spring steel and stainless steel, aren't available in sufficient quantity and quality, and it's unclear why people think offshoring is a good idea.
Labels: china
Tuesday, March 06, 2007
China to Close Dirty Steel Mills
I've commented, from time to time, about the environmental and workplace safety issues in the Chinese steel industry (and the coal mining industry that produces coking coal for steel).
It seems like someone may be doing something about it.
Yahoo! Finance
China will close its dirtiest steel mills as it steps up efforts to rein in surging energy use and clean up environmental damage caused by its economic boom, Premier Wen Jiabao said Monday.
However, the word and the deed are sometimes separated.
Wen acknowledged Sunday that China failed to meet its conservation targets last year.
On Monday, he promised to "resolutely close down" its oldest, dirtiest steel mills, power plants and facilities in the cement, aluminum and coke industries.
It seems like someone may be doing something about it.
Yahoo! Finance
China will close its dirtiest steel mills as it steps up efforts to rein in surging energy use and clean up environmental damage caused by its economic boom, Premier Wen Jiabao said Monday.
However, the word and the deed are sometimes separated.
Wen acknowledged Sunday that China failed to meet its conservation targets last year.
On Monday, he promised to "resolutely close down" its oldest, dirtiest steel mills, power plants and facilities in the cement, aluminum and coke industries.
