Nippon Steel plans additional output cuts after July

Spanish Market: Metals
08/05/20

A deteriorating demand outlook has forced Japanese steel maker Nippon Steel to plan additional steel output cuts after July, by bringing forward the closure of two blast furnaces (BFs) originally planned for later this year.

Nippon Steel plans to close the No. 2 BF at the Muroran works in the first half of July at the earliest, in a continued effort to address sluggish demand for steel materials. The company is bringing forward refurbishment work of the Muroran BF, which was originally planned for some time during the second half of 2020.

Nippon Steel also plans to bank, or take out of blast, the No. 2 BF at the Yawata works after early July. The company does not plan to resume the BF before its planned closure in September, under the firm's strategy to scrap 10pc of its 54mn t/yr crude steel output capacity over the next few years.

The planned closure of the two BFs will reduce Nippon Steel's operating capacity by 4mn t/yr. The company today confirmed it had shut the No. 1 BF at the Wakayama works on 25 April following the closure of the Kure No. 2 and Kashima No. 1 BFs respectively in February and April. The No. 2 BF at the Kimitsu works is also planned to be closed later this month in response to falling demand from the automobile and construction sectors.

Domestic demand for steel materials has taken a hard hit from the Covid-19 outbreak and related quarantine measures. The near-term outlook remains bleak with domestic car manufacturers planning additional output cuts throughout this month, and possibly in June. Sales of new passenger car sales in Japan dropped by 27pc on the year to 144,674 in April after they declined by 10pc in March, according to Japan Automobile Dealers Association.

Japanese crude steel output dropped by 13pc from a year earlier to 7.9mn t in March. March output brought the April 2019-March 2020 total to 98.4mn t, the lowest output since 96.4mn t in 2009-10 in the aftermath of the global financial crisis.

Japan's manufacturing activity faces a slow return after Japan yesterday allowed prefectures with limited new Covid-19 cases to ease quarantine restrictions. The government has urged 13 prefectures, including the country's main industrial and consumer areas of Tokyo, Osaka and Nagoya, to continue taking maximum precautionary measures as they accounted for more than 80pc of virus infections in Japan.

By Rieko Suda

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07/11/24

US W mining essential after Trump victory: ITIA

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EU minor metal markets await US reaction to Trump win

07/11/24

EU minor metal markets await US reaction to Trump win

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Boeing workers approve contract, end strike: Update

05/11/24

Boeing workers approve contract, end strike: Update

Includes additional contract details in 3rd and 4th grafs, and background on Boeing. Houston, 5 November (Argus) — Union-backed machinists approved a new labor contract with aircraft manufacturer Boeing, ending a seven-week work stoppage that halted production of major jet programs and disrupted aerospace supply chains. More than 32,000 factory workers represented by the International Association of Machinists and Aerospace Workers (IAMAW) voted by 59pc to ratify the deal, the local union said late Monday. Employees secured a general wage increase (GWI) of 38pc spread out over the contract's four-year life, a one-time $12,000 ratification bonus and greater 401(k) contributions, among other retirement and health care benefits. The pay raise — a sticking point in prior rounds of negotiations — improved upon Boeing's first two offers of 25pc and 35pc but fell short of the 40pc sought by workers. Still, the union touted that the GWI in the new contract amounts to 43.65pc when compounded. Boeing chief executive Kelly Ortberg acknowledged the past few months "have been difficult" in expressing his appreciation that both sides were able to come to terms. Workers began their strike on 13 September, effectively shutting down Boeing's final assembly lines in Renton and Everett, Washington, where the company produces its flagship 737 MAX aircraft, along with its 767 and 777 programs. That stoppage further exacerbated issues within Boeing's operations that have been under heightened scrutiny since January, when a midair panel blowout led to a mandated production cap on the 737 MAX. Additionally, parts shortages and other supply chain challenges have constrained output of the company's main widebody program, the 787 Dreamliner, this year. The strike itself compelled Boeing to initiate cost-cutting measures with the production halt weighing on its finances . The company on 11 October announced it would lay off 10pc of its total workforce, while confirming on 23 October that it had stopped shipments from certain suppliers to conserve cash. The latest estimate from Anderson Economic Group, which does not account for last week, puts Boeing's losses at $5.5bn and its suppliers' losses at $2.3bn because of the work stoppage. All workers must return to their positions by 12 November but can return as early as Wednesday, the union said. Still, Boeing cautioned that it would take time for operations to stabilize, saying it would have to retrain and recertify employees who did not "get enough time on an airplane" before they went on strike. The company also will have to contend with a supply chain that it "turned off in many cases" because of the work stoppage. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Boeing workers approve contract, end strike

05/11/24

Boeing workers approve contract, end strike

Houston, 5 November (Argus) — Union-backed machinists approved a new labor contract with aircraft manufacturer Boeing, ending a seven-week strike that halted production of major jet programs and disrupted aerospace supply chains. More than 32,000 factory workers represented by the International Association of Machinists and Aerospace Workers voted by 59pc to ratify the deal, the local union said late Monday. Employees secured a general wage increase of 38pc spread out over four years and a $12,000 ratification bonus, along with other retirement and health care benefits. All workers must return to their positions by 12 November but can return as early as Wednesday, the union said. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US railroad-labor contract talks heat up

04/11/24

US railroad-labor contract talks heat up

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