Articles in Category: Logistics

My colleague, Jeff Yoders, referred last week to action taken by Alcoa, Inc. to challenge the Commodity Futures Trading Commission (CFTC) over its involvement in the London Metal Exchange’s (LME) upcoming rule changes.

Free Webinar: Are You Speculating When You Buy Spot Metals?

The LME is in the process of a long running review of it’s warehouse rules following industry criticism of the length of queues, particularly at it’s Detroit and Vlissingen (Netherlands) warehouses, a situation that was initially viewed as driving up physical delivery premiums. It has since been seen to be only part of a wider problem created by the stock and finance trade’s competition for physical metal.

Pile of aluminium bricks waiting for transport to the factory

Pile of aluminum ingots stuck in Detroit, even though its owners want to take delivery.

Queues have declined in nearly all locations but still remain at upward of a year in Detroit and Vlissingen, although Metro International and Pacorini, the warehouse operators at those locations, have taken steps to further limit intake while the LME’s deliberations are underway. Read more

At the Metalminer Week-In-Review, we promise to report accurate prices every day through our Indx. But what if that’s not enough? What about the add-ons, over-and-aboves and shipping charges? Buying steel? We’ve got bar fuel surcharges for eight US regions. Eight!

Free Webinar: Are You Speculating When You Buy Spot Metals?

We’ve been covering that pesky Midwest aluminum premium like Richard Sherman on a wideout, too. Want to know about anti-dumping and countervailing duties. You’ve come to the right place! All of these non-price inputs made our homepage this week as the gulf between the price and what you actually pay reared its head again this week.

Who Polices the Midwest Premium?

With falling London Metal Exchange aluminum prices and much-reduced physical delivery premiums even the combined, all-in price of aluminum is below cost for many smelters these days.

Pile of aluminium bricks waiting for transport to the factory

I’m aluminum, get me out of this warehouse!

That’s enough reason for smelters such as Alcoa, Inc., to question the involvement of the Commodities Futures Trading Commission in discussions with the LME on how best to reform their warehouse network and cut down the one-year-plus wait to get ingots out of the operations in Detroit (Metro International) and Vlissingen, Netherlands (Pacorini).

Higher premiums benefit producers such as Alcoa and UC Rusal, after all. Is it any wonder that producers want the CFTC to butt out? Yet, the CFTC still wants to butt in.

Don’t Let Your Profitability Drown in the VAT!

Meanwhile, over in China, rampant speculation is going on over how Beijing will replace its current business tax system with a new system of value-added taxes. A VAT taxes the difference between the sale price charged to a customer, minus the cost of materials and other taxable inputs.

container-ship-night-MMslider

Better pay the VAT or this is going to be a short trip!

The best estimates we have seen show that the new VAT will considerably increase what US buyers pay for metals from China and likely from nearby markets trying to compete with Chinese steel. China’s VAT is just one of many ways that imports could become more expensive later this year as… Read more

Using robots that can “draw” steel structures in 3D, Dutch technology firm MX3D is planning to 3D “print” a steel bridge over one of Amsterdam’s famous canals in the center of the Dutch Capital. MX3D researches and develops robotic 3D printing delivery technology as well as projects such as the pedestrian bridge. The robots creating the will actually be large welder robots usually seen in factories rather than construction sites.

Free Download: Latest Metal Price Trends in the June MMI Report

The project is a collaboration between MX3D, design software company Autodesk, construction company Heijmans and many others. Designing and “printing” the intricate, ornate metal bridge is a test for the robots, software engineers, craftsmen and designers working on it, including designer Joris Laarman Lab.

13 Visual of park_550

The planned steel pedestrian bridge in Amsterdam will be built by robot “welders” who 3D print the bridge from each side and meet in the middle. Image courtesy of Joris Laarman for MX3D.

“I strongly believe in the future of digital production and local production, in ‘the new craft,'” said Joris Laarman, principal of the Joris Laarman Lab. “This bridge will show how 3D printing finally enters the world of large-scale, functional objects and sustainable materials while allowing unprecedented freedom of form. The symbolism of the bridge is a beautiful metaphor to connect the technology of the future with the old city, in a way that brings out the best of both worlds.” Read more

Today in Metalcrawler, a major construction project in Washington will eventually require 33,000 tons of steel and a powerful lawmaker wants to tie the Highway Trust Fund to a trade bill.

Boeing 777X Plant Requires Giant Steel Trusses

About 33,000 tons of steel are needed to build the $1 billion Boeing 777X wing plant in Washington state. The building is 1,200 feet long and has two open spans of 420 feet wide and 460 feet wide.

Free Download: MetalMiner’s Top Service Centers Guide

To support those spans, 45-foot-deep steel girders are being used. At any moment 50 trucks are on the road bringing steel to the site from Oklahoma, Arkansas and Colorado.

The $1 billion, 1.3-million-square-foot building will be where Boeing fabricates carbon composite spars and skins for the 777X wings.

Pelosi Wants to Link Trade, Highway Bills

House Minority Leader Nancy Pelosi (D-Calif.) said Democrats would be more likely to support the controversial trade bill that was defeated on Friday if Republicans would support a long-term transportation funding package, the Hill reported.

Pelosi helped sink President Obama’s trade package in a Friday vote by announcing her opposition, but she also signaled she wants Republicans to consider a deal involving highway funding in a letter to her conference. The Highway Trust Fund was extended through the end of July recently but both parties have said they desire a long-term deal that will fund federal highway maintenance through at least the next five years.

Congress has been grappling with a shortfall in transportation spending that is estimated to be about $16 billion per year, and they have not passed an infrastructure package that lasts longer than two years since 2005.

Free Download: Latest Metal Price Trends in the June MMI Report

A major aluminum producer challenged a US regulator’s authority to intervene in a foreign warehousing dispute and another nation placed tariffs on Chinese silicon this week.

Alcoa Challenges CFTC’s Authority

Alcoa Inc. on Monday challenged a federal commodities regulator’s authority to intervene in the contentious overhaul of the London Metal Exchange‘s warehouse policy that has caused an unprecedented drop in aluminum prices.

FREE Download: Last Chance for the May MMI® Report.

In March, the Commodity Futures Trading Commission deferred a decision about the LME’s 2012 application to be registered as a “foreign board of trade,” telling the exchange it should do more to address concerns about long waiting queues.

Alcoa has questioned whether the agency even has the legal authority to intervene, and on Monday filed a request under the Freedom of Information Act (FOIA) to find out what had caused the CFTC to delay its decision on the LME.

“Our goal is to learn the extent to which the CFTC has engaged in substantive discussions with the London Metal Exchange,” Alcoa said in a statement. “The CFTC should examine any LME aluminum contract performance issues only through an open, inclusive and transparent process where all affected market participants have the opportunity to present their views,” it said.

The CFTC declined to comment.

Australia Puts Tariffs on Chinese Silicon

Australia has issued an anti-dumping notice on silicon metal exported from China after an investigation into dumping and subsidization.

Following the investigation the Australian Government Anti-Dumping Commission set dumping and subsidy margins for Hua’an Linan Silicon Industry Co. Ltd., and Guizhou Liping Linan Silicon Industry Co. Ltd. at 18.3% and 6.3% respectively. Both companies will be subject to an effective rate of combined interim countervailing duty and interim dumping duty of 12%, according to a statement by the MOC trade remedy and investigation bureau.

The commission announced dumping margin and subsidy margin for “uncooperative, and all other exporters” of 27% and 37.6% respectively, with an effective rate of combined interim countervailing duty and interim dumping duty of 58.3%.

Australia began its investigation in February last year after allegations of dumping and subsidization of silicon metal goods that originated from China with a total value of $12.78 million dollars, according to the MOC statement.

Free Download: MetalMiner’s Top Service Centers Guide

When pharmaceutical manufacturer Biogen Idec planned a new headquarters building in Boston’s growing Kendall Square tech center, they knew the construction and program needs of the 325,000-square foot, five-story project would be a challenge for the architects, engineers and general contractor selected.

Why Manufacturers Need to Ditch Purchase Price Variance

Cambridge, the suburban Boston municipality Kendall Square is located in, had a zoning requirement that all projects stay under 75 feet. That meant architect Spagnolo, Gisness and Associates had to cut its original plan for a six-story building down to five stories.

225binneystreet_550

Biogen Global Headquarters, 225 Binney St., Cambridge. Mass. Photo: Peter Vanderwarker

Biogen had its own needs, too. The company wanted to break down barriers between its management and employees and encourage collaboration among its scientists and researchers through the architecture of the building.

Open Office Plan

The new global headquarters has no private offices, just individually designed workstations called “I spaces” and common “huddle rooms” for private phone calls or spontaneous meetings. The company scrapped telephone landlines for employees, who are issued laptops and headsets.

Panels in the ceilings and floors can be brought down to add soft walls and subdivide rooms for smaller group collaboration.

“The idea was to bring everyone together, no separate offices for executives or private areas for senior management, everyone has the same office in the open floor plan,” said Malisa Heiman, senior associate in the real estate and site planning for Biogen.

Biogensavings

Schedule and project savings on the Biogen project.

Construction Manager Consigli Construction co-located with SGA and several of the project’s subcontractors during the design stage of the project. All mechanical, electrical and plumbing subcontractors were on board during design meetings. Read more

A few weeks ago I had dinner at a friend’s house. The floor ended up kind of messy, so I offered to sweep the floor in gratitude for the delicious meal.

Free Webinar: What EPA Clean Power Plan Could Cost Your Business

But that wasn’t necessary because my friend had a vacuum-cleaning robot. I had heard about these robots before but never thought they would work so well. I was impressed.

IRobot_Roomba_550

I can clean any surface and charge myself, but if you don’t empty me I WILL gorge myself on cat hair and die.

The robot, with sensors built in, was able to avoid every obstacle in the house and recognize the dirtier areas so it could stay longer in those. Finally, when the robot finished cleaning it automatically came back to its spot to recharge itself. This little vacuum-cleaning robot has become exponentially better and cheaper during the past few years and today even a cat can drive one of these. The only real dependence they have on their human guardians is to plug in the charging station and empty them. Read more

This is a fourth post on a series of posts on exponential technologies (see part 1part 2 and part 3).

Why Manufacturers Need to Ditch Purchase Price Variance

Yesterday, I realized I was running out of underwear, which means that I didn’t have any more excuses to not do my laundry. As I was walking down the street, I pulled out my phone and without clicking any button I said: “Ok Google, remind me to do laundry when I get home.”

Despite my strong Spanish accent, the phone perfectly understood what I meant to say. Four hours later, as soon as I opened the door to my apartment I felt a vibration in my pants. My phone knows where I live and it used its GPS to figure out that I had just arrived home. I looked at the screen, and saw the reminder. A couple of hours later… I had a new set of clean underwear. Thank you, Google!

Her550

Samantha, what do my metals procurement options look like? “Her” image courtesy of Warner Bros.

This is not just an example of low-level artificial intelligence, but also a sign that AI is reaching the knee of the exponential growth curve, getting ready to run wild as a disruptive technology. AI is an exponential technology about to be found everywhere in our daily lives and jobs.

Read more

This is a third post on a series of posts on exponential technologies (see part 1 and part 2).

Why Manufacturers Need to Ditch Purchase Price Variance

Cloud computing is not only an exponential technology but also one that will act as a platform for information sharing and collaboration, allowing other exponential technologies to grow thanks to its connectivity.

Does Anyone Know What The Cloud is?

Understanding what this technology is might seem complex, but cloud computing is simply the union of billions of computers into a network that can be accessed remotely.

Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

Read more

Today in MetalCrawler, losses widened at a major stainless steel manufacturer, an aluminum giant gets a new CEO and two design and construction software companies team up for better workflows for HVAC designers and installers.

AK Steel Loss Widens

AK Steel Holding Corp. said its first-quarter loss widened from a year earlier on a big write-down related to its investment in iron-ore pellet joint venture Magnetation LLC.

Why Manufacturers Need to Ditch Purchase Price Variance

Average selling prices fell 8.9% from a year earlier, while shipments increased 39%, with a boost from an acquisition and strong demand from the automotive sector.

Ohio-based AK Steel in March predicted that shipments of carbon and stainless steel to the automotive market would remain strong because of market demand. However, the company warned that it expected its shipments to decline 14% from the fourth quarter to roughly 1.7 million tons on weakness in the carbon steel spot market, which AK Steel attributed to rising imports.

Martens Leaves Novelis

Novelis Inc., the US’ largest aluminum recycling and rolling company, has announced the departure of Philip Martens as the company’s president and CEO. Replacing Martens as president on an interim basis is Steve Fisher. Novelis says it has begun a search for a permanent CEO.

Martens, a former Ford Motor Co. executive, joined Novelis in 2009. During his tenure with Novelis the company shifted its focus toward servicing the automobile industry.

Vulcan Works With AECOsim for Ductwork

Geo-positioning and construction software manufacturer Trimble recently started supporting new construction modeling workflows with enhanced integration between Bentley Systems‘ AECOsim Building Designer software and Trimble’s Vulcan sheet metal cutting software for the HVAC market. The new workflow integration enables design models to be shared easily, securely and accurately. The move expands the companies’ ongoing collaboration around “Construction Modeling” and enhanced information mobility.

Vulcan is a sheet metal cutting software product for HVAC contractors, design/build firms and duct manufacturers, who rely on the software to increase shop productivity, plan duct design and installation and reduce waste.