SJF Material Handling Blog

Monday, 29 Jun 2009

Industry leaders said that global steel producers are cautiously increasing production, albeit from extremely low levels, as signs emerge of modestly improving demand and recovering investor confidence.

Mr LN Mittal CEO of ArcelorMittal SA, while speaking to participants at American Metal Market’s Steel Survival Strategies conference in New York City, said that he has been seeing green shoots of stronger demand. He added that “Chinese steel demand is now forecast to show growth this year compared with a previously expected decline. The de stocking period has led to historically low levels of inventory, for example here in the United States, where inventories are at their lowest since 1983.”

After Mr Mittal’s remarks, Mr John P Surma head of United States Steel Corporation indicated the likelihood that at least one blast furnace will be restarted at the company’s mill in Granite City. He said that “Market conditions have improved a bit lately.”

Mr Surma said cited General Motors Corporation’s move to discontinue several unprofitable brands, Chrysler LLC reportedly being near an end of its bankruptcy process, labor concessions for both companies and an expected uptick in sales from the recently passed cash for clunkers bill. He said that “We’re encouraged that there is some stability is returning to the domestic auto industry. We’re very excited about what’s happening with GM.”

Both Mr Mittal and Mr Surma also noted their companies’ recent success in raising funds. Mr Surma said that US Steel’s public offering of common stock and senior convertible notes raised nearly USD 1.5 billion. He added that “Maybe the capital markets are sensing that the worst is behind us.”

(Sourced from Associated Press)

As Appears on Forbes.com

NEW YORK, June 9 (Reuters) - Shares of some major U.S. steel companies rose on Tuesday and analysts attributed it to rising prices for the flat-rolled steel products made by those manufacturers.

In afternoon trading on the New York Stock Exchange, AK Steel Holdings’ stock was 8.7 percent higher at $18.93, while U.S. Steel Corp rose 5.7 percent to $37.08.

Other steel company stocks were almost flat, although Steel Dynamics was up 3.7 percent on the Nasdaq. The Dow Jones Iron and Steel Index was 3.7 percent higher.

Analyst Michelle Applebaum of Steel Market Intelligence in Chicago said her latest indicator of global flat-rolled steel prices showed they were at their highest level since last June.

‘They (AK Steel and U.S. Steel) are the biggest flat-rolled players and flat-rolled prices globally are on the way up.’

Applebaum’s Advance/Decliner Index, which tracks the ratio between price increases and decreases, was at 77 percent last week. A reading above 50 percent means there are more increases than decreases and generally bodes well for pricing trends, she said.

Steel prices had been falling since last September, as the economic downturn dried up demand for steel and most manufacturers cut production by more than half.

(Reporting by Steve James, editing by Matthew Lewis) Keywords: STEEL/SHARES

(steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net)

In a widely anticipated move, antidumping and countervailing duty petitions against imports of Chinese OCTG have been filed with the US government. Seven US pipe producers and the United Steelworkers union (USW) filed the cases alleging that Chinese OCTG producers have been benefiting from enormous government subsidies - and that dumping margins range from 40% to 100%.

Source: Steel Business Briefing

SJF just published a shelving clip style guide for use by anybody needing to identify popular shelving clip styles.  The shelving clip guide makes a good compliment to our already widely used and very popular rack style guide.  This guide features pictures of many major brands of shelf clips including Borroughs, Edsal, Lyon, Penco, Republic and many more.

Please take a look at this new handy reference and let us know what you think with a comment below.

SJF’s very own Stafford Sterner recently penned an article for Material Handling Management Magazine.  This article gives you 7 real-world, useable tips for purchasing used material handling equipment.

Click Here (opens in a new window) to read the article on the MHM Website, and Leave a comment here if you enjoyed the article.  Let us know what you think.

Over the past week, the Chinese scrap market saw a slight rising trend, with a further ascension expected in the coming period against the tight availability of scrap supply. However, the relatively soft performance lately observed in the finished steel market is likely to exert a significant impact on the scrap market

Source: SteelOrbis Shanghai  - For the latest in steel news & trends subscribe to SteelOrbis News at http://www.steelorbis.com

With US shredded scrap prices dropping by up to  $30/long ton this month, there is a very good chance that US rebar prices will fall right along with them.
Given the ongoing weak demand in the US rebar market, it is quite likely that this time, domestic mills may opt to  lower rebar prices in step with the decreases in scrap.
eanwhile, Turkish mills are still pretty hungry for business and they are seeing falling scrap costs as well. However, if US prices do come down another notch as expected, Mexican rebar imports, along with imports from other sources, will most likely come down by at least as much in order to stay competitive with US material. Source: SteelOrbis  - - For the latest in steel news & trends subscribe to SteelOrbis News at http://www.steelorbis.com

NAPERVILLE, Ill.—Interlake Material Handling, a large long time  manufacturer of steel storage racks and a division of United Fixtures, has filed for Chapter 11 bankruptcy.

The news was reported by a  newspaper in Sumter, S.C. The newspaper quoted  a company manager who said the filing was a preemptive measure that would allow the company to restructure.

“This is not a liquidation,” Jones said. “The biggest advantage to us is that it allows us to restructure our debt. It will allow us to obtain working capital in order to continue our operations and put us in a better position to be acquired by another company.”

Although there is no word yet about a final deal, Interlake is reportedly in talks with a potential buyer. “We have a buyer with a very strong balance sheet,” said Jones. “The sale has not been finalized yet, however.”

Jones also said the bankruptcy will not lead to a closure of the Sumter plant and predicted a bright future for Interlake in Sumter, S.C.

“This is a very positive thing for us,” he says. “If bankruptcy can be seen in a positive light, this definitely is. And, while I can’t speak for the future, especially if the company is purchased, at this time, we have no plans for further reductions in personnel.”

Yesterday, the bankruptcy court entered an order approving bidding procedures for substantially all of the assets of Interlake Material Handling, Inc. and its affiliates.  The court also approved the proposed break-up fee and expense reimbursement for the stalking horse bidders for the assets, Mecalux USA, Inc. and Mecalux Mexico S.A. de C.V., which would be paid in the event that those parties are not the winning bidders for the assets at the conclusion of the bidding process.

The order attaches the approved procedures for other parties to provide competing bids for the assets.  In the event that qualified competing bids are received, an auction is scheduled to be held on March 4, 2009 in Wilmington, Delaware.  Source: netDockets Corporate Restructuring and Bankruptcy Blog

02-10-2009  Press Release:

SJF Automation Development Team announces beta release of Chameleon Carousel Controls for Dual Carousel Control System.  The new dual control system provides  the client the ability to control 2 carousels with 1 Chameleon controller. Single system clients of Chameleon can  upgrade to this option simply  by having the clients return single system controllers and touch screens to SJF be upgraded to the new Dual program and Screen set. In addition to the softwware upgrade,  a new Input module will replace  the customers existing input module. More details and contact information can be found by contacting  Dave Milan at SJF Solutions Developement via phone at  630-258-0011 or by going to  http://www.sjf.com/controls/carousel_controls.html