News Archive for September, 2006

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ARCHIVE FOR SEPTEMBER, 2006

Nickel Drives Stainless Scrap to Nearly $2,800/T

September 18th, 2006 / Nickel Foil

Prices for 18-8 stainless scrap flirted with $2,800 a ton on a delivered-to-mill basis in the Pittsburgh market this month before settling in a range of $2,750 to $2,775 a ton, scrap industry sources said. The more than $250 increase from the prevailing mill price in August was driven entirely by the steadily rising price of nickel on the London Metal Exchange.

Demand for stainless scrap in the U.S. market has been so strong this year that it could account for the decline in sales to overseas markets, particularly those in Asia. U.S. exports of 18-8 scrap through the first half of this year were off by 6.6 percent from the same period last year.

Domestic demand for finished stainless steel products remains strong, particularly for commodity grades like 304 stainless. The only market that could see some weakening because of the higher prices is construction, where some architectural applications are price sensitive and substitution of 400-series stainless is possible.

American Metal Market September 14, 2006

CDA Set to Register Antimicrobial Copper-Based Alloys With the EPA

September 13th, 2006 / Copper Foil/Sheet

The Copper Development Association (CDA) is preparing to submit an application to register antimicrobial copper alloys with the U.S. Environmental Protection Agency. The CDA research has shown that 99.9 percent of bacteria are killed within two hours of coming into contract with copper alloy surfaces in contrast to no reduction in the concentration of live organisms on stainless steel during a six-hour test period.

The bacteria tested include E. coli and Listeria monocytogenes, both food-borne pathogens associated with several large scale food recalls, and Methicillin Resistant Staphylococcus Aureus (MRSA), a hospital-acquired infection. The copper alloys tested include high coppers, brasses, bronzes, copper-nickels and copper-nickel-zincs. Because the research suggested the alloys could reduce the transmission of potentially infectious organisms, the CDA believes there could be a huge potential for use in areas such as health centers and hospitals with products such as door handles, bed poles, and stethoscopes.

The other uses of copper have been expanded to include fungicides, pesticides, antifouling paints, antimicrobial medicines, oral hygiene products, hygienic medical devices and antiseptics.

American Metal Market September 12, 2006

Nickel Premiums Steady As Buyers Sit It Out

September 12th, 2006 / Nickel Foil

US nickel premiums are holding steady due to sparse spot sales as buyers wait for prices to cool off. Premiums for melting-grade nickel are holding at between 42 and 47 cents a pound. Several traders expected to see higher prices after Labor Day as buyers returned from summer holidays, but the market has yet to see a hike. Nickel activity has been slower than normal in the spot market as buyers sit on the sidelines and await lower prices before committing to purchases. These buyers are waiting for prices to fall in line with an anticipated stainless steel decline. A handful of traders expect premiums to remain strong for another couple of weeks. However, stocks flowing into the London Metal Exchange suggest that nickel might soften in the near future.

American Metal Market September 7, 2006

ATI Charges Fail to Cool Hot Market For Stainless

September 7th, 2006 / Stainless Steel

Stainless steel flat product demand shows no sign of abating, despite substantial surcharge increases to be implemented in October. Allegheny Technologies Inc. (ATI) of Pittsburgh was the first of North America’s three main stainless steel producers to issue its October surcharge list. ATI has set its Type 304 stainless surcharge at $1.2571 a pound, up 14.8 percent in September; Type 316 at $2.1077 a pound, up 14.1 percent; and Type 321 at $1.4219 a pound, up 14.9 percent. The increases reflect the high price of nickel throughout August, the month against which the October surcharges are calculated. Currently, the average monthly price for nickel is at $13.94 a pound, up from $12.44 a pound during August. Demand is strong across all markets but especially in the energy market, sources said. “Demand’s decent and better than last year,” a Midwest buyer said. “Anything stainless for energy – pipe, tubing, tanks for storage, production, drilling or distillation – that whole ethanol and energy thing is hotter than anything.” The events have created a “perfect storm,” to the benefit of producing mills, he added. “I don’t know anyone who thought that at the beginning of the year prices would get where they are. The tight supply and strong demand have caused the increases.” North American mill lead times stretch into November, depending on the product, and those in Europe are out until December, sources said.

American Metal Market September 6, 2006

Novelis Plans to Sell, Close Some European Operations to Cut Costs

September 7th, 2006 / Aluminum Foil/Sheet

Novelis Inc. is considering plans to sell its Foil and Technical Products division in Europe as part of a comprehensive restructuring program aimed at cutting costs. The struggling Atlanta-based aluminum rolled products company, will close its technology center in Neuhausen, Switzerland, and overhaul its central management and administration activities in Europe in an attempt to save up to $10 million per year. As many as 2,100 jobs could be at risk. The Foil and Technical Products division comprises three plants in Germany and one each in France, Luxembourg and Britain.

The company has been going through a restructuring process since last year in a bid to cut costs and generate profits. It sold an industrial site in Falkirk, Scotland, to Scottish Enterprise Forth Valley for $7.6 million in October 2005 and closed its rolled products plant in Flemalle, Belgium, and two packaging operations in Cruseilles, France, and Garbagnate, Italy, shortly afterwards. This year, it sold its rolling mill in Annecy, France, closed its Borgofranco secondary aluminum smelter in northern Italy and restructured foil operations in Germany.

American Metal Market September 1, 2006