British Steel at risk of running out of materials

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British Steel is at risk of running out of raw materials within weeks, raising fears over the company’s future.

The government is considering nationalising the steel company which has said its two main furnaces are “no longer financially sustainable”, prompting fears the some 2,700 jobs could be lost.

Simon Boyd, managing director of REIDsteel, a British Steel customer, told the BBC that government intervention was the “only solution if we want to keep steel making in the UK”.

He said the firm’s Chinese-owner Jingye only has “days left to secure the order of materials to prevent the forced closure of the blast furnaces over the next month”.

https://www.bbc.co.uk/news/articles/cgrggwxzd2jo

Trade war escalates as Trump metal tariffs take effect

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Tariffs imposed by US President Donald Trump on imports of steel and aluminium have taken effect in a move that will likely escalate tensions with some of America’s largest trading partners.

https://www.bbc.co.uk/news/articles/cx2r3md0j84o

War in Ukraine sends steel prices skyrocketing again

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The invasion of Ukraine means steel buyers will have to wrestle with even more pricing volatility in the coming months.

 

https://www.thefabricator.com/thefabricator/blog/metalsmaterials/war-in-ukraine-sends-steel-prices-skyrocketing-again

Liberty Steel cash injection to save 660 jobs

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Liberty Steel has secured a £50m cash injection which it says will safeguard 660 jobs at its plant in Rotherham.

The deal is part of a wider restructure of GFG Alliance, Liberty’s owner, which was forced to seek funding when its key lender, Greensill Capital, collapsed.

GFG said the cash injection would allow Liberty Steel (LSUK) to restart its electric arc furnace at Rotherham.

“Production ramp-up will commence in October 2021 with a plan to reach 50,000 tonnes per month as soon as possible,” it added.

“The restart of operations will enable colleagues to return to work, setting the platform for LSUK’s longer-term refinancing and delivery of its plan to expand Rotherham’s capacity, creating a two million tonnes per annum green steel plant.”

 

https://www.bbc.co.uk/news/business-58863751

UK PM Boris Johnson Hopeful for Liberty Steel Future

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British Prime Minister, Boris Johnson is very hopeful that the plants could be saved. Speaking on a visit to Middlesbrough, he said “I think British steel is a very important national asset. I think the fact that we make steel in this country is of strategic long-term importance. We have learned during the pandemic that it is not a good idea to be excessively reliant in times of trouble on imports of critical things. It would be crazy if we were not to use this post-Brexit moment not to use the flexibility we have to buy British steel. So that’s want we want to do.”

He said the government’s infrastructure plans including wind farms, railways, and nuclear power stations would all need steel.

Mr Johnson signaled the government could unveil lucrative contracts to benefit Liberty.

The British government has rejected an appeal by Liberty’s parent company, GFG Alliance, for a GBP 170 million bailout amid concerns its opaque structures meant the funds could disappear into its international operations.

Stelstocks Prepare for Brexit Custom Delays

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As the UK’s Brexit preparations reach new heights of chaos, a survey has revealed that companies are ill-prepared for the new customs regime, which begins in January. Two-thirds of large businesses are very, or extremely, concerned about delays in their supply chain post-Brexit.

With delays at the ports inevitable, Stelstocks has already put plans into action to counteract this and stay one step ahead of the curve.

Over the last month we have more than doubled our usual number of deliveries from Europe, which has significantly increased our stock levels across the board.

We know just how important continuity of supply is for our customers, as they can ill afford to have their machines stopped causing breaks in their schedules. Therefore, we strongly believe our increased stock levels, combined with our flexible delivery arrangements, will enable our customers to maintain their production rates over what is likely to be a turbulent period.

If Stelstocks could help with your material supplies over the coming months and beyond, please don’t hesitate to contact us. We’d be delighted to discuss your specific requirements in more detail.

 

What is the COVID-19 pandemic impact on the auto industry?

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Automotive COVID-19 Recovery Series: The OEM Landscape

 

The COVID-19 pandemic impact on the auto industry is extensive, severe, and wide-ranging:

    • Recovery in China is underway as sales continue to improve and dealer inventory declines. Government incentives including plate quota, NEV subsidy, and scrappage incentives help the industry regain momentum
    • Europe’s recovery has varied—Spain bottomed out in May, though France had an early rebound in June, and Germany followed in July. With economies re-opened and manufacturing restarting, the focus has shifted to financial conditions and consumer sentiment, with various automotive-focused stimulus packages starting in July.
    • US recovery (the subject of this component of the COVID-19 Recovery Series) has been led by the Pickup segment—it has gained 5.5 percentage points of market share, a highly profitable segment dominated by domestic manufacturers.

The first installment of IHS Markit’s new Automotive COVID-19 Recovery Series is now available. In our whitepaper, The OEM Landscape, we look at constrained and increasingly competitive market conditions, and lay out where are the greatest opportunities to maximize success are in the short-term. This whitepaper is one of three whitepapers produced for our COVID-19 Recovery Series.

 

https://ihsmarkit.com/research-analysis/automotive-covid19-recovery-series-the-oem-landscape.html

Manufacturing our Road to Recovery : The 3 Point Plan

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The Covid-19 pandemic is a humanitarian crisis that continues to take a tragic toll on people’s lives, however, the outbreak is at risk of turning into an economic crisis also.

Factories around the world have been forced to close or run on reduced hours, causing mass disruption to global supply  chains. Manufacturing output in the UK has fallen sharply, with some reducing production while others have shifted to producing much needed medicines, sanitizers, ventilators, Personal Protective Equipment (PPE) and other equipment  for the health service to combat the spread of the disease.

All the indications at the moment are that, even if a gradual easing of lockdown begins soon, the impact of this shock will continue to hit companies and livelihoods for some time to come. Different parts of the economy will recover at different speeds, with export demands, consumer tastes and business models changing.  This unprecedented economic challenge is forcing CEOs to contemplate difficult choices. Some are pulling in, making cuts, and focusing on surviving the storm. Others, however, are taking decisive action to put in place reforms so that when the crisis ends, they can come back stronger.

This paper sets out our 3 point plan:

  1. Boost economic confidence
  2. Ensure a safe return to work
  3. Build resilience

It includes a series of policies to support the manufacturing sector, stimulate recovery and help place the UK economy in the best position to deliver a digital, global and green future.

 

https://www.makeuk.org/insights/publications/manufacturing-our-road-to-recovery

British Steel’s rescue deal at a glance

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British Steel is on the verge of completing a £70m rescue deal with Chinese industrial firm the Jingye Group.

The bailout could save more than 4,000 jobs at the struggling steel producer, and up to 20,000 additional posts in its supply chain, according to Sky News.

 

https://www.theweek.co.uk/104268/british-steel-s-rescue-deal-at-a-glance?_mout=1&utm_campaign=theweekdaily_newsletter&utm_medium=email&utm_source=newsletter

A healthy economy needs a healthy steel industry providing employment and driving growth.

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Steel is everywhere in our lives for a reason. Steel is the great collaborator, working together with all other materials to advance growth and development. Steel is the foundation of the last 100 years of progress. Steel will be equally fundamental to meeting the challenges of the next 100.

Key facts:

  • Average world steel use per capita has steadily increased from 150kg in 2001 to 214.5kg in 2017, making the world more prosperous.
  • Steel is used in every important industry; energy, construction, automotive and transportation, infrastructure, packaging and machinery.
  • By 2050, steel use is projected to increase to be 1.5 times higher than present levels in order to meet the needs of our growing population.
  • Skyscrapers are made possible by steel. The housing and construction sector is the largest consumer of steel today, using more than 50% of steel produced.

 

https://www.worldsteel.org/about-steel/steel-industry-key-messages/healthy-economy.html