This morning in metals news, the Bureau of Labor Statistics reported prices of U.S. imports increased in May, Alcoa will begin the formal process of dismissing employees at the San Ciprián aluminum smelter, and India wants its oil and gas producers to use more domestically produced steel.
Import prices tick up in May
The prices of U.S. imports rose 1% in May after declining by 2.6% and 2.4% the previous two months, the Bureau of Labor Statistics reported.
“Prices for U.S. imports rose 1.0 percent in May, the largest 1-month advance since the index increased 1.0 percent in February 2019,” the BLS reported. “In May, the advance was driven by higher fuel prices; nonfuel prices also increased. Despite the May increase, the price index for U.S. imports decreased 6.0 percent from May 2019 to May 2020.”
Alcoa begins process of layoffs at Spanish smelter
Alcoa will begin the formal consultation process toward laying off employees at its San Ciprián smelter in Spain.
The process will begin June 25, 2020, the company said.
“On May 28, 2020, Alcoa launched an informal process with the workers’ representatives to discuss significant and unsustainable circumstances at the aluminum plant,” Alcoa said. “The Company now intends to begin the formal 30-day consultation period with the Works Council to achieve the best possible outcome for the Company and its workforce.
“The Company envisions a restructuring for the aluminum plant that retains a portion of the casthouse in operation. A collective dismissal could potentially affect up to 534 employees of the aluminum plant. No final decisions will be made until the mandatory, formal consultation process is complete.”
India wants energy producers to use domestic steel
According to Reuters, the Indian government is urging domestic oil and gas producers to use Indian steel in an effort to boost the economy.
Like other countries struggling with the health and economic fallout of the coronavirus pandemic, India’s economy is expected to contract by 5% this fiscal year, Reuters reported.