Caterpillar Closing Plant in West Virginia; Chinese Rebar Rises 2.6%

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Caterpillar is cutting, cutting, cutting. On Monday, the company announced that they would be closing a plant in Beckley, West Virginia, eliminating 40 jobs.

“Last week, Caterpillar said it would close its Kilgore, Texas, assembly plant in response to falling demand for mining machinery and relocate that production to plants in Kansas and Wisconsin. The Kilgore plant makes dippers and ballast boxes used in giant electric-powered mining shovels,” reports The Wall Street Journal.

“Caterpillar last month reported that third-quarter sales of its mining equipment fell 42% from a year ago to $3 billion as mining companies continued to delay investment.”

“The company also recently has closed or announced plans to shutter small plants near Toronto and in Summerville, S.C.; Owatonna, Minn.; and Sudbury, Canada.”

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On the weekly Construction MMI®, Chinese rebar rose 2.6 percent to finish as the week’s biggest mover. The price of Chinese H-beam steel rose 1.2 percent after falling 2.0 percent during the previous week. US shredded scrap saw its price rise 0.3 percent over the past week. The Chinese low price of 62% Australian iron ore fines remained steady from the previous week.

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The price of European 1050 aluminum declined 1.6 percent over the past week. Chinese aluminum bar traded sideways last week.

The weekly US Midwest bar fuel surcharge closed last week, after a 0.5 percent drop. The weekly US Gulf Coast bar fuel surcharge saw a 0.4 percent drop this week. The weekly US Rocky Mountain bar fuel surcharge declined to $0.53 per mile after drifting 0.3 percent since last week.

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