Navigate the Global EconomyTM
SIS International Research, February 2008:
STEEL
U.S. steel mills produced 14.66 million tons of steel as of January 2008, up from 13.64 million tons during the comparable 2007 period. According to the American Iron and Steel Institute, the Northwest Indiana/Chicago area, considered as the country’s second-largest steel producing region has turned out about 523,000 tons of steel during the week of February 16. The said figure is higher by 8,000 tons as compared to the production during the previous week. On the other hand, steel production in the country’s largest steel producing region, the Southern District, was at 681,000 tons for the same period.
Statistics for national steel production of domestic mills reveal that production during the first half of February 2008 is at 2.14 million tons, up by 0.8 percent from figures of last year. In addition, the country’s steel mills operated at 89.9 percent capacity during the week of February 16.
On the other hand, according to Census Bureau data, the US imported a total of 2,280,000 net tons (NT) of steel in November 2007, which includes a total of 1,922,000 NT of finished steel. Data show that the country’s overall imports year-to-date (YTD) decreased compared to figures from 2006. Total and finished steel imports YTD, however, remained up by six and eight percent, respectively, on an annualized basis against 2005 figures. Therefore, the country’s import levels of steel remained high.
The following are the finished steel products that increased in November 2007 as compared to previous month’s figure:
¬ oil country goods, up by 46 percent
¬ bars-light shapes finished, up by 40 percent
¬ hot rolled sheets, up by 38 percent
China is the main importer of pipe and tube products from January to December 2007, accounting for 33 percent of total imports.
ALUMINUM
Accounting for 16 percent of the global supply, the US aluminum industry in 2008, is expected to benefit from the strong growth of the consumer electronics market. Recycling, making lightweight and durable metals are expected to push the growth of the aluminum industry.
Global demand for aluminum this year is projected to increase by 9.6 percent to 41.7 million tons, with China topping the consumption at 14.9 million tons, and the US coming next at 6.8 million tons.
The US aluminum industry, however, will face challenges due to cost structure, especially in the sectors of energy and industries.
Price forecasts of industry experts reveal aluminum prices will average at USD 1.22/lb this year and USD 1.25/lb in 2009 due to increasing power costs and higher productions expenses in China. In addition, the weakening US dollar and strengthening Chinese Yuan is expected to greatly contribute to the price curves of the metal. In addition, because of the strong economic growth in China, fueled by its domestic growth, recession in the US will not have any significant impact in the Chinese market’s demand for aluminum and other metals. Demand coming from China will continue to be strong even with the end of Olympics-related construction, with the country preparing for the Shanghai expo that is expected to keep demand on the strong side. Moreover, the demand coming from China, according to industry players such as Rio Tinto, will benefit aluminum companies in the US.
The following table presents a comparison between the domestic and overseas aluminum fabrication industries in China against the rest of the world.
Furthermore, emerging economies such that of India and Brazil, are expected to offset any decrease in demand from other countries. The construction boom on roads, bridges, house and factories in said countries will contribute in keeping the US aluminum industry on the upturn.
The Cable Market
A cable harness, also known as a wire harness or wiring loom, refers to a system of cables of different lengths, conductor thickness etc. attached to appropriate connectors, clamps, couplers and other components. The main usage is in automobiles (cars, trucks, 2 wheelers, etc.) These are combined into a package which can be easily handled for mass production by end-users., is a string of cables and/or wires which transmit informational signals or operating currents (energy). The cables are bound together by clamps, cable ties, sleeves, electrical tape, conduit, a weave of extruded string, or made of a combination.
Commonly utilized in automobiles, as well as construction machinery, modern-day wire harnesses provide several advantages over loose wires and cables. For example, many automobiles contain many masses of wires which would stretch over several kilometers if fully extended. By binding the many wires and cables into a cable/wire harness, the wires and cables can be better secured against the adverse effects of vibrations, abrasions, and moisture.
Largely copper wires are used in automotive electrical applications but due to steep price increase of copper, the usage of aluminum wires has become prevalent. It has advantages over the older copper wire as it is lighter, more flexible, and less expensive. Aluminum wire in power grid applications was very successful and is still used today paving the way for its usage in other electronic/electrical applications.
Wiring harness manufacturers work closely with the automotive manufacturers to design & develop a harness system in line with the vehicle model requirement. Hence suppliers for the same do not change frequently.
The Wiring Harness Market
According to Bishop Associates, The merchant market for wire harness and cable assembly shipments in 2005 was valued at $30.66 billion. Harness assemblies represent the largest category of cable shipments at $19.2 billion. Included in this category are high-volume, high-value automotive harnesses, appliance harnesses and simple connectorized pigtails. The automotive harness industry is the largest end-use sector for cable assemblies with a value of $9.98 billion in 2005 shipments. The forecast for 2010 is $13.93 billion, representing a 5-year CAGR of 6.9 percent.
The automotive harness industry is in the process of change. High structural costs and labor rates in the developed regions are forcing regional manufacturing shifts. At the same time the electronic content of vehicles continues to increase. There are a growing number of RF applications. Hybrid electric vehicles (HEVs) are introducing new high-voltage, high-power interconnection applications.
As hybrid vehicles make tough demands on EEDS, these have significant effects upon the architecture. About 50% of electrical and electronic comfort and convenience features that are available in a modern car today were simply not around ten years ago. Features like multimedia systems, telephones, rear seat entertainment, remote keyless entry and tyre pressure monitoring systems all consume more energy.
During the 1960s, an average vehicle electrical system contained about 200 meters of cable. Today, this amounts to about one mile.
© 2000 - 2008. SIS International, Inc. All Rights Reserved. Disclaimer: Views & opinions are solely those of the contributors and do not necessarily reflect SIS International Inc.'s opinions, views and methodologies. Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.
SIS Market Intelligences - “Steel and Aluminum ”
