This Morning in Metals: GFG looks to cut costs for post-COVID-19 economy

by on

JJ Gouin/Adobe Stock

This morning in metals news, GFG Alliance is preparing for the realities of the post-COVID-19 world, the U.S. set wind power records this spring and Chinese lead stocks recently doubled.

GFG Alliance eyes cost cuts

GFG Alliance, led by steel tycoon Sanjeev Gupta, has been an active player in the acquisitions market in recent years.

However, times have changed with the arrival of the COVID-19 pandemic.

Looking for metal price forecasting and data analysis in one easy-to-use platform? Inquire about MetalMiner Insights today!

As such, the group is preparing to adjust for the post-COVID-19 economy.

“As a result of the COVID-19 pandemic, demand from steel consuming sectors in certain regions has dropped by between 20% and 40% – an impact which is likely to continue for 12 to 18 months, compounding an already challenging market,” GFG said in a release this week. “The market for aluminium globally has been impacted, too, with inventories climbing.”

GFG plans to roll out a “global efficiency drive” composed of several steps, including a “comprehensive review of corporate overheads is underway with a view to reducing costs and enshrining new working practices.”

Central U.S. sets wind power records

The central U.S. had a productive spring in terms of wind power generation, the Energy Information Administration (EIA) reported.

“Earlier this year, the Southwest Power Pool (SPP), the regional transmission organization that manages the electric grid for much of the central United States, set records for the highest share of electricity demand supplied by wind power in both a single-hour period (72%) and a full day (62%),” the EIA reported.

“In 2019, wind power provided 29% of the electricity demand in SPP. On a monthly basis, wind power’s share of total demand in 2019 ranged from a high of 37% in October to a low of 18% in August. On a daily or hourly basis, however, wind’s share can be larger because of fluctuations in wind output and in total electricity generation.”

Chinese lead stocks surge

Lead stocks on Chinese exchanges more than doubled over the past week, Reuters reported.

Generate hard savings on your metal buys year-round; trial MetalMiner’s monthly outlook report

SHFE lead stocks reached their highest level since the week ending March 20, according to the report.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.