Wednesday, May 07, 2008
RECORD HIKE FOR US STEEL PRICES
MEPS
US transaction prices are going through the roof with gains over the last four weeks as high as $US145 per tonne for some products and more substantial hikes planned by the mills for June deliveries. Domestic values have now caught up with average world prices. Although real demand is no more than satisfactory as the economy weakens, supply is being allocated by the local mills. The availability of imports is virtually nil, due to the weak US dollar, high ocean freight rates and soaring prices in other regions. OEM's complain that expected delivery times are not being met. Inventories at the service centres are described as 'low to medium'. They are unlikely to be rebuilt in the short term as buyers are unwilling to speculate when steel is so expensive.
In Canada, domestic order intake is strong. Producers need to offset the large increases in raw materials, such as iron ore and scrap. Consequently transaction values continue to advance, despite alarm amongst customers. Current imports and permits for the future remain low.
US transaction prices are going through the roof with gains over the last four weeks as high as $US145 per tonne for some products and more substantial hikes planned by the mills for June deliveries. Domestic values have now caught up with average world prices. Although real demand is no more than satisfactory as the economy weakens, supply is being allocated by the local mills. The availability of imports is virtually nil, due to the weak US dollar, high ocean freight rates and soaring prices in other regions. OEM's complain that expected delivery times are not being met. Inventories at the service centres are described as 'low to medium'. They are unlikely to be rebuilt in the short term as buyers are unwilling to speculate when steel is so expensive.
In Canada, domestic order intake is strong. Producers need to offset the large increases in raw materials, such as iron ore and scrap. Consequently transaction values continue to advance, despite alarm amongst customers. Current imports and permits for the future remain low.
Labels: steel
ASIAN AVERAGE CARBON STEEL PRICES - LATEST FORECASTS FROM MEPS
MEPS
All MEPS flat products forecasts have been revised upwards as a result of the staggering 200 percent price rise in coking coal contracts. Scrap figures also rocketed during April. Growing imports for most products will not be sufficient to relieve the tight supply situation in the market in the short term. Consequently, transaction values are expected to climb until the middle of the year.
All MEPS flat products forecasts have been revised upwards as a result of the staggering 200 percent price rise in coking coal contracts. Scrap figures also rocketed during April. Growing imports for most products will not be sufficient to relieve the tight supply situation in the market in the short term. Consequently, transaction values are expected to climb until the middle of the year.
Labels: steel
Sunday, April 20, 2008
Chinese steel an issue in Pennsylvania primary
Steel is becoming an issue in the US presidential race.
STLtoday
In the hollowed-out towns where steel plants once thrived, business and labor are uniting to demand that presidential contenders stand up to a growing threat to American steel — China.
Explosive growth in Chinese steel imports fueled by China's subsidies and questionable trade practices are triggering anti-China sentiments and fears for the future in American communities sustained for decades by the manufacture of steel.
Now, China's threat to American steel towns from Pittsburgh to Granite City is center stage in the debate over trade and globalization.
STLtoday
In the hollowed-out towns where steel plants once thrived, business and labor are uniting to demand that presidential contenders stand up to a growing threat to American steel — China.
Explosive growth in Chinese steel imports fueled by China's subsidies and questionable trade practices are triggering anti-China sentiments and fears for the future in American communities sustained for decades by the manufacture of steel.
Now, China's threat to American steel towns from Pittsburgh to Granite City is center stage in the debate over trade and globalization.
Labels: steel
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
Sunday, March 02, 2008
Ship built with WTC steel christened
I've talked about this story before (click the WTC link below), but now it's been properly christened and launched.
Yahoo! News
The USS New York, an amphibious assault ship built with scrap steel from the ruins of the World Trade Center, was christened Saturday as a source of strength and inspiration for the nation.
Yahoo! News
The USS New York, an amphibious assault ship built with scrap steel from the ruins of the World Trade Center, was christened Saturday as a source of strength and inspiration for the nation.
Saturday, March 01, 2008
Steel pipe factory breaks ground
ContraCostaTimes.com
PITTSBURG -- Business executives and city leaders officially launched a new steel pipe factory Friday that is being designed to tap into the fast-rising demand for energy in the United States.
The $137 million United Spiral Pipe plant in Pittsburg will produce big steel pipes that are ideally suited for transporting oil and natural gas. The project is a joint venture of U.S. Steel Corp. and two South Korean companies, POSCO and SeAH Steel Corp.
PITTSBURG -- Business executives and city leaders officially launched a new steel pipe factory Friday that is being designed to tap into the fast-rising demand for energy in the United States.
The $137 million United Spiral Pipe plant in Pittsburg will produce big steel pipes that are ideally suited for transporting oil and natural gas. The project is a joint venture of U.S. Steel Corp. and two South Korean companies, POSCO and SeAH Steel Corp.
Labels: steel
Steel Prices May Rise Despite Declining Demand
Tampa Bay Online (tbo.com)
Businesses that use steel for construction and other projects will continue to face high prices during the first half of 2008, despite a continued decline in housing and automobile demand that theoretically should begin to bring prices down.
That was the general consensus among steel industry and government trade officials who spoke Friday at the 19th annual Tampa Steel Conference, which drew more than 400 participants to the Tampa Marriott Waterside.
The price for a ton of cold-rolled steel coil, which now is about $752 in North America, could rise to $900 by April or May, said Tom Stundza, executive editor of the trade journal Purchasing Magazine. However, conference participants expected the high prices would begin to abate by midsummer or soon thereafter.
Businesses that use steel for construction and other projects will continue to face high prices during the first half of 2008, despite a continued decline in housing and automobile demand that theoretically should begin to bring prices down.
That was the general consensus among steel industry and government trade officials who spoke Friday at the 19th annual Tampa Steel Conference, which drew more than 400 participants to the Tampa Marriott Waterside.
The price for a ton of cold-rolled steel coil, which now is about $752 in North America, could rise to $900 by April or May, said Tom Stundza, executive editor of the trade journal Purchasing Magazine. However, conference participants expected the high prices would begin to abate by midsummer or soon thereafter.
Labels: steel
Friday, February 29, 2008
World Trade Center steel lives on in naval warship
It's nice to see at least part of the scrap steel being used for something appropriate. It seemed odd somehow that the scrap was mostly taken away to be reprocessed in Asia.
The Record (NorthJersey.com)
The brains behind the use of salvaged World Trade Center steel in a new Navy warship is a Rutherford volunteer firefighter excited about seeing his vision christened this weekend as the USS New York.
Her name is New York, but to Scott Koen, she is a phoenix.
The christening will take place Saturday at a Louisiana shipyard with a bottle of champagne smashed across her bow, which contains 24 tons of steel that once towered over Lower Manhattan.
Armed with air-defense missiles and two 30mm guns for close combat, the USS New York is designed for missions that include special operations against terrorists. It can carry a crew of 360 sailors and 700 combat-ready Marines who can reach shore by helicopter and assault craft.
The Record (NorthJersey.com)
The brains behind the use of salvaged World Trade Center steel in a new Navy warship is a Rutherford volunteer firefighter excited about seeing his vision christened this weekend as the USS New York.
Her name is New York, but to Scott Koen, she is a phoenix.
The christening will take place Saturday at a Louisiana shipyard with a bottle of champagne smashed across her bow, which contains 24 tons of steel that once towered over Lower Manhattan.
Armed with air-defense missiles and two 30mm guns for close combat, the USS New York is designed for missions that include special operations against terrorists. It can carry a crew of 360 sailors and 700 combat-ready Marines who can reach shore by helicopter and assault craft.
Wednesday, February 27, 2008
Canada's Budget promises relief for manufacturing sector
The news today in Canada is yesterday's budget, and the "headline" that there's a lot in there to help Canadian manufacturing, the "engine" of Ontario.
Well, is it true?
The federal government is providing $1 billion in tax relief for Canada's ailing manufacturing and processing sector by extending the accelerated capital cost allowance (CCA) for businesses.
Finance Minister Jim Flaherty said Tuesday that the government will allow businesses to use the accelerated CCA, on a declining basis, until the end of the 2012-13 fiscal year.
The CCA is a non-refundable tax deduction that reduces taxes owed by permitting the cost of business-related assets to be deducted from income over a prescribed number of years.
On occasion, a CCA rate is "accelerated" to increase the incentive for investing in an asset by permitting it to depreciate more quickly.
The accelerated CCA plan introduced in the 2007 Budget allowed manufacturing businesses to fully write off investments in machinery and equipment within two years.
This says that, if you have the money to invest in new machinery, you can pay it off sooner, that is, write it down sooner, lowering your tax bill. Hopefully, you'll take some of the tax refund and use it to actually pay it down faster at the bank, thereby also reducing borrowing costs, another expense.
But let's think about this a bit. Many Canadian manufacturers are already on the ropes, hanging on by their fingernails. Are investments in new machinery uppermost in their minds? Are new machines even in the picture? I don't think so. They're doing everything they can to keep from laying off more people, to hang on to loyal employees.
While I applaud government efforts to reward newer, higher-productivity machinery, that shouldn't be the whole picture. How about a reduction on Workers Comp premiums for companies with good safety records? How about cost sharing on CPP for a year or two? These are costs every manufacturer, even those on the ropes, has, and so every manufacturer will benefit from them.
So what do other people thing?
Manufacturers say budget comes up short Reuters Canada says:
Canada's budget offered some financial help for the country's struggling manufacturing sector on Tuesday, but industry groups said it would not be enough to offset the impact of a strong domestic currency, a slumping U.S. economy and low-cost global competition.
[...]
Industry groups, however, said the one-year extension of the 50 percent rate would not give capital-intensive industries the time and funds needed to plan and execute the big investments they need to compete internationally.
"It's really a grab bag of goodies, some loose pocket change being thrown to the manufacturers," Jayson Meyers, president of the Canadian Manufacturers and Exporters Association, told Reuters.
[...]
Jim Stanford, an economist at the Canadian Auto Workers union, said the auto fund would not help workers who are losing their jobs as the industry cuts back.
"We would have preferred to see Mr Flaherty take a billion dollars out of that whopping 2007 surplus and create a real auto investment fund to match Ontario's billion-dollar fund," Stanford said.
The Toronto Star called it a show about nothing
Well, is it true?
The federal government is providing $1 billion in tax relief for Canada's ailing manufacturing and processing sector by extending the accelerated capital cost allowance (CCA) for businesses.
Finance Minister Jim Flaherty said Tuesday that the government will allow businesses to use the accelerated CCA, on a declining basis, until the end of the 2012-13 fiscal year.
The CCA is a non-refundable tax deduction that reduces taxes owed by permitting the cost of business-related assets to be deducted from income over a prescribed number of years.
On occasion, a CCA rate is "accelerated" to increase the incentive for investing in an asset by permitting it to depreciate more quickly.
The accelerated CCA plan introduced in the 2007 Budget allowed manufacturing businesses to fully write off investments in machinery and equipment within two years.
This says that, if you have the money to invest in new machinery, you can pay it off sooner, that is, write it down sooner, lowering your tax bill. Hopefully, you'll take some of the tax refund and use it to actually pay it down faster at the bank, thereby also reducing borrowing costs, another expense.
But let's think about this a bit. Many Canadian manufacturers are already on the ropes, hanging on by their fingernails. Are investments in new machinery uppermost in their minds? Are new machines even in the picture? I don't think so. They're doing everything they can to keep from laying off more people, to hang on to loyal employees.
While I applaud government efforts to reward newer, higher-productivity machinery, that shouldn't be the whole picture. How about a reduction on Workers Comp premiums for companies with good safety records? How about cost sharing on CPP for a year or two? These are costs every manufacturer, even those on the ropes, has, and so every manufacturer will benefit from them.
So what do other people thing?
Manufacturers say budget comes up short Reuters Canada says:
Canada's budget offered some financial help for the country's struggling manufacturing sector on Tuesday, but industry groups said it would not be enough to offset the impact of a strong domestic currency, a slumping U.S. economy and low-cost global competition.
[...]
Industry groups, however, said the one-year extension of the 50 percent rate would not give capital-intensive industries the time and funds needed to plan and execute the big investments they need to compete internationally.
"It's really a grab bag of goodies, some loose pocket change being thrown to the manufacturers," Jayson Meyers, president of the Canadian Manufacturers and Exporters Association, told Reuters.
[...]
Jim Stanford, an economist at the Canadian Auto Workers union, said the auto fund would not help workers who are losing their jobs as the industry cuts back.
"We would have preferred to see Mr Flaherty take a billion dollars out of that whopping 2007 surplus and create a real auto investment fund to match Ontario's billion-dollar fund," Stanford said.
The Toronto Star called it a show about nothing
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.
Steel Futures begin trading on London Metal Exchange
I am suspicious of stock market mechanisms being introduced further into steel making. I'm not convinced that shareholders, with their quarterly-profits mentality, mix well with an industry where investments are made for a decade or more. However, I'm also unconvinced by the steel industries response ... that consolidation is a better way forward.
International Herald Tribune
New steel futures contracts introduced Monday in London could fill an information gap for one of the world's largest industries and shed light on global economic health, a leading British fund manager said.
"You've got this area from iron ore to a whole range of steel products that aren't catered for on an exchange," Frances Hudson, global thematic strategist at Standard Life, said. "These are very cyclical markets, and any additional good-quality information we can get about overall economic health is welcome."
See also AFP via yahoo news
International Herald Tribune
New steel futures contracts introduced Monday in London could fill an information gap for one of the world's largest industries and shed light on global economic health, a leading British fund manager said.
"You've got this area from iron ore to a whole range of steel products that aren't catered for on an exchange," Frances Hudson, global thematic strategist at Standard Life, said. "These are very cyclical markets, and any additional good-quality information we can get about overall economic health is welcome."
See also AFP via yahoo news
Labels: steel
Sunday, February 24, 2008
Portraits of past make up Bethlehem Steel keepsake
It's good that people are preserving the history of the Bethlehem Steel plant
The Morning Call
Bethlehem Steel photographer Peter Treiber went searching for his old negatives in company files in 1999, and he discovered something unsettling.
They were gone.
''There's a lot of photos, but they're spread all over,'' he said. ''No one knows where they all are. I was kind of upset no one was really preserving the history of Bethlehem Steel.''
As a result, Treiber set out to create a record of the Steel in his own pictures, which culminated in the book, ''Inside Bethlehem Steel: The Final Quarter Century.''
The Morning Call
Bethlehem Steel photographer Peter Treiber went searching for his old negatives in company files in 1999, and he discovered something unsettling.
They were gone.
''There's a lot of photos, but they're spread all over,'' he said. ''No one knows where they all are. I was kind of upset no one was really preserving the history of Bethlehem Steel.''
As a result, Treiber set out to create a record of the Steel in his own pictures, which culminated in the book, ''Inside Bethlehem Steel: The Final Quarter Century.''
Labels: steel
Saturday, February 23, 2008
Steel prices squeezing industries
Steel prices keep rising, tarifs on cheaper off-shore steel remain on, and yet the finished goods, made from cheaper off-shore steel, are shipped into North America untarifed. So how can metal stampers survive when they can't even buy the raw materials, in some cases, for what the customer is asking for as a price for finished product?
The Times of Northwest Indiana
U.S. mills have increased spot prices for hot rolled steel to above $700 a ton for March delivery, a hike of about $50 per ton from the previous period and almost $200 a ton higher than in August. Prices for tubular steel have jumped to as much as $200 per ton from $75 a ton for March delivery. Bar and plate prices have been a bit more restrained.
Nucor recently reduced its raw material surcharge for rebar, merchant bar and structural products by $10 per hundred weight, but increased its base price by the same amount,
Rather than to increase profit margins, steelmakers contend they are raising prices to recover climbing costs for iron ore, ferroalloys, coke, scrap, energy and shipping.
At the $700-plus-per-ton level, the price of hot rolled sheet is at its highest point to date, said Tom Stundza, author of the monthly Steel Flash Report.
Despite poor demand from the housing, automotive and appliances steel-consuming sectors, steel companies appear confident that price hikes will stick.
I especially like this line, near the bottom of the article:
In a recent speech on the North American steel industry, AIIS President David Phelps said given the consolidation of the domestic steel industry, it's likely producers will succeed in defending their profit margins while squeezing those of steel users. [emphasis mine]
The Times of Northwest Indiana
U.S. mills have increased spot prices for hot rolled steel to above $700 a ton for March delivery, a hike of about $50 per ton from the previous period and almost $200 a ton higher than in August. Prices for tubular steel have jumped to as much as $200 per ton from $75 a ton for March delivery. Bar and plate prices have been a bit more restrained.
Nucor recently reduced its raw material surcharge for rebar, merchant bar and structural products by $10 per hundred weight, but increased its base price by the same amount,
Rather than to increase profit margins, steelmakers contend they are raising prices to recover climbing costs for iron ore, ferroalloys, coke, scrap, energy and shipping.
At the $700-plus-per-ton level, the price of hot rolled sheet is at its highest point to date, said Tom Stundza, author of the monthly Steel Flash Report.
Despite poor demand from the housing, automotive and appliances steel-consuming sectors, steel companies appear confident that price hikes will stick.
I especially like this line, near the bottom of the article:
In a recent speech on the North American steel industry, AIIS President David Phelps said given the consolidation of the domestic steel industry, it's likely producers will succeed in defending their profit margins while squeezing those of steel users. [emphasis mine]
Labels: steel
Long journey of Freedom Tower steel
Some behind-the-scenes information about rebuilding where the twin towers stood.
AP via Yahoo! News
The steel bound for the Freedom Tower at ground zero travels thousands of miles, from a plant in Luxembourg where columns are rolled through casting machines at temperatures approaching 2,340 degrees.
Scrap metal melted into liquid steel in an electric furnace is cast, heated, cooled and heated again at the ArcelorMittal steel mill in Differdange.
The steel makes its way to a plant in Virginia where the huge columns are cut to size. Eventually, it is shipped to New York City, where the columns are lifted by crane and painstakingly set on top of each other at ground zero.
The jumbo steel columns — foot by foot, ton by ton — are forming the skeleton of the 1,776-foot Freedom Tower, designed just after the 2001 attacks to replace the destroyed World Trade Center. Each column makes a 4,700-mile journey, taking weeks and sometimes months to arrive at ground zero.
AP via Yahoo! News
The steel bound for the Freedom Tower at ground zero travels thousands of miles, from a plant in Luxembourg where columns are rolled through casting machines at temperatures approaching 2,340 degrees.
Scrap metal melted into liquid steel in an electric furnace is cast, heated, cooled and heated again at the ArcelorMittal steel mill in Differdange.
The steel makes its way to a plant in Virginia where the huge columns are cut to size. Eventually, it is shipped to New York City, where the columns are lifted by crane and painstakingly set on top of each other at ground zero.
The jumbo steel columns — foot by foot, ton by ton — are forming the skeleton of the 1,776-foot Freedom Tower, designed just after the 2001 attacks to replace the destroyed World Trade Center. Each column makes a 4,700-mile journey, taking weeks and sometimes months to arrive at ground zero.
Sunday, February 10, 2008
Poole begins Senate filibuster over steel coil legislation
This issue of steel coils rolling off flatbeds and damaging roads and potentially injuring people seems like a pretty straightforward "clear and present danger", yet legislators are still playing political football with it. He didn't widen the road last year, so I'm not going to increase fines this year. Sheesh! Sounds like public school, not a state legislature.
GadsdenTimes.com
Sen. Phil Poole, D-Tuscaloosa, started another filibuster last week over a bill sought by Gov. Bob Riley that would up penalties to truckers and companies that allow those gigantic rolls of steel to bounce off their trucks, damaging roads and endangering motorists.
[...]
Waggoner said it costs $200,000 to fix each hole in pavement when a steel coil rolls off a truck.
GadsdenTimes.com
Sen. Phil Poole, D-Tuscaloosa, started another filibuster last week over a bill sought by Gov. Bob Riley that would up penalties to truckers and companies that allow those gigantic rolls of steel to bounce off their trucks, damaging roads and endangering motorists.
[...]
Waggoner said it costs $200,000 to fix each hole in pavement when a steel coil rolls off a truck.
Saturday, February 09, 2008
Bamboo, dubbed 'vegetal steel,' superb for building
Ah, but can you stamp it?
Charleston Daily Mail
Forget steel and concrete. The building material of choice for the 21st century might just be bamboo.
This hollow-stemmed grass isn't just for flimsy tropical huts any more - it's getting outsized attention in the world of serious architecture. From Hawaii to Vietnam, it's used to build everything from luxury homes and holiday resorts to churches and bridges.
Boosters call it "vegetal steel," with clear environmental appeal. Lighter than steel but five times stronger than concrete, bamboo is native to every continent except Europe and Antarctica. And unlike slow-to-harvest timber, bamboo's woody stalks can shoot up several feet a day, absorbing four times as much world-warming carbon dioxide.
"The relationship to weight and resistance is the best in the world. Anything built with steel, I can do in bamboo faster and just as cheaply," said Colombian architect Simon Velez
Charleston Daily Mail
Forget steel and concrete. The building material of choice for the 21st century might just be bamboo.
This hollow-stemmed grass isn't just for flimsy tropical huts any more - it's getting outsized attention in the world of serious architecture. From Hawaii to Vietnam, it's used to build everything from luxury homes and holiday resorts to churches and bridges.
Boosters call it "vegetal steel," with clear environmental appeal. Lighter than steel but five times stronger than concrete, bamboo is native to every continent except Europe and Antarctica. And unlike slow-to-harvest timber, bamboo's woody stalks can shoot up several feet a day, absorbing four times as much world-warming carbon dioxide.
"The relationship to weight and resistance is the best in the world. Anything built with steel, I can do in bamboo faster and just as cheaply," said Colombian architect Simon Velez
Sunday, December 30, 2007
German Steel Sector to Stagnate in 2008
Deutsche Welle | 30.12.2007
After years of record growth, Germany's key steel sector is likely to face more uncertain times as the fall in the dollar and the global credit crunch raise business risks, the nation's steel industry association said.After years of record growth, Germany's key steel sector is likely to face more uncertain times as the fall in the dollar and the global credit crunch raise business risks, the nation's steel industry association said.
[he said] major export industries such as the automotive field and electrical engineering were likely to be hit by a weaker dollar with automakers also scaling back demand as a result of concerns about new CO2 emission rules.
After years of record growth, Germany's key steel sector is likely to face more uncertain times as the fall in the dollar and the global credit crunch raise business risks, the nation's steel industry association said.After years of record growth, Germany's key steel sector is likely to face more uncertain times as the fall in the dollar and the global credit crunch raise business risks, the nation's steel industry association said.
[he said] major export industries such as the automotive field and electrical engineering were likely to be hit by a weaker dollar with automakers also scaling back demand as a result of concerns about new CO2 emission rules.
Labels: steel
Wednesday, December 26, 2007
Steel may be old, but Asia helps makes it a hot commodity here
Newcor Steel in Seattle is selling remelt (recycled) steel to Asia.
Seattle Times Newspaper
Late in 2007, containers of raw steel began leaving Nucor Seattle for buyers in Taiwan and Indonesia as the city's only steel mill began exporting steel to Asia.
It is a small amount. Perhaps more significant, Canada, a tariff-free market, takes 30 percent of the plant's output. The Seattle plant is operating its melt shop five days a week in three shifts — and is asking the pollution-control authorities to allow it to add a fourth shift and operate 24/7.
We are used to booming aircraft and software — but steel is old.
Think of it as recycling. The feedstock for the Seattle plant begins as steel cans tossed into a thousand recycling bins. It begins also as junkyard cars, derelict appliances and tangles of old reinforcing bar torn from demolished buildings. Call it scrap. At the plant in West Seattle, the old steel is grabbed by giant magnets and plunked into an electric-arc furnace to be reborn as youthful steel. All the steel made here is this recycled kind.
Seattle Times Newspaper
Late in 2007, containers of raw steel began leaving Nucor Seattle for buyers in Taiwan and Indonesia as the city's only steel mill began exporting steel to Asia.
It is a small amount. Perhaps more significant, Canada, a tariff-free market, takes 30 percent of the plant's output. The Seattle plant is operating its melt shop five days a week in three shifts — and is asking the pollution-control authorities to allow it to add a fourth shift and operate 24/7.
We are used to booming aircraft and software — but steel is old.
Think of it as recycling. The feedstock for the Seattle plant begins as steel cans tossed into a thousand recycling bins. It begins also as junkyard cars, derelict appliances and tangles of old reinforcing bar torn from demolished buildings. Call it scrap. At the plant in West Seattle, the old steel is grabbed by giant magnets and plunked into an electric-arc furnace to be reborn as youthful steel. All the steel made here is this recycled kind.
Labels: steel
Union has new look at AK Steel
Here is some year-end followup to a story we covered a fair bit while it was on, the AK steel strike.
The Enquirer (Cincinatti)
The union that represents workers at AK Steel's Middletown Works is, like the company itself, leaner and focused on surviving in a competitive global economy.
A new union leader takes over next month, with both sides ready to look ahead after a year that began with the company in the midst of a lockout that was then the nation's longest major work stoppage. The union has also rebuilt itself a little, with new members coming from replacement workers kept after the lockout ended in March.
The Enquirer (Cincinatti)
The union that represents workers at AK Steel's Middletown Works is, like the company itself, leaner and focused on surviving in a competitive global economy.
A new union leader takes over next month, with both sides ready to look ahead after a year that began with the company in the midst of a lockout that was then the nation's longest major work stoppage. The union has also rebuilt itself a little, with new members coming from replacement workers kept after the lockout ended in March.
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.
Sunday, December 16, 2007
$800 million casino rising at site of Bethlehem Steel
delawareonline ¦ The News Journal, Wilmington, Del
BETHLEHEM, Pa. -- History buffs practically salivate at the thought of being able to explore the massive ruins of Bethlehem Steel, the industrial behemoth that armed hundreds of U.S. warships, provided the raw material for the Golden Gate Bridge and transformed the New York City skyline.
Thanks to an $800 million casino complex rising on the site, the dream that has eluded preservationists for more than a decade is now within reach: the ability to tell the story of America's industrial history through the prism of one of its most important companies.
These visitors could help provide the economic shot in the arm necessary to stabilize and maintain many of the historic buildings, making them suitable for public display.
No one knows how much it will cost to preserve the Bethlehem Steel story, or who will agree to pay for what. But Sands has already saved 20 buildings from the wrecking ball, and those who are passionate about "the Steel" say that some kind of public access is a certainty.
Here's another article that goes into more detail about what machines were preserved that might go into the museum.
Martin, Bethlehem Steel's chief engineer from 1962 to 2002, is a consultant to the National Museum of Industrial History. The nonprofit museum is planned to house the tools among myriad parts of the United States' industrial past.
Among the items sharing storage with them are a locomotive for moving ore and two Mack fire trucks from the 1960s.
The machine tools represent a small portion of the artifacts saved from Bethlehem Steel's namesake plant.
"The National Museum of Industrial History is very interested in having a working machine shop. The reason being there's not an industry of significance that doesn't have a machine shop," Martin said. "Everybody's got a machine shop."
Salvaged were 10-foot-long lathes, boring mills, band saws, swing drill presses, cast-iron structural columns and an overhead crane operated by hand with ropes.
A dozen or so volunteers spent two weekends using forklifts to ferry the tools from the South Side plant's Weldment Shop, which was subsequently demolished, to the machine shop, which is slated for preservation.
BETHLEHEM, Pa. -- History buffs practically salivate at the thought of being able to explore the massive ruins of Bethlehem Steel, the industrial behemoth that armed hundreds of U.S. warships, provided the raw material for the Golden Gate Bridge and transformed the New York City skyline.
Thanks to an $800 million casino complex rising on the site, the dream that has eluded preservationists for more than a decade is now within reach: the ability to tell the story of America's industrial history through the prism of one of its most important companies.
These visitors could help provide the economic shot in the arm necessary to stabilize and maintain many of the historic buildings, making them suitable for public display.
No one knows how much it will cost to preserve the Bethlehem Steel story, or who will agree to pay for what. But Sands has already saved 20 buildings from the wrecking ball, and those who are passionate about "the Steel" say that some kind of public access is a certainty.
Here's another article that goes into more detail about what machines were preserved that might go into the museum.
Martin, Bethlehem Steel's chief engineer from 1962 to 2002, is a consultant to the National Museum of Industrial History. The nonprofit museum is planned to house the tools among myriad parts of the United States' industrial past.
Among the items sharing storage with them are a locomotive for moving ore and two Mack fire trucks from the 1960s.
The machine tools represent a small portion of the artifacts saved from Bethlehem Steel's namesake plant.
"The National Museum of Industrial History is very interested in having a working machine shop. The reason being there's not an industry of significance that doesn't have a machine shop," Martin said. "Everybody's got a machine shop."
Salvaged were 10-foot-long lathes, boring mills, band saws, swing drill presses, cast-iron structural columns and an overhead crane operated by hand with ropes.
A dozen or so volunteers spent two weekends using forklifts to ferry the tools from the South Side plant's Weldment Shop, which was subsequently demolished, to the machine shop, which is slated for preservation.
Labels: steel
Saturday, December 15, 2007
EU threatens to impose tariffs on steel from China
Once again, no one is dealing with the problem that small and medium manufacturers have, that is, if you tarif the raw materials but not the finished goods, they get around the tarifs by supplying the finished product, a flashlight, whatever, at below our costs for the raw materials.
International Herald Tribune
The EU began an inquiry into whether Chinese exporters, including Baoshan Iron & Steel and Wuhan Iron & Steel, sell flat-rolled steel in the EU below cost, a practice known as dumping. The inquiry covers €1.2 billion, or $1.7 billion, of imports of hot-dipped metallic-coated steel.
The investigation will determine whether the steel "is being dumped and whether this dumping has caused injury," the European Commission, the executive arm of the EU, said in the Official Journal.
The commission has nine months to decide whether to impose provisional anti-dumping duties for half a year and EU governments have 15 months to decide whether to apply "definitive" levies for five years.
Here's another, similar article, from the Toronto Star, a local (to Toronto) newspaper.
EU officials have warned of a protectionist backlash if China doesn't do more to open up to European exports. They've also asked that Beijing address the valuation of the yuan, which they say gives Chinese exporters an unfair price advantage.
International Herald Tribune
The EU began an inquiry into whether Chinese exporters, including Baoshan Iron & Steel and Wuhan Iron & Steel, sell flat-rolled steel in the EU below cost, a practice known as dumping. The inquiry covers €1.2 billion, or $1.7 billion, of imports of hot-dipped metallic-coated steel.
The investigation will determine whether the steel "is being dumped and whether this dumping has caused injury," the European Commission, the executive arm of the EU, said in the Official Journal.
The commission has nine months to decide whether to impose provisional anti-dumping duties for half a year and EU governments have 15 months to decide whether to apply "definitive" levies for five years.
Here's another, similar article, from the Toronto Star, a local (to Toronto) newspaper.
EU officials have warned of a protectionist backlash if China doesn't do more to open up to European exports. They've also asked that Beijing address the valuation of the yuan, which they say gives Chinese exporters an unfair price advantage.
Labels: Copper, currency, manipulation, steel
Sunday, December 09, 2007
Steel jobs are here again
I wondered when someone would bring this up. The boomer wave should be retiring in the next while, opening up new job opportunities for younger people to work in the steel industry.
On the other hand, if too many retire all at once, there will be a need for some to stay, or else the critical information about how the processes work will not be passed on from one generation to the next.
nwi.com
Retirements are looming at the steel plants along the Lake Michigan shoreline as the baby boomers hired in their late adolescence and early adulthood when the industry was booming begin to qualify for pensions. It's estimated that more than half of the region's hourly and salaried steel industry workers will be eligible for retirement by 2012, creating plentiful job openings in the coming years.
On the other hand, if too many retire all at once, there will be a need for some to stay, or else the critical information about how the processes work will not be passed on from one generation to the next.
nwi.com
Retirements are looming at the steel plants along the Lake Michigan shoreline as the baby boomers hired in their late adolescence and early adulthood when the industry was booming begin to qualify for pensions. It's estimated that more than half of the region's hourly and salaried steel industry workers will be eligible for retirement by 2012, creating plentiful job openings in the coming years.
Labels: steel
Tuesday, December 04, 2007
Steel giant ThyssenKrupp sees slower growth ahead
Yahoo! News
German steel group ThyssenKrupp on Tuesday reported a record net profit for its 2006-2007 fiscal year, but chief executive Ekkehard Schulz indicated later that growth could slow considerably this year.
He also forecast another "good year" for steel demand in 2008 but noted that demand for stainless steel was expected to cool slightly after record results in 2007.
German steel group ThyssenKrupp on Tuesday reported a record net profit for its 2006-2007 fiscal year, but chief executive Ekkehard Schulz indicated later that growth could slow considerably this year.
He also forecast another "good year" for steel demand in 2008 but noted that demand for stainless steel was expected to cool slightly after record results in 2007.
Labels: steel
Sunday, November 11, 2007
Two ways of making steel, both produce greenhouse gases
The Plain Dealer had two good articles on global warming tradeoffs in steel making. The URL listed here is the shorter article. Basically, the electric arc furnaces create less greenhouse gasses, but even they aren't perfect, because the vast quantities of electricity they use isn't clean yet either.
The longer, more detailed article is here.
There are two basic ways to make steel in this country. One is from scratch. The other is by recycling.
And as you might expect, the scale is now balanced toward recycling.
Slightly less than 60 percent of raw steel production in the United States is generated in electric arc furnaces, which melt steel scrap to produce new product.
The longer, more detailed article is here.
There are two basic ways to make steel in this country. One is from scratch. The other is by recycling.
And as you might expect, the scale is now balanced toward recycling.
Slightly less than 60 percent of raw steel production in the United States is generated in electric arc furnaces, which melt steel scrap to produce new product.
Labels: steel
Saturday, November 03, 2007
Bulldozers clear site for ThyssenKrupp steel mill
Montgomery Advertiser.com
Bulldozers are clearing a 3,500-acre forest beside the Tombigbee River in southwest Alabama. It won't be a vast empty lot for long as construction begins next year on the $3.7 billion ThyssenKrupp steel mill.
Top executives from the German firm, Gov. Bob Riley and more than 700 state and local officials attended Friday's groundbreaking for the massive project off U.S. 43.
"We will be in Alabama for decades to come, providing good jobs for many generations," ThyssenKrupp AG Chairman Dr. Ekkehard D. Schulz said before a high school band struck up "Sweet Home Alabama."
The company's new plant in Brazil, set to start production in 2009, will ship its steel slabs to the Alabama plant, which will produce 5.1 million metric tons of steel products.
Bulldozers are clearing a 3,500-acre forest beside the Tombigbee River in southwest Alabama. It won't be a vast empty lot for long as construction begins next year on the $3.7 billion ThyssenKrupp steel mill.
Top executives from the German firm, Gov. Bob Riley and more than 700 state and local officials attended Friday's groundbreaking for the massive project off U.S. 43.
"We will be in Alabama for decades to come, providing good jobs for many generations," ThyssenKrupp AG Chairman Dr. Ekkehard D. Schulz said before a high school band struck up "Sweet Home Alabama."
The company's new plant in Brazil, set to start production in 2009, will ship its steel slabs to the Alabama plant, which will produce 5.1 million metric tons of steel products.
Labels: steel
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.
Friday, October 05, 2007
Shares of North American steel producers dipped Thursday
What is bad news for steel producers may be better news for metal stampers ...
Financial News - Yahoo! Finance
Shares of North American steel producers dipped Thursday, after a Morgan Stanley analyst said supplies and capacity are growing just as demand is likely to slow down.
Capacity on the rise may mean a reduction in steel prices.
Just a few days ago, MEPS said something similar, although with slightly different timeframes.
The import threat is receding and volumes are expected to drop significantly - providing opportunities for the domestic mills to capture a much greater share of the slightly weakening consumption. Inventories at the service centres and OEM's will need to be replenished in the final quarter of this year and beyond. The mills' order intake should improve over the coming months leading to extended delivery lead times. This, in turn, should tighten the supply side and allow the domestic mills to push for higher prices from customers. Of course, with the prospect of rising input costs (including iron ore, coke freight and scrap), the mills will have sound cause to lift selling values for the early part of 2008.
With the prospect of a slow down in the US economy after recent financial problems we are not confident that real demand for steel will expand in the second half of next year. The recent fall in interest rates may help but confidence in the housing market may not return for some time. This impacts on sales of consumer goods and residential construction projects - affecting all the flat products. Third quarter 2008 steel price agreements could be the high point of the year for most product categories.
We continue to predict a further modest reduction in the average long products price in North America up to the turn of the year. Difficulties in both the residential and commercial construction sectors are likely to restrict real demand and opportunities for the mills to push for price increases. However, no major collapse in selling values is anticipated because input costs to the mills will, almost certainly, increase and the import threat is likely to diminish.
From: MEPS 02.10.2007 forecast
Financial News - Yahoo! Finance
Shares of North American steel producers dipped Thursday, after a Morgan Stanley analyst said supplies and capacity are growing just as demand is likely to slow down.
Capacity on the rise may mean a reduction in steel prices.
Just a few days ago, MEPS said something similar, although with slightly different timeframes.
The import threat is receding and volumes are expected to drop significantly - providing opportunities for the domestic mills to capture a much greater share of the slightly weakening consumption. Inventories at the service centres and OEM's will need to be replenished in the final quarter of this year and beyond. The mills' order intake should improve over the coming months leading to extended delivery lead times. This, in turn, should tighten the supply side and allow the domestic mills to push for higher prices from customers. Of course, with the prospect of rising input costs (including iron ore, coke freight and scrap), the mills will have sound cause to lift selling values for the early part of 2008.
With the prospect of a slow down in the US economy after recent financial problems we are not confident that real demand for steel will expand in the second half of next year. The recent fall in interest rates may help but confidence in the housing market may not return for some time. This impacts on sales of consumer goods and residential construction projects - affecting all the flat products. Third quarter 2008 steel price agreements could be the high point of the year for most product categories.
We continue to predict a further modest reduction in the average long products price in North America up to the turn of the year. Difficulties in both the residential and commercial construction sectors are likely to restrict real demand and opportunities for the mills to push for price increases. However, no major collapse in selling values is anticipated because input costs to the mills will, almost certainly, increase and the import threat is likely to diminish.
From: MEPS 02.10.2007 forecast
Labels: steel
Scientists create transparent, thin plastic strong like steel
It's missing some properties that would be needed to make it a steel-killer, but it's an interesting development none-the-less.
Yahoo! News
Scientists have developed a transparent new plastic as strong as steel and as thin as a sheet of paper, according to a study released Thursday by Science magazine.
Made out of clay and a non-toxic glue similar to that used in school classrooms, the composite plastic is biodegradable and requires very little energy to produce, lead researcher Nicholas Kotov said.
It takes a few hours to build up the 300 layers needed to make a thin sheet of the plastic as the robot's arm dips in an out of vials of glue and a dispersion of clay nanosheets.
The resulting sheet is a meter square, so it's not exactly fast to make, but the technology could probably scale and be replicated for faster production.
Yahoo! News
Scientists have developed a transparent new plastic as strong as steel and as thin as a sheet of paper, according to a study released Thursday by Science magazine.
Made out of clay and a non-toxic glue similar to that used in school classrooms, the composite plastic is biodegradable and requires very little energy to produce, lead researcher Nicholas Kotov said.
It takes a few hours to build up the 300 layers needed to make a thin sheet of the plastic as the robot's arm dips in an out of vials of glue and a dispersion of clay nanosheets.
The resulting sheet is a meter square, so it's not exactly fast to make, but the technology could probably scale and be replicated for faster production.
Labels: steel
Monday, October 01, 2007
ArcelorMittal, ThyssenKrupp Steel Closing E-Commerce Site
This seems odd. The concept is obsolete, so they're going to making their own web sites that do the same thing ... what am I missing?
Metal Producing & Processing
ArcelorMittal and ThyssenKrupp Steel have decided to close Steel 24-7, the e-commerce platform they own and had been administrating jointly.
Reports indicate that Steel 24-7 has more than 700 registered customers in 37 countries, though most of the buyers are understood to be European operations. More than 1 million transactions are said to have been processed during the site's years of operation.
Metal Producing & Processing
ArcelorMittal and ThyssenKrupp Steel have decided to close Steel 24-7, the e-commerce platform they own and had been administrating jointly.
Reports indicate that Steel 24-7 has more than 700 registered customers in 37 countries, though most of the buyers are understood to be European operations. More than 1 million transactions are said to have been processed during the site's years of operation.
Labels: steel
Wednesday, September 26, 2007
UAW, GM settle strike with new health care deal
Considering what a long strike everyone was saying this was going to be, it sure was over fast!
Reuters via Yahoo! Canada Finance
DETROIT (Reuters) - The United Auto Workers union on Wednesday agreed a contract with General Motors Corp ending a national strike by 73,000 workers, with a deal that includes a groundbreaking health-care trust fund. Union President Ron Gettelfinger, speaking at a news conference at the union's Detroit headquarters and surrounded by cheering UAW officials, said production at GM facilities would resume on Wednesday and ratification of the agreement by GM workers would begin this week. 'We feel very confident it will be ratified,' Gettelfinger said of the tentative four-year agreement.
GM said the national agreement "paves the way for GM to significantly improve its manufacturing competitiveness" and maintain a strong production presence in the United States.
A GM spokeswoman said the automaker would not provide details of the agreement until it was presented to UAW workers for ratification.
Gettelfinger said he would not disclose details of the agreement at this time. But he did say it includes a landmark health-care deal, under which responsibility for retiree health care would shift to a new UAW-aligned trust fund known as a voluntary employee beneficiary association, or VEBA.
Wall Street analysts have said establishing a VEBA could cut GM's annual costs by $3 billion in exchange for a one-off payment expected to top $30 billion.
Reuters via Yahoo! Canada Finance
DETROIT (Reuters) - The United Auto Workers union on Wednesday agreed a contract with General Motors Corp ending a national strike by 73,000 workers, with a deal that includes a groundbreaking health-care trust fund. Union President Ron Gettelfinger, speaking at a news conference at the union's Detroit headquarters and surrounded by cheering UAW officials, said production at GM facilities would resume on Wednesday and ratification of the agreement by GM workers would begin this week. 'We feel very confident it will be ratified,' Gettelfinger said of the tentative four-year agreement.
GM said the national agreement "paves the way for GM to significantly improve its manufacturing competitiveness" and maintain a strong production presence in the United States.
A GM spokeswoman said the automaker would not provide details of the agreement until it was presented to UAW workers for ratification.
Gettelfinger said he would not disclose details of the agreement at this time. But he did say it includes a landmark health-care deal, under which responsibility for retiree health care would shift to a new UAW-aligned trust fund known as a voluntary employee beneficiary association, or VEBA.
Wall Street analysts have said establishing a VEBA could cut GM's annual costs by $3 billion in exchange for a one-off payment expected to top $30 billion.
Labels: auto, manufacturing, steel
Tuesday, September 25, 2007
In G.M. Strike, Both Sides See a Crossroads
Well, the big news today for metal stampers has got to be the GM strike.
New York Times
The United Automobile Workers union wielded its most potent weapon against General Motors yesterday, sending 73,000 workers to picket lines in its first national strike at G.M. since 1970.
But what does it mean for metal stampers? If you supply GM, various industry officials say that 2 supplier jobs for every GM worker job are also in danger. That's almost 150,000 jobs in parts manufacturing.
Beyond that, if the strike goes on for any length of time, the GM steel consumption will be taken out of the steel marketplace. There's a chance that steel lead times will drop, and perhaps also steel prices.
I guess we'll have to wait and see.
New York Times
The United Automobile Workers union wielded its most potent weapon against General Motors yesterday, sending 73,000 workers to picket lines in its first national strike at G.M. since 1970.
But what does it mean for metal stampers? If you supply GM, various industry officials say that 2 supplier jobs for every GM worker job are also in danger. That's almost 150,000 jobs in parts manufacturing.
Beyond that, if the strike goes on for any length of time, the GM steel consumption will be taken out of the steel marketplace. There's a chance that steel lead times will drop, and perhaps also steel prices.
I guess we'll have to wait and see.
Labels: auto, manufacturing, steel
Sunday, September 09, 2007
Minn. Steel's Nashwauk Project Passes Final Hurdle
This is interesting. Steel would be produced to the slab level right at the mine site cutting out, I guess, one level of transportation.
wcco.com
Construction of a $1.6 billion taconite-to-steel plant near Nashwauk can move forward, now that a Minnesota Pollution Control Agency board approved an air permit for the project. The pollution board voted for the permit 8-0 Friday after a hearing in St. Paul. The process was the last of many governmental approvals that Minnesota Steel needed to build the plant, which would be the nation's first operation that produces steel at the site where the ore is mined.
wcco.com
Construction of a $1.6 billion taconite-to-steel plant near Nashwauk can move forward, now that a Minnesota Pollution Control Agency board approved an air permit for the project. The pollution board voted for the permit 8-0 Friday after a hearing in St. Paul. The process was the last of many governmental approvals that Minnesota Steel needed to build the plant, which would be the nation's first operation that produces steel at the site where the ore is mined.
Labels: steel
Suit To Bar U.S. Steel From Hauling Coils In Ala. Dropped
You may remember that there was a rash of steel coils falling off open-bed transport trucks a year ago. Here's the followup from one law suit in one area (Alabama).
NBC13.com
A lawsuit asking a judge to bar U.S. Steel from hauling steel coils on Alabama highways will be dismissed if the company requires its drivers to provide proof they have received proper training.
U.S. Steel officials said most of the incidents involving the steel coils have resulted from driver error.
NBC13.com
A lawsuit asking a judge to bar U.S. Steel from hauling steel coils on Alabama highways will be dismissed if the company requires its drivers to provide proof they have received proper training.
U.S. Steel officials said most of the incidents involving the steel coils have resulted from driver error.
Labels: steel
Monday, August 27, 2007
Another one bites the dust - Stelco sold
So Stelco has been sold. The last Canadian owned steel mill is gone.
From the Stelco web site:
PITTSBURGH and HAMILTON, ON, Aug. 26, 2007 -- United States Steel Corporation and Stelco Inc., announced today that they have entered into a definitive agreement pursuant to which U. S. Steel will acquire Stelco for $38.50 (Canadian) in cash per share.
From the Stelco web site:
PITTSBURGH and HAMILTON, ON, Aug. 26, 2007 -- United States Steel Corporation and Stelco Inc., announced today that they have entered into a definitive agreement pursuant to which U. S. Steel will acquire Stelco for $38.50 (Canadian) in cash per share.
Labels: steel
Wednesday, August 01, 2007
Nickel Pricing forecast for the short and medium term
From: MEPS
Nickel prices moved lower in July as they fell further into their deep descent. The July monthly average is set to be around $US8,500 per tonne lower than June's figure. Values are now forecast to go below the psychological $US30,000 per tonne in August as stocks on the LME continue to rise. There is still the possibility for another severe drop in the cost of nickel. Stability should return to the market later this year as production cuts from stainless steel producers over the Summer months come to an end. New nickel capacity, due on stream later this year and in 2008, is expected to prevent values rising dramatically before the end of the forecast period.
Nickel prices moved lower in July as they fell further into their deep descent. The July monthly average is set to be around $US8,500 per tonne lower than June's figure. Values are now forecast to go below the psychological $US30,000 per tonne in August as stocks on the LME continue to rise. There is still the possibility for another severe drop in the cost of nickel. Stability should return to the market later this year as production cuts from stainless steel producers over the Summer months come to an end. New nickel capacity, due on stream later this year and in 2008, is expected to prevent values rising dramatically before the end of the forecast period.
STAINLESS STEEL PRICES IN TURMOIL AFTER COLLAPSE OF NICKEL ON LME
From MEPS, a steel-supplier-side news service, but important for us steel consumers too.
Western stainless steel producers of strip mill products have temporarily abandoned their traditional basis plus surcharge mechanism for selling their material. Most EU and US mills are now quoting only transaction (effective) figures. This is, principally, to disguise the discounts necessary to obtain orders after the fall in the price of nickel since early June.
Technically, surcharges in July for grade 304 increased by around 5 and 3 percent in the EU and US, respectively. With the prospect of them falling over the next two months by almost €750 and $US1400 per tonne it is not surprising that customers are refusing to pay the current inflated figures. The alloy surcharge is almost meaningless in negotiations at this time.
Mill orders have dried up. Many producers have plans to cut output in the short term but are pushing material into stock and selling at substantially discounted levels to generate the limited business available.
Western stainless steel producers of strip mill products have temporarily abandoned their traditional basis plus surcharge mechanism for selling their material. Most EU and US mills are now quoting only transaction (effective) figures. This is, principally, to disguise the discounts necessary to obtain orders after the fall in the price of nickel since early June.
Technically, surcharges in July for grade 304 increased by around 5 and 3 percent in the EU and US, respectively. With the prospect of them falling over the next two months by almost €750 and $US1400 per tonne it is not surprising that customers are refusing to pay the current inflated figures. The alloy surcharge is almost meaningless in negotiations at this time.
Mill orders have dried up. Many producers have plans to cut output in the short term but are pushing material into stock and selling at substantially discounted levels to generate the limited business available.
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
Saturday, July 21, 2007
Mercedes SLC Supercar To Feature Aluminum Construction
Aluminum cars, to reduce weight. Considering how much steel has gone up these days, there might be price as well as weight advantages in the future.
MobileMag
"There are several factors that go into making a fast car and having a powerful engine is just one piece of the puzzle. Mercedes will reportedly tackle another piece -- curb weight -- on their upcoming SLC supercar by building the model out of aluminum. "
MobileMag
"There are several factors that go into making a fast car and having a powerful engine is just one piece of the puzzle. Mercedes will reportedly tackle another piece -- curb weight -- on their upcoming SLC supercar by building the model out of aluminum. "
Wednesday, July 11, 2007
Metinvest says mulling purchase of Stelco
At the beginning of June, Stelco said they were looking for a buyer.
Late last week, this hit the news, but I didn't get around to reporting it until this week.
Ukraine's Metinvest confirmed on Friday that it is considering acquiring, or investing in, steelmaker Stelco Inc., but said it has made no firm decision.
Metinvest's statement followed a report in the Globe and Mail newspaper, citing unnamed sources, that said officials from Metinvest have toured Stelco facilities in the weeks since the steel company put itself up for sale last month.
Stelco is the only big steelmaker in Canada that is still Canadian-owned.
The Globe's Report on Business, in addition to reporting more or less the same content, had this interesting few paragraphs part way down their article:
Consolidation has swept aside Stelco's neighbour Dofasco Inc., Essar's deal for Algoma closed last month, and shareholders will vote on a $7.7-billion (U.S.) buyout of Ipsco Inc. by Svenskt Steel AB later this month.
Those transactions have helped reduce the number of mid-sized, relatively cheap North American steel assets to three.
They are Stelco, AK Steel Holding Corp. of Middletown, Ohio, and a mill near Baltimore, Md., that Mittal Arcelor, the world's largest steel maker, has been ordered to sell by the U.S. government.
Of course, consolidation of steel suppliers means lack of competition on the supply side, and makes it very hard for small metal stampers to have a say in their own input costs.
Late last week, this hit the news, but I didn't get around to reporting it until this week.
Ukraine's Metinvest confirmed on Friday that it is considering acquiring, or investing in, steelmaker Stelco Inc., but said it has made no firm decision.
Metinvest's statement followed a report in the Globe and Mail newspaper, citing unnamed sources, that said officials from Metinvest have toured Stelco facilities in the weeks since the steel company put itself up for sale last month.
Stelco is the only big steelmaker in Canada that is still Canadian-owned.
The Globe's Report on Business, in addition to reporting more or less the same content, had this interesting few paragraphs part way down their article:
Consolidation has swept aside Stelco's neighbour Dofasco Inc., Essar's deal for Algoma closed last month, and shareholders will vote on a $7.7-billion (U.S.) buyout of Ipsco Inc. by Svenskt Steel AB later this month.
Those transactions have helped reduce the number of mid-sized, relatively cheap North American steel assets to three.
They are Stelco, AK Steel Holding Corp. of Middletown, Ohio, and a mill near Baltimore, Md., that Mittal Arcelor, the world's largest steel maker, has been ordered to sell by the U.S. government.
Of course, consolidation of steel suppliers means lack of competition on the supply side, and makes it very hard for small metal stampers to have a say in their own input costs.
Labels: 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, June 02, 2007
Canadian Steel Maker Looks for Buyer
This would be the end of an era for Stelco. Friends of my family worked at Stelco going back to the '60s.
NY Times
Stelco, Canada’s last domestically owned steel maker, said Friday that it was in early talks that might lead to its sale.
While foreign buyers have gradually taken control of Canada’s other steel companies, including Dofasco, Stelco remains independent, largely because it is unprofitable and some of its plants are outdated. Stelco emerged from a prolonged period of bankruptcy restructuring in March 2006 burdened with debt and pension obligations.
Stelco shares skyrocket as steel maker seeks buyer
The Toronto Star
Stelco Inc. shares shot up yesterday after the money-losing steel giant revealed it is looking at a possible sale or partnership after almost a century as a Canadian industrial icon.
The company's shares soared $5.03 – or more than 18 per cent – to $31.93 on heavy trading volume on the Toronto Stock Exchange, as investors bet on potential suitors pushing up the company's value.
Stelco sale would be end of era for Canadian steel
Reuters via Yahoo
The Canadian steel industry, which has been thinned by a slew of foreign takeovers, could lose its last big domestic-owned steelmaker after Stelco Inc. put itself on the auction block on Friday.
But Stelco's confirmation that it has put itself up for sale did not come as a surprise given a rapidly consolidating global steel industry that has seen big foreign companies feast on Canadian steelmakers.
"Stelco, in a Canadian context, was the last man on the block," said Randy Cousins, an analyst at BMO Capital Markets. "So is it a surprise that we are seeing this announcement? Not at all. It's just a continuation of what's been going on."
Here is the official announcement, off the Stelco website.
HAMILTON, ON, Jun 1, 2007 (Canada NewsWire via COMTEX News Network) -- Stelco Inc. (TSX: STE) today confirmed that it is reviewing strategic options for the company in light of the ongoing consolidation in the steel industry. The company has appointed a special committee of directors and CIBC World Markets and UBS to assist it in this review. The company intends to evaluate a broad range of possible alternatives including mergers, strategic partnerships, acquisitions or a sale of all or part of the company.
Discussions regarding these alternatives with third parties are at a very preliminary stage and there have been no discussions on the material terms of any transaction.
There's a lot more, but that's the gist of it.
NY Times
Stelco, Canada’s last domestically owned steel maker, said Friday that it was in early talks that might lead to its sale.
While foreign buyers have gradually taken control of Canada’s other steel companies, including Dofasco, Stelco remains independent, largely because it is unprofitable and some of its plants are outdated. Stelco emerged from a prolonged period of bankruptcy restructuring in March 2006 burdened with debt and pension obligations.
Stelco shares skyrocket as steel maker seeks buyer
The Toronto Star
Stelco Inc. shares shot up yesterday after the money-losing steel giant revealed it is looking at a possible sale or partnership after almost a century as a Canadian industrial icon.
The company's shares soared $5.03 – or more than 18 per cent – to $31.93 on heavy trading volume on the Toronto Stock Exchange, as investors bet on potential suitors pushing up the company's value.
Stelco sale would be end of era for Canadian steel
Reuters via Yahoo
The Canadian steel industry, which has been thinned by a slew of foreign takeovers, could lose its last big domestic-owned steelmaker after Stelco Inc. put itself on the auction block on Friday.
But Stelco's confirmation that it has put itself up for sale did not come as a surprise given a rapidly consolidating global steel industry that has seen big foreign companies feast on Canadian steelmakers.
"Stelco, in a Canadian context, was the last man on the block," said Randy Cousins, an analyst at BMO Capital Markets. "So is it a surprise that we are seeing this announcement? Not at all. It's just a continuation of what's been going on."
Here is the official announcement, off the Stelco website.
HAMILTON, ON, Jun 1, 2007 (Canada NewsWire via COMTEX News Network) -- Stelco Inc. (TSX: STE) today confirmed that it is reviewing strategic options for the company in light of the ongoing consolidation in the steel industry. The company has appointed a special committee of directors and CIBC World Markets and UBS to assist it in this review. The company intends to evaluate a broad range of possible alternatives including mergers, strategic partnerships, acquisitions or a sale of all or part of the company.
Discussions regarding these alternatives with third parties are at a very preliminary stage and there have been no discussions on the material terms of any transaction.
There's a lot more, but that's the gist of it.
Labels: steel
Thursday, May 31, 2007
STAINLESS STEEL PRODUCERS SET TO ACTIVELY PROMOTE NICKEL-FREE GRADES
The question becomes, will end use customers accept the new materials? Will they form similarly enough that they can be used with existing tooling? Or will jobs need to be retooled?
Our experience with one these grades (409) was that it was less "stainless", and that it required different tool steels to cut and form.
The significant investment in new equipment by steel mills implies they believe the run-up in nickel prices is not going to be short-lived. They presumably know - they're in the business. But re-tooling decisions (if needed) of stamping jobs would be made with people with less experience forecasting the future. So it isn't clear if customers will be able to switch all that quickly.
MEPS
The global stainless steel scene is changing rapidly. Customer backlash against the rising cost of nickel has been taken on board by the producers. Mills are now taking seriously market demand for low or non nickel grades.
Posco has launched a nickel free stainless steel into its portfolio. This follows similar actions earlier by Japanese producers. Outokumpu, which has traditionally been mainly a supplier of austenitic grades, is to increase its production of ferritic types. This has involved a significant investment in new equipment. Output of ferritic grades is also to be expanded from the new melting shop at Lianzhong, in China.
Global supplies of 300 series material have in the past formed 75 percent of total stainless deliveries. It is interesting to note that Thyssen Krupp recently announced that it may lift output of nickel free steel from the existing figure of 30 percent up to 35 percent. We have reports that an Arcelor Mittal senior executive sees the potential to push up production of non nickel grades to 70 percent in the long term.
Our experience with one these grades (409) was that it was less "stainless", and that it required different tool steels to cut and form.
The significant investment in new equipment by steel mills implies they believe the run-up in nickel prices is not going to be short-lived. They presumably know - they're in the business. But re-tooling decisions (if needed) of stamping jobs would be made with people with less experience forecasting the future. So it isn't clear if customers will be able to switch all that quickly.
MEPS
The global stainless steel scene is changing rapidly. Customer backlash against the rising cost of nickel has been taken on board by the producers. Mills are now taking seriously market demand for low or non nickel grades.
Posco has launched a nickel free stainless steel into its portfolio. This follows similar actions earlier by Japanese producers. Outokumpu, which has traditionally been mainly a supplier of austenitic grades, is to increase its production of ferritic types. This has involved a significant investment in new equipment. Output of ferritic grades is also to be expanded from the new melting shop at Lianzhong, in China.
Global supplies of 300 series material have in the past formed 75 percent of total stainless deliveries. It is interesting to note that Thyssen Krupp recently announced that it may lift output of nickel free steel from the existing figure of 30 percent up to 35 percent. We have reports that an Arcelor Mittal senior executive sees the potential to push up production of non nickel grades to 70 percent in the long term.
Saturday, May 26, 2007
Pedal-steel guitar players a vanishing breed
Well, this doesn't have anything to do with metal stamping, but it is about steel, pedal steel guitars, and, what the hey!, it's the weekend.
I like pedal steel guitar, when it's well played, which isn't all that often. It's got a unique sound - like a guitar, but then, not like a guitar. And they sit to play them.
Montgomery Advertiser
Changing times and tunes have cut deeply into an American musical icon -- the pedal-steel guitar.
Not only is it a difficult instrument to play, but most who mastered it are a bit long in the tooth, and there aren't many younger musicians willing to learn from them.
And it takes a while to get good at it.
I like pedal steel guitar, when it's well played, which isn't all that often. It's got a unique sound - like a guitar, but then, not like a guitar. And they sit to play them.
Montgomery Advertiser
Changing times and tunes have cut deeply into an American musical icon -- the pedal-steel guitar.
Not only is it a difficult instrument to play, but most who mastered it are a bit long in the tooth, and there aren't many younger musicians willing to learn from them.
And it takes a while to get good at it.
Labels: steel