Tag: US economy

Molycorp Likely to Miss Loan Payment Today, US GDP Shrank in Q1

Molycorp Likely to Miss Loan Payment Today, US GDP Shrank in Q1

The only US rare earths miner may miss a payment deadline today, President Obama signed an extension of funding for the Highway Trust Fund for just two more months and US economic growth actually contracted in the first quarter.

Molycorp Loan Payment Due Today

Rare earths miner Molycorp is expected to announce it will skip a $32.5 million loan payment today, triggering a 30-day grace period that could lead to a bankruptcy filing before the end of June, the Wall Street Journal reported, attributing the information to people familiar with the matter.

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

In 2010, after Molycorp — formerly a unit of Chevron Corp. — was sold to private-equity firms in 2008 for $80 million— the company was able to raise $394 million in a public offering. Around that time, China tightened existing quotas on rare-earths exports in a bid to rein in overproduction and keep more supply available for domestic manufacturer and prices soared.

Since 2011, however, rare-earths prices have been on a long slide downward. Now with a market capitalization of around $150 million, Molycorp is indebted and unprofitable. Customers are putting in orders, but the company hasn’t met production targets at its Mountain Pass, Calif., mine and is in restructuring talks with firms representing its creditors.

U.S. Steel Suffers Q1 Loss, Economy Barely Grows, ITC Affirms Chinese Steel Tube Tariffs

U.S. Steel Suffers Q1 Loss, Economy Barely Grows, ITC Affirms Chinese Steel Tube Tariffs

Another day at MetalCrawler and another steelmaker reports a loss due to imports. Also, US economic growth ground nearly to a halt in the first quarter and the US International Trade Commission reaffirmed duties on Chinese steel tubes.

U.S. Q1 Results Disappoint

U.S. Steel Corp. reported a loss and lowered its pretax 2015 earnings forecast by around $500 million, citing “massive” imports, particularly from China, low oil prices and excess inventories.

Why Manufacturers Need to Ditch Purchase Price Variance

The results were worse than expected and pushed the Pittsburgh-based steelmaker’s stock down.

Domestic steelmakers are reeling as prices have dropped to their lowest levels since the 2009 financial crisis. The benchmark hot-rolled coil index has declined 26% since the start of the year, to $444 per ton.

U.S. Steel Chief Executive Mario Longhi called market conditions “extremely difficult” as the company, in a statement, blamed imports and oil prices.

Overall steel imports into the US rose 14% to 7.9 million tons during the first two months of 2015, according to Global Trade Information Services. The US imported 397,062 tons of steel from China during that time, up 24% from the same period a year before.

US Economy Barely Grows

The US economy skidded to a near halt in the first three months of the year, battered by harsh weather, plunging exports and sharp cutbacks in oil and gas drilling.

The overall economy grew at a barely discernible annual rate of 0.2% in the January-March quarter, the Commerce Department reported Wednesday. That is the poorest showing in a year and down from 2.2% growth in the fourth quarter.

ITC Affirms Steel Oil Tube Tariffs

The US International Trade Commission (ITC) voted unanimously that US producers were injured by subsidized imports of oil country tubular goods (OCTG) from China. The ITC decision affirms countervailing duties (CVD) of 10-16% established earlier this year by the Commerce Dept. Commerce will now issue a countervailing duty order on the Chinese imports as a result of the ITC’s affirmative determination.

Deflation Stalks Slowing Economies, Threatens Prosperity

The drop in global stock markets this week is symptomatic of a deeper malaise as financial markets have woken up to the fact that deflation is a real risk for many European markets and possibly for Europe as a whole.

Don’t miss this free download of our Monthly MMI® Report, covering price trends in 10 metals markets.

Greek 10-year bond yields rose 108 basis points this week to 8.94% as investors fled Greek debt. Just a week ago the yield was 6.6% as the radical left opposition Syriza party, which has dubbed Greece’s debt unsustainable at its current level of 174% of national output, pledged to reverse the EU/IMF bailout reforms and seek to write-off of 50% of the country’s debt if it comes to power.

Free Report: Metal Price Trends Monthly Review – October 2014

The leaves are on the ground, the wind’s a bit brisk, and children are filing through pumpkin patches looking for the perfect gourd.

Meanwhile, you’re at the office, trying to work your company’s metals and materials spend into the budget for next year. (How’s that going?)

Why Chicago Is Ground Zero for Future US Manufacturing Trends

Why Chicago Is Ground Zero for Future US Manufacturing Trends

How advanced is advanced manufacturing, really? Perhaps the real question is, will advanced manufacturing advance the economy overall, and contribute enough to make US industries sustainable in our global environment? […]

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