Laying the groundwork. (Ferrous).Ferrous scrap recyclers have been telling themselves for several months that things are about to turn for the better, but finally the numbers are beginning to concur. Although overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. continues to plague the global steel industry, a reviving North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. economy combined with Section 201 protections are helping steel prices to creep back up. Scrap suppliers are anticipating that the same will follow for their commodity. Paul Lowrey of Metal Strategies, Pittsburgh, told attendees of the Ferrous Spotlight at the Annual Convention of the Institute of Scrap Recycling Industries Inc. (ISRI ISRI Institute of Scrap Recycling Industries ISRI Institute for Software Research, International (Carnegie Mellon University) ISRI Information Science Research Institute ISRI Intelligent Systems Research Institute ) in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. that the 16 steel categories that have received Section 201 trade protection from the Bush administration make up 75 percent of the import volume of steel coming into the U.S. market. Since the tariffs of up to 30 percent were announced, steelmakers are finally beginning to increase the price of their product. If the price increases stick, it will reverse a disturbing trend in steel pricing, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Lowrey. In the last decade, steel prices have declined by an average of 2.5 percent annually. "If they keep going down at this rate, steel will be free in 40 more years," Lowrey quipped. The domestic steel industry may still be at a disadvantage due to its fragmented nature, Lowrey noted. "In my opinion, consolidation is way long overdue," he remarked. Currently, though, only U.S. Steel The United States Steel Corporation (NYSE: X) is an integrated steel producer with major production operations in the United States and Central Europe. The company is the world's seventh-largest steel producer ranked by sales (see list of steel producers). , Pittsburgh, and Nucor Corp., Charlotte, N.C., have the cash on hand to spur consolidation, according to Lowrey. He noted that the nation's many steelmakers are competing against each other for orders from three large automakers, four appliance companies and four steel can companies. Even before Section 201, Lowrey noted that import tonnage started to decrease last year. "I think the worst is behind us. The decline in imports is becoming meaningful." Donald Huizenga of Kudzel Industries Inc., Muskegon, Mich., who is also president of the American Foundry Society, Des Plaines Des Plaines, city, United States Des Plaines (dĕs plānz), city (1990 pop. 53,223), Cook co., NE Ill., a suburb of Chicago on the Des Plaines River; inc. 1925. Among its manufactures are chemicals and electronic equipment. , Ill., said the foundry industry is expecting to increase its production of castings by 3 percent or 4 percent this year, with much of that growth coming in the second half of the year. Ductile iron Ductile iron, also called ductile cast iron or nodular cast iron, is a type of cast iron invented in 1943 by Keith Millis[1]. While most varieties of cast iron are brittle, ductile iron is much more ductile, as the name implies. output may rise as much as 5 percent, while gray iron is suffering from an overcapacity situation similar to the steel industry's. No. 1 Heavy Melt Composite Pricing (Per gross ton, monthly average) PRICING February 2001 $75.37 March $76.77 April $77.90 May $76.67 June $78.62 July $79.81 August $80.00 September $80.00 October $73.29 November $64.97 December $65.00 January 2002 $69.97 February $76.58 Source: American Metal Market Note: Table made from bar graph. |
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