Summary of Tube & Pipe Industry news items
for the period Dec 16/06-Jan 15/07
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January 3rd  - Market Stats London U.K. - Oil and gold tumble, but base metals buck trend.
Oil and gold prices fell sharply on Friday as commodity markets made a weak start to 2009 following their worst ever losses last year. Industrial metals, by contrast, bucked the trend with Nickel for three months delivery soaring 15.8 percent to a peak of $13,550 a tonne, the highest price since Oct 30, while lead, tin and zinc also rose sharply on fund buying. Nickel was one of the worst performing commodities in 2008, effectively lowering its weighting in commodity indices, and the index funds are expected to buy the metal as they seek to restore the balance to normal levels. Copper, which slumped more than 50 percent in 2008, rose more modestly to $3,120 a tonne from $3,070 a tonne at the close on Wednesday. U.S. light, sweet crude fell $2.82 or 6.3 percent to $41.78 a barrel by 1255 GMT, reversing part of Wednesday's $5.57 a barrel gains. Oil tumbled 54 percent last year.
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January 2nd  - General Pittsburgh Pennsylvania - Deep steel production cuts anticipated in 2009
The global steel industry is likely to cut production by at least 10 percent next year, the largest drop in 60 years, according to analysts cited by the Financial Times. There was a sharp drop in orders from construction, automotive and domestic appliances in September and October. Steelmakers such as U.S. Steel Corp. in Pittsburgh, ArcelorMittal, OAO Severstal and Corus, owned by Tata Steel Ltd., have reduced production. World Steel Dynamics, a U.S. consulting firm, said worldwide production might fall 13.9 percent.
December 31st  - General Brantford Ontario - Best wishes for 2009
We at tubelinks.com wish you a prosperous 2009 – On the balance 2008 was a good year for tube and pipe producers at least the first 3 Quarters and especially for producers of seamless OCTG (oil country tubular goods) pipes. There is no point in trying to forecast what is in store for 2009. Oil prices rebounded in the last week of 2008 and so did copper, but analysts seems to be undecided if the rebound was just an adjustment to a weak US dollar or caused by the sudden decision by Israel to teach Hamas, the democratically elected government of Palestine, a lesson, for constantly launching missiles into southern Israel. Or is the $40 a barrel oil price and a rise in copper price indeed a sign that production cut backs are starting to stabilize prices.
December 30th  - Market Stats London U.K. - Copper prices may have leveled off after 65% drop since July 2008
On Tuesday December 23rd the London Metal Exchange, three-month copper closed at $2,870 a tonne, down from $2,960 Monday, when it touched its lowest price since October 2004. New York Comex followed suit and copper for March delivery dropped 6.45 cents, or 4.8 percent, to close at $1.2810 a lb. At 0236 GMT yesterday saw a rebound on the London Metal Exchange, where three-month copper was at $2,899/ton. Prices of the metal used in power and construction have fallen about 65 percent since a record high of $8,940 in July. The world refined copper surplus rose 67 percent to 120,000 tonnes in the first nine months of the year as weak demand in Japan, the European Union and the United States more than offset strong Chinese demand, the International Copper Study Group (ICSG) said.
December 30th  - General Detroit Michigan - General Motors sues parts maker Cadence.
Bailout or no bailout – bankruptcy lawyers and auction houses stand to experience a business boom in the wake of the automotive industry’s financial debacle. On Friday General Motors Corp. sued bankrupt supplier Cadence Innovation LLC for breach of contract, accusing the parts maker of refusing to turn over machinery needed to make "essential" GM car parts. GM could be forced to shut some assembly operations if closely held Cadence, based in Troy, Mich., doesn't turn over the tooling as required under an earlier financing deal, the Detroit-based automaker said in a complaint filed Dec. 24 in U.S. Bankruptcy Court in Wilmington. "Debtors are holding hostage tooling and equipment critical to the manufacture of parts for GM vehicles," the automaker said in court papers. "GM's right to possession of the tooling and equipment is indisputable."