May 29th, 2009 in Copper, Industry Related, Metal Trends | No Comments »
Metal prices closed higher yesterday following a sharp rally in the price of crude oil; near $66 bbl. The dollar also weakened adding to the commodity movement. Economic data out of the US was mixed yesterday as Durable Goods order rose a nice 1.9% in April, but prior numbers were revised down. New Weekly Jobless claims data did not surprise, but continuing claims rose; an indicator of how quickly the unemployed are finding jobs or rather not finding jobs.
China’s economy is expected to expand by 7.5% this year up from a 1st Qtr of 6.1%. It appears China’s massive stimulus plan is having some positive effects. Its stimulus strategy is much different than the US with their plan being front-loaded. Thus the near term positive effects are not unexpected. As for the long term.. time will tell.
As of this writing, the author of this blog continues to look in vain for the ‘green shoots of recovery’ spoken of by Fed Chairman Bernanke in the labor and housing sectors. Still, it seems we have pulled out of the economic dive we were in…for now we seem to be ’skimming the treetops.’ No room for error as companies endeavor to avoid a financial crash. I would really like to get some room…altitude between me and the ground right now. Also known to some as a recovery.
Initial opening numbers in the metal markets indicate a gentle nudge higher today. Stay current by visiting our website @ www.abcmetals.com.
May 27th, 2009 in Uncategorized | No Comments »
Inside Indiana Business- an online business Journal is reporting today that GM and the UAW have reached an agreement that is expected to result in GM assuming ownership og Delphi Electronics & Safety in Kokomo.
Delphi continues to mute it response regarding what plants GM is interested in purchasing. While this would be good news for Indiana; one still wonders what will remain of Delphi after June 1st.
ABC Metals as a copper and brass flat-rolled supplier remains keenly interested in the financial health and future of the US automotive supply base.
May 27th, 2009 in Auto Parts Supplier, Bankruptcy, Industry Related | No Comments »
According to court papers filed Wednesday May 21st, Delphi said it would delay until May 29th for a third time a court hearing on modifications to its reorganization plan. This move places Delphi’s own plans for reorganization closer to GM’s government mandated deadline of June 1st to restructure or file for bankruptcy.
A recent article in the online journal ‘RubberNews.com’ reported Delphi posted a $534 million operating loss for the 1st Qtr of 2009 and Delphi warned that North American vehicle production cuts may force it to liquidate. Lower production demand means Delphi cannot guarantee it will have access to DIP financing or stay compliant with current terms of its bankruptcy financing.
Interestingly Bloomburg.com noted on 5/21/09 that the US Government has said it has the right to block GM from contributing further to Delphi. http://www.bloomberg.com/apps/news?pid=20670001&sid=ar76BQD2FD9Y
Delphi is quoted in RubberNews.com as stating, “If we cannot remain in compliance…our lenders…may seek to foreclose upon substantially all of our assests and proceed toward a sale or liquidation.” These comments can only stike fear in the hearts of Delphi Suppliers; who are already reeling in this current economic downturn.
It appears that the future of an American Icon will be known shortly.
May 15th, 2009 in Auto Parts Supplier, Industry Related | No Comments »
The e-newsletter ‘Inside Indiana Business’ reported this past Wednesday that a company considering to purchase Sumco has let its exclusivity agreement expire. It appears that Sumco; a major supplier of electroplating to the Automotive sector will continue to operate … at least through the end of this month.
With the shudown of production at many Chrysler facilities, a ‘9 Week’ shutdown at approx 13 GM plants, reduced or severely curtailed production at the ‘New Domestics’ like Toyota and Honda; the automotive sector is very fragile right now. We will continue to ‘blog’ regarding what we believe to be newsworthy items- keeping you posted by staying connected.
http://www.insideindianabusiness.com/newsitem.asp?id=35564
May 6th, 2009 in Copper, Metal Trends | No Comments »
Copper futures moved upward 5% or 10 cents to $2.19/lb on the Comex division of the NYME. This surge followed positive economic news released today- ADP released figures indicating US employment fell by just under 500,000 jobs- the lowest decline in 6 months. Additionally mortgage applications grew by 2%. It seems that the overall economic sentiment might be turning in a more positive direction; even on the heels of GM’s announcement to idle most of their assembly plants for up to 11 weeks this summer. Still, Gold’s climb is leading to some concerns regarding inflationary fears; we will watch and see.
Scrap remains tight as China continues to purchase scrap at a near term premium.
http://www.marketwatch.com/news/story/story.aspx?guid=%7BEE26A69E%2D7080%2D4401%2D95E8%2D4A765DD0617E%7D&siteid=rss
