SEOUL (Reuters) - A collapse in steel demand from the ailing auto sector may be foremost on steelmakers' minds at the moment, but rising government fuel standards are the greater cause for alarm as aluminum and magnesium steal market share.
While the auto industry consumes only about 6 percent of the world's crude steel production, mills have long counted on steady growth in car sales to generate new business -- growth that may now be in doubt as aluminum and other super-light materials replace steel to help meet tougher environmental regulations.
The threat became more apparent this week as U.S. President Barack Obama introduced the most aggressive proposal yet to boost U.S. auto fuel economy standards, which would encourage automakers to invest in fuel-saving technology.
Under the new standards, U.S. passenger vehicles and light trucks must raise fuel efficiency by 5 percent yearly to an average 35.5 miles per gallon by 2016. The current law requires a similar gain by 2020.
"To achieve weight-saving and improve fuel efficiency, it's inevitable to replace steel to lighter materials, as steel accounts for around 50-60 percent of total vehicle weight," said Han Do-suck, principal researcher of South Korea's Hyundai Motor's (005380.KS) materials research team.
"We are open to all possibilities and new technologies but any dramatic and immediate change is unlikely, mainly because of cost issues."
The incentives are clear: fuel efficiency usually rises by 5-10 percent for every 10 percent reduction in vehicle weight, and per-vehicle steel consumption is well over 1 tonne.
That can be a big blow to already reeling steelmakers, such as Nippon Steel (5401.T), POSCO (005490.KS) and AK Steel (AKS.N), which count auto firms as a major client and face reduced demand as auto output falls by as much as 20 percent this year.
Already automakers are increasingly stripping off sheets of steel in favor of lighter and more stylish materials, such as aluminum, magnesium, titanium, plastics and carbon fiber.
The Mazda2 subcompact, for example, reduced weight by almost 100 kg from its predecessor by using lightweight and thinner ultra-tensile steel, altering the electrics, suspension and exhaust, and even by changing door speakers to save weight.
Aluminum LEADS, COST STILL CONCERN
The substitution has been led by aluminum, which can halve weight of vehicle body frames, thus dramatically reducing emissions of carbon dioxide blamed for global warming.
A survey by research firm Ducker Worldwide showed that per-vehicle aluminum content in North America would rise to 376 pounds by 2020, or 10.4 percent of total vehicle weight, from an estimated 8.6 percent this year.
Aluminum, which is as stiff as steel but weighs one third as much, has been developed for around two decades for use in autos but its high price and relatively complicated processing structure have prevented its use for the whole auto-body frame.
"Aluminum is some three to four times more expensive than steel per volume, and as a relatively less standardized and commoditized processing tool it costs a lot more to process the metal for auto use," said Kim Hyung-wook, a chief researcher at Korea Institute of Materials Science.
http://www.reuters.com/article/reutersEdge/idUSTRE54L13Y20090522
Saturday, May 23, 2009
Sunday, May 17, 2009
Martin introduce carriage house doors in aluminum
Martin carriage house doors in aluminum offer almost all of the features of wood, without any of the heavy maintenance or the safety liabilities.
The aluminum doors feature Martin's patented FingerShield joint design as well as over 30 safety and quality items that are standard with each Martin Door.
"This door is the best in its class.
In fact, the Carriage House Collection Aluminum Doors are in a class all their own," David Martin, chairman of MDM, said of the door.
The doors will come in over 70 powder coat colors and include 1/4" thick antique hinges and handles in black or silver.
The doors are only available with a powder coat finish.
The door is almost maintenance free, according to Martin, because of the aluminum and powder coating.
The door comes with a lifetime warranty with few limitations.
Even the door's hardware lasts long on the super strong door because of its lightweight aluminum, according to Martin.
The door features a true 3-D design, he added.
The benefits of the new carriage house look to traditional wood doors are obvious.
"Experience has shown that wood warps, cracks and splits," Martin said.
"Wood has a short warranty and does not last long.
Steel also does not last as long as aluminum.
Hardware usually wears out faster on heavier doors".
The new aluminum door is also environmentally friendly, because it offers the charm and appeal of a carriage house look, without cutting down any trees.
See the website for more details.
http://www.buildingtalk.com/news/amw/amw100.html
The aluminum doors feature Martin's patented FingerShield joint design as well as over 30 safety and quality items that are standard with each Martin Door.
"This door is the best in its class.
In fact, the Carriage House Collection Aluminum Doors are in a class all their own," David Martin, chairman of MDM, said of the door.
The doors will come in over 70 powder coat colors and include 1/4" thick antique hinges and handles in black or silver.
The doors are only available with a powder coat finish.
The door is almost maintenance free, according to Martin, because of the aluminum and powder coating.
The door comes with a lifetime warranty with few limitations.
Even the door's hardware lasts long on the super strong door because of its lightweight aluminum, according to Martin.
The door features a true 3-D design, he added.
The benefits of the new carriage house look to traditional wood doors are obvious.
"Experience has shown that wood warps, cracks and splits," Martin said.
"Wood has a short warranty and does not last long.
Steel also does not last as long as aluminum.
Hardware usually wears out faster on heavier doors".
The new aluminum door is also environmentally friendly, because it offers the charm and appeal of a carriage house look, without cutting down any trees.
See the website for more details.
http://www.buildingtalk.com/news/amw/amw100.html
Saturday, May 2, 2009
Century Aluminum (CENX) NewsBite - One of Today's Top Gainers
Century Aluminum (CENX) leads the list of top gainers so far today and is now at $5.43, up $1.39 (34.41%) on volume of 8,002,474 shares traded. Over the last 52 weeks the stock has ranged from a low of $1.04 to a high of $80.52. Century Aluminum stock has been showing support around $3.73 and resistance in the $4.31 range. Technical indicators for the stock are neutral and S&P does not currently have a STARS rating for CENX. If you are looking for a hedged play on CENX the stock seems like it could be a candidate for a September covered call above the 5 range. [ABR-Seven Summits Strategic Investments NewsBite]
http://www.marketintelligencecenter.com/articles/846576
http://www.marketintelligencecenter.com/articles/846576
Friday, April 24, 2009
Alcoa Transportation Products Wins 2009 Automotive News PACE Award
CLEVELAND, Apr 22, 2009 (BUSINESS WIRE) Alcoa Transportation Products was awarded a 2009 Automotive News PACE Award. The prestigious award recognizes automotive suppliers for superior innovation, technological advancement and business performance.
Transportation Products was recognized for its Alcoa Vacuum Die Casting (AVDC) for Lightweight Door Assemblies developed as an integrated casting alloy, process and equipment "systems solution" which provides vehicle manufacturers within the passenger auto and commercial transportation market segments the opportunity to maximize weight savings (30-35%), consolidate parts (60-70% BOM/parts reduction) and reduce system costs of lightweight door systems.
The patented AVDC process integrates dimensionally stable high strength and high ductility casting alloys and large die part size capability to expand the lightweight options for door inner panels beyond multiple piece stamped aluminum or steel sheet stampings. The innovation has been utilized by leading auto manufacturers, including most recently with Nissan on its high performance GT-R sports sedan.
During his acceptance speech, Kevin Kramer, President - Alcoa Wheel and Transportation Products stated, "We are honored to be recognized as a winner for this prestigious award. AVDC is our second win in the last three years and this is a big deal. The Automotive News PACE Award reinforces Alcoa's commitment that innovation is our past and our future."
The 15th annual PACE (Premier Automotive Suppliers' Contribution to Excellence) Award was presented by Automotive News, Ernst & Young LLP and the Transportation Research Center Inc. The competition was open to suppliers who contribute products, processes, materials or services directly to the manufacture of cars or trucks. The award is accepted around the world as the industry symbol of innovation. Alcoa Transportation Products was awarded in the Manufacturing Process and Capital Equipment category following an extensive review by an independent panel of judges including a comprehensive written application and a site visit.
Alcoa most recently was awarded an Automotive News PACE award for Dura-Bright(R) technology for forged aluminum wheels in 2007. This latest win is Alcoa's second award in as many attempts. For complete details of the Automotive News PACE Award, visit www.automotivenews.com/pace.
About Alcoa Wheel and Transportation Products
Alcoa Wheel and Transportation Products, headquartered in Cleveland, Ohio, serves the commercial vehicle, automotive, and defense markets with products used in a range of applications including cast and forged aluminum wheels, aluminum space frames, specialized vacuum die cast products, niche products such as Dura-Bright(R) and Dura-Flange(R) wheels and M-Series(TM) medium truck wheels, as well as a variety of other aluminum components for these markets. AWTP is composed of three divisions: Transportation Products, Commercial Vehicle Wheels, and Automotive Wheels. It employs 2,800 people at 30 locations worldwide.
About Alcoa
Alcoa (NYSE:AA) is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa(R) wheels, fastening systems, precision and investment castings, and building systems. The Company has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at www.alcoa.com.
http://www.tradingmarkets.com/.site/news/Stock%20News/2284925/
Friday, April 17, 2009
Mg content in 380/A380 aluminium alloys changed
The North American Die Casting Association has revised specifications by increasing the magnesium content to 0.30% from 0.10% for aluminum alloys 380 and A380.
The North American Die Casting Association (NADCA) has announced revised specifications increasing the magnesium content to 0.30% from 0.10% for aluminum alloys 380 and A380.
The increased level of magnesium will have a positive environmental effect by reducing the amount of chlorine used to control the magnesium level, while also slightly reducing the production cost for alloy producers.
Increased magnesium content in the alloy also improves the ability to machine cast parts.
"This change will provide significant environmental benefits while having no negative impact on properties or the ability of die casters to cast the alloys and a positive impact on the ability to machine alloys," said NADCA's president Daniel L Twarog.
"It will also make our standard consistent with those in some of the world's largest aluminum producing markets, which is an important consideration in today's global economy." Magnesium limits of 0.30% require approximately 40 to 50% less chlorine than alloys with 0.10% magnesium, depending upon the raw material being used.
Less chlorine, combined with less land-filling of magnesium chloride, could bring the cost of production down by one-quarter cent per pound.
While this is not a significant reduction in overall cost, it is an incremental step to lower costs for products made in the USA, improving domestic competitiveness with other countries.
Countries including Japan, China, Russia, Germany and the United Kingdom have had higher magnesium limits on their aluminum alloys for years.
The change in the specification was approved by the responsible NADCA technical committee and is widely supported by NADCA members.
The association is now working with the Aluminum Association to get it changed in the AA/ANSI standard and will subsequently work to get it changed in the ASTM specification.
* About NADCA - based in Wheeling, Illinois, the North American Die Casting Association (NADCA) represents the world's most effective die casters creating the world's best cast products.
Working with a North American die caster guarantees innovation, integrity, accessibility and reliability.
http://www.manufacturingtalk.com/news/noi/noi100.html
Wednesday, April 8, 2009
Alcoa posts quarterly loss on aluminum slump
NEW YORK (Reuters) - Aluminum producer Alcoa Inc (AA.N) reported a second consecutive quarterly loss on Tuesday, as metal prices and the autos industry slumped and global demand fell in the economic downturn.
In response to the tough times, Alcoa -- the first member of the Dow Jones Industrial Average .DJI to report -- has cut thousands of jobs, slashed its dividend, trimmed spending and raised $1.3 billion to help it through the slowdown.
"There's no doubt in my mind that we are in for a really nasty earnings season," said Keith Wirtz, president and chief investment officer of Fifth Third Asset Management. "Alcoa's second consecutive quarterly loss is testament to that. We are in the worse phase of this recession right now."
But on a conference call with Wall Street analysts, Alcoa Chief Executive Officer Klaus Kleinfeld was more upbeat, despite weakness in demand from industries it supplies.
"In the U.S., we are seeing the first signs of markets stabilizing at lower levels," he said.
Auto industry demand is down 18 percent globally and is worse in the United States, he said, "but the U.S. residential (construction) market might see some signs of bottoming out."
But Kleinfeld repeated his forecast that global aluminum consumption will decline 7 percent this year, although he is hopeful government stimulus action will revive metal demand.
Alcoa's first-quarter net loss was $497 million, or 61 cents per share, compared with a profit of $303 million, or 37 cents, in the 2008 quarter, the Pittsburgh-based company said. The loss from continuing operations was 59 cents per share.
Revenue fell 36 percent to $4.1 billion from $6.5 billion a year earlier after excluding divested businesses.
According to Reuters Estimates, the company actually lost 60 cents per share, excluding a write-off and gain from two transactions in the quarter. That missed analysts' estimate for a loss of 55 cents, Reuters Estimates said.
TRIMMING THEIR SAILS
Kleinfeld said in a press statement the steps the company has taken so far to cut costs should significantly improve its profitability and cash flow in 2009 and beyond.
"We also see both near-term and long-term catalysts that should improve the prospects for the aluminum industry," he said. "Current stimulus programs that target infrastructure and energy efficiency will create a demand for ... aluminum.
But Alcoa expects second-quarter alumina production to drop slightly as it cuts refinery production to meet smelter demand. Alumina, refined from bauxite, is smelted into aluminum.
The company also sees continued end market weakness for its flat-rolled products in the aerospace, construction and global transportation sectors in the second quarter.
http://www.reuters.com/article/ousiv/idUSTRE53649Y20090408
In response to the tough times, Alcoa -- the first member of the Dow Jones Industrial Average .DJI to report -- has cut thousands of jobs, slashed its dividend, trimmed spending and raised $1.3 billion to help it through the slowdown.
"There's no doubt in my mind that we are in for a really nasty earnings season," said Keith Wirtz, president and chief investment officer of Fifth Third Asset Management. "Alcoa's second consecutive quarterly loss is testament to that. We are in the worse phase of this recession right now."
But on a conference call with Wall Street analysts, Alcoa Chief Executive Officer Klaus Kleinfeld was more upbeat, despite weakness in demand from industries it supplies.
"In the U.S., we are seeing the first signs of markets stabilizing at lower levels," he said.
Auto industry demand is down 18 percent globally and is worse in the United States, he said, "but the U.S. residential (construction) market might see some signs of bottoming out."
But Kleinfeld repeated his forecast that global aluminum consumption will decline 7 percent this year, although he is hopeful government stimulus action will revive metal demand.
Alcoa's first-quarter net loss was $497 million, or 61 cents per share, compared with a profit of $303 million, or 37 cents, in the 2008 quarter, the Pittsburgh-based company said. The loss from continuing operations was 59 cents per share.
Revenue fell 36 percent to $4.1 billion from $6.5 billion a year earlier after excluding divested businesses.
According to Reuters Estimates, the company actually lost 60 cents per share, excluding a write-off and gain from two transactions in the quarter. That missed analysts' estimate for a loss of 55 cents, Reuters Estimates said.
TRIMMING THEIR SAILS
Kleinfeld said in a press statement the steps the company has taken so far to cut costs should significantly improve its profitability and cash flow in 2009 and beyond.
"We also see both near-term and long-term catalysts that should improve the prospects for the aluminum industry," he said. "Current stimulus programs that target infrastructure and energy efficiency will create a demand for ... aluminum.
But Alcoa expects second-quarter alumina production to drop slightly as it cuts refinery production to meet smelter demand. Alumina, refined from bauxite, is smelted into aluminum.
The company also sees continued end market weakness for its flat-rolled products in the aerospace, construction and global transportation sectors in the second quarter.
http://www.reuters.com/article/ousiv/idUSTRE53649Y20090408
Friday, April 3, 2009
Martin introduce carriage house doors in aluminum
Martin carriage house doors in aluminum offer almost all of the features of wood, without any of the heavy maintenance or the safety liabilities.
The aluminum doors feature Martin's patented FingerShield joint design as well as over 30 safety and quality items that are standard with each Martin Door.
"This door is the best in its class.
In fact, the Carriage House Collection Aluminum Doors are in a class all their own," David Martin, chairman of MDM, said of the door.
The doors will come in over 70 powder coat colors and include 1/4" thick antique hinges and handles in black or silver.
The doors are only available with a powder coat finish.
The door is almost maintenance free, according to Martin, because of the aluminum and powder coating.
The door comes with a lifetime warranty with few limitations.
Even the door's hardware lasts long on the super strong door because of its lightweight aluminum, according to Martin.
The door features a true 3-D design, he added.
The benefits of the new carriage house look to traditional wood doors are obvious.
"Experience has shown that wood warps, cracks and splits," Martin said.
"Wood has a short warranty and does not last long.
Steel also does not last as long as aluminum.
Hardware usually wears out faster on heavier doors".
The new aluminum door is also environmentally friendly, because it offers the charm and appeal of a carriage house look, without cutting down any trees.
http://www.buildingtalk.com/news/amw/amw100.html
The aluminum doors feature Martin's patented FingerShield joint design as well as over 30 safety and quality items that are standard with each Martin Door.
"This door is the best in its class.
In fact, the Carriage House Collection Aluminum Doors are in a class all their own," David Martin, chairman of MDM, said of the door.
The doors will come in over 70 powder coat colors and include 1/4" thick antique hinges and handles in black or silver.
The doors are only available with a powder coat finish.
The door is almost maintenance free, according to Martin, because of the aluminum and powder coating.
The door comes with a lifetime warranty with few limitations.
Even the door's hardware lasts long on the super strong door because of its lightweight aluminum, according to Martin.
The door features a true 3-D design, he added.
The benefits of the new carriage house look to traditional wood doors are obvious.
"Experience has shown that wood warps, cracks and splits," Martin said.
"Wood has a short warranty and does not last long.
Steel also does not last as long as aluminum.
Hardware usually wears out faster on heavier doors".
The new aluminum door is also environmentally friendly, because it offers the charm and appeal of a carriage house look, without cutting down any trees.
http://www.buildingtalk.com/news/amw/amw100.html
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