Speed It Up, Please
Most nonferrous dealers are resigned to prices staying low for the foreseeable future, but they are seeing a modest rebound, and more importantly hoping that at least the flow of material is picking back up.
One of North America’s largest stainless dealers reports that recent monthly totals have shown 30 to 40 percent less scrap flowing through its yards compared to the same monthly periods from two years ago.
The good news is that orders from stainless mills have increased, according to a manager with the firm, with particularly strong buying interest coming from South Korea and Taiwan. Whether mill activity in Asia will eventually result in more stainless scrap flowing within North America remains to be seen.
Observers throughout the metals industry are watching industrial production numbers to see whether a rebound is actually occurring. Most dealers report slow flows of aluminum and copper from industrial sources.
Automakers are scaling back production at or even shutting down some North American plants, but most are still producing a healthy number of model year 2002 vehicles.
If mill, foundry and smelter demand kicks in, it could cause the spike in scrap prices some dealers are hoping will bring a return to wider margins. Presently, though, that is still wishful thinking, and price increases have been slow to build as opposed to arriving with a sudden spike.
Most dealers are not expecting prices to spike anytime soon, although they hold out hope that macroeconomic forecasters are right when predicting a second-half 2002 boost in the economy. "My optimism is guarded," says one dealer. "The fundamentals aren’t there to encourage greater capacity for the metals industry."
COMMONWEALTH CLOSES BOOK ON BAD YEAR
Fourth quarter financial results for Commonwealth Industries Inc., Louisville, Ky., showed a $5 million operating loss combined with a $175 write-off of "impaired" assets and other nonrecurring charges.
Regarding the operating loss, a statement released with the company’s financials cited "ongoing weak customer demand and reduced business activity throughout the economy."
For 2001 as a whole, Commonwealth saw its sales decline by 18 percent, and its profits drop 43 percent. The company lost more than $17 million on an operating basis but more than $190 million with the special write-offs included.
NAME THAT ALLOY
Those seeking a bound volume with the names and properties of any type of metal likely to show up at their facility will be interested in the ninth edition of Metals and Alloys in the Unified Number Systems.
The reference book, available from ASTM International, West Conshohocken, Pa., lists 5,000 commercially used metals and alloys in one designation system, and cross-references them with the designations used by such groups as The Aluminum Association, the American Iron and Steel Institute, SAE’s Aerospace Materials Specifications, and the Defense Department.
Entries for metals and alloys include their Unified Number Systems (UNS) designations, their chemical compositions and a cross-reference to other national specification systems.
The reference volume is available in soft cover book or on CD-ROM. The book costs $149 for delivery in North America, while the CD-ROM disc costs $199.