This morning in metals news, Ford Motor Co. is expected to say rising metals costs are cutting into its profits, Japanese crude steel output is down and South Korea’s largest steelmaker is reaping the benefits of high steel prices.
Rising Metals Prices Eating Into Profits: Ford
Aluminum prices have risen 20% in the last year, according to the report, which particularly affects Ford, as it uses more aluminum than its rivals.
Ford’s earnings estimate released last week indicated the automaker could lose out on $1.6 billion in 2018 due to high metals costs and currency volatility, according to the report.
Japan’s Crude Steel Output Falls
Japanese crude steel output in 2017 fell for the third straight year, according to The Japan News.
The Japan Iron and Steel Federation announced the figures Tuesday, noting that output in 2017 dropped 0.1% last year.
Japan produced 104.66 million tons last year, its lowest total since 2009, according to the report.
Posco Enjoys Steel Price Rise
Speaking of steel, South Korean steelmaker Posco, the largest steelmaker in the country, is benefiting from rising steel prices, according to the Nikkei Asian Review.
The firm posted its best earnings in five years last year, according to the report.
Due to Chinese capacity cuts on the basis of environmental concerns, the company will continue to enjoy high prices in that market through the second quarter of this year, according to analysts cited in the report.