June 2006
Association News

Currency Coalition Once Again
Frustrated by U.S. Inaction
The American coalition seeking an immediate end to China’s manipulation of its currency expressed frustration that the Bush administration once again declined to label China as guilty of the trade-distorting practice.

A Treasury Department report issued last month only reprimanded China for moving too slowly in reforming its currency regime.

“After promising to take strong action if China did not bring its exchange rate into alignment with economic fundamentals, the Department of the Treasury has again failed to take action against China’s subsidized currency. By intervening to keep the yuan severely undervalued against the dollar, China is unfairly fostering a boom in its exports at the expense of American industry, and contributing to a record-breaking U.S. trade deficit that exceeded $202 billion last year,” says China Currency Coalition spokesman David A. Hartquist.

China revalued the yuan last July by a mere 2.1 percent. Since then the yuan has risen only by an additional 1 percent against the dollar. The China Currency Coalition contends the yuan remains undervalued by about 40 percent.

“It is incredibly frustrating, given that it appears the administration recognizes China does in fact manipulate its currency, but continues an anemic ‘tough talk’ approach to the problem rather than a ‘take action’ approach,” Hartquist says. “Precious time is being lost as the administration persists in choosing not to hold China to account.”

In November 2005, the Department of the Treasury stopped short of naming China a currency manipulator, which would trigger formal consultations between Washington and Beijing. But it said that China must take additional steps on revaluing its currency to avoid the label in the future.

MCSI: Service Center Steel
Shipments Dip in April
Shipments of steel products from U.S. and Canadian service centers declined in April from year-earlier levels for the first time in eight months, according to the Metals Activity Report from the Metals Service Center Institute, Rolling Meadows, Ill. Aluminum shipments, while still growing, also slowed in both countries.

U.S. steel shipments totaled 4.56 million tons, down 0.4 percent from April 2005. For the first four months of 2006, shipments totaled 19.2 million tons, or 3.2 percent more than the same period in 2005.

Service center steel inventories at the end of April totaled almost 14 million tons, down 11.4 percent from April 2005 but up 3.4 percent from March. At the current shipping rate, this represents a 3.1-month supply, down 11.0 percent from the end of April 2005 but up 20.7 percent from March 2006.

Aluminum shipments totaled 97,600 tons in April, the MAR shows, or a rise of 2.0 percent from April 2005. Year-to-date shipments of 417,500 tons were 5.7 percent higher than during the year-ago period.

U.S. service center aluminum inventories totaled 346,300 tons as of April 30, a decrease of 7.7 percent from the 2005 month and about flat when compared with March 2006. At the current shipping rate, this represents a 3.5-month supply, a decrease of 9.5 percent from a year ago but 20.2 percent higher than the previous month.

Canadian results
Lower steel shipments in April accelerated the year-over-year decline that began in Canada in February. Canadian service centers shipped 327,200 tons of steel products during the month, a decrease of 8.6 percent from April 2005. Year-to-date shipments of nearly 1.4 million tons were down 2.8 percent from the same period last year.

Steel product inventories were almost 1.1 million tons at the end of April, a decrease of 16.4 percent from the 2005 month but 4.3 percent higher than March 2006. At the current shipping rate, this represents a 3.4-month supply, a decrease of 8.5 percent from a year ago but up 17.8 percent from March 2006.

Aluminum shipments of 9,700 tons were 1.1 percent higher than April 2005. Year-to-date shipments of 40,100 tons were 5.2 percent higher than the same period a year ago.

Canadian service centers held aluminum product inventories of 30,200 tons at the end of April, a decrease of 3.2 percent from the 2005 month and essentially flat with March 2006. At the current shipping rate, this represents a 3.1-month supply, down 4.2 percent from last year but an increase of 15.3 percent from March.

Leadership changes
In other action, MSCI has named seven metals industry leaders as directors of the institute with terms beginning July 1. New directors include: Richard J. Greaves, ThyssenKrupp Materials North America; Michael H. Goldberg, A.M. Castle & Co.; Mary Valenta, O’Neal Steel Inc.; Michael G. Rippey, Mittal Steel North America; John Palesny, Petersen Aluminum Corp.; Michael X. Cronin, Central Steel & Wire Co.; and Toros Assadourian, Gatsteel Industries Inc.

In addition, Stephen E. Makarewicz, Ryerson Inc. South Region, was named MSCI’s treasurer, succeeding G. Thomas McKane, A.M. Castle & Co., who is among six individuals retiring from the board.

Others retiring from the MSCI board include Mark Haight, Infra-Metals; Jack Malec, Great Western Steel Co.; Jean-Pierre Picard, Mittal Canada Inc.; Daniel J. McCallin, Timberline Steel; and Anthony Leto, The Wagner Companies.
Three new members of MSCI’s Executive Committee include Michael H. Hoffman, Macsteel Service Centers USA; Richard Robinson, Norfolk Iron and Metal Co.; and Edward “Bud” Siegel, Russel Metals Inc.

CBSA: Copper Shipments Up
Through First Quarter
Copper shipments showed significant year-over-year improvement during the first quarter of 2006, according to the Copper and Brass Servicenter Association, Wayne, Pa.
Copper shipments increased 18.7 percent and alloy shipments 8.8 percent vs. first-quarter 2005. Total shipments year-to-year registered a gain of 12.4 percent.

March shipments registered a 10.4 percent gain over March of last year, and the average daily shipping rate was also up that amount.

With four more shipping days in March than February, total service center shipments for the month registered a gain of 10.6 percent. However, the average daily shipping rate month-to-month decreased 7.6 percent.

March shipments of both copper and alloy pipe and tube were each off by more than 20 percent from what was achieved in March 2005. The only other product category registering a decline was “other alloy sheet,” down 10.7 percent. All other product categories registered gains.

AISI: U.S. Steel Shipments Increase in March
U.S. steel mills shipped 9,830,000 net tons in March, a 6.3 percent increase vs. March 2005, according to the American Iron and Steel Institute, Washington, D.C. March steel shipments also increased 10.0 percent vs. the previous month.

A year-to-year comparison of year-to-date shipments shows the following changes within major market classifications: service centers and distributors, down 5.0 percent; automotive, up 17.0 percent; construction and contractors’ products, up 18.0 percent; oil and gas, up 10.3 percent; machinery, industrial equipment and tools, up 16.2 percent; appliances, utensils and cutlery, down 4.1 percent; containers, packaging and shipping materials, down 9.7 percent; and electrical equipment, up 9.9 percent.

IISI: China Leads April Rise
in Steel Production
World crude steel production for the 62 countries reporting to the International Iron and Steel Institute was 99.0 million metric tons in April, 6.1 percent higher than for the same month of 2005.

Total production in the Asia region was 52.2 million tons, 12.9 percent higher than in April 2005. China produced 33.7 million tons in April, an increase of 19.0 percent over the same month in 2005. Japan produced 9.4 million tons of crude steel, up 0.3 percent year-on-year.

North American steelmakers produced 10.8 million tons in April, down 7.8 percent from the previous month and about the same as in April 2005. For the year to date, North American production was 43.8 million tons, a gain of 0.9 percent vs. the first four months of 2005.

In the EU-25, total production in April was 16.6 million tons, a year-on-year decrease of 0.6 percent for the four months. France produced 1.8 million tons of crude steel, a rise of 2.5 percent year-on-year. The United Kingdom produced 4.7 million tons to date, an increase of 3.9 percent year-on-year.

Brazil produced 2.4 million tons of crude steel in April, 12.4 percent lower than for the same month in 2005.

ISSF: Increase in Stainless
Production Forecast
Reversing the downturn in 2005, the International Stainless Steel Forum is forecasting a significant increase in stainless steel production in 2006. The projections were released at the ISSF-10 Conference in Louisville, Ky.

Actual worldwide stainless steel production in 2006 dipped by 1.0 percent to 24.3 million metric tons. The decrease was blamed on stainless steel inventory reductions by service centers and fabricators.

ISSF officials project a growth rate of 8.6 percent to 26.4 million tons this year. The 8.6 percent growth is well above the 5.6 percent annual growth forecast for 2006-2010. The growth is projected across all four stainless regions: the Americas, Western Europe, Central and Eastern Europe, and Asia.

The Americas’ production rates suffered the biggest drop in 2005, declining 8.3 percent from 2.93 million tons to 2.69 million tons. Production is expected to bounce back 6.0 percent in 2006 to 2.85 million tons.

Production in Asia, the largest stainless steel producing region and the only region to show improvement in 2005, is expected to increase 10 percent to 13.75 million tons in 2006.

After increased growth in the general economy in 2006, ISSF expects a slight flattening in 2007. This should lead to a long-term average increase in stainless steel demand provided the price and supply of alloying materials is secure and reasonable, forum officials says.

AIIS: Steel Imports Jump
Significantly in March
Steel imports continued to rise in March in response to strong customer demand in virtually all market segments, according to preliminary steel import data from the U.S. Department of Commerce, as reported by the American Institute of International Steel, Washington, D.C.

AISI President Dave Phelps says the imports were ordered near the end of 2005, when the price differential between U.S. and international markets was highest.

Total steel imports in March 2006 were 3.89 million tons compared to 3.65 million tons in February 2006, a 6.5 percent increase, and a 41 percent increase compared to March 2005. According to year-to-date figures for three months, imports increased 32.7 percent compared to 2005, or from 8.32 million tons in 2005 to 11.05 million tons in 2006.

The data show that semifinished imported products increased by 88 percent in March 2006 as compared to March 2005. For the year-to-date period, semifinished imports increased from 1.88 million tons in 2005 to 2.8 million tons in 2006, a 49.1 percent increase, AISI reports.

People
Daniel R. DiMicco, chairman, president and chief executive officer of Nucor Corp., Charlotte, N.C., was named Steelmaker of the Year at AISTech 2006, the conference managed by the Association for Iron & Steel Technology. The Steelmaker of the Year Award is presented annually by AIST to recognize notable leaders and their contributions to the steel industry.

Richard P. Teets Jr., vice president and general manager, Structural and Rail Division, Steel Dynamics Inc., Columbia City, Ind., has been appointed president of the Association for Iron & Steel Technology for 2006-2007. He replaces outgoing president Richard E. O’Hara, director, procurement and logistics, Carpenter Specialty Alloys, Reading, Pa.

The Society of Manufacturing Engineers has named Mark Tomlinson executive director and general manager. Tomlinson had been working as director of membership with responsibility for chapter and technical activities. He replaces Nancy Berg, who held the position since February 2000.

 

 
 

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