Autoworkers approve GM labor contract
Members of the United Auto Workers (UAW) union have approved a new contract with General Motors (GM), marking the first of the Big 3 US automakers to secure a contract and capping a dramatic two months that included six weeks of strikes against the company.
The vote at GM, with all locals reporting, was 54.7pc voting for the contract, the tightest margin seen in voting of the three companies so far.
Many of GM's largest plants, including its Flint, Michigan, and Fort Wayne, Indiana, full-size pickup truck plants, and the Wentzville, Missouri, midsize pickup truck plant, voted against the deal but will still have to abide by the terms.
At Ford so far 66.7pc of workers have voted to approve the deal with 10 sites still needing to vote, including the large Dearborn, Michigan, stamping, truck and engine plants. Although there are more than 10,000 union members left to vote at Ford, all would need to vote no to deny the agreement, according to an Argus analysis of the current vote tallies. The lowest margin of approval at a large Ford plant was 42.8pc voting for the agreement at the Louisville, Kentucky, truck plant, one of three Ford sites that has voted the contract down so far.
At Stellantis, workers have voted 66.5pc in favor of the contract, with seven sites left to vote. The vote margin for the contract is 5,722, with at least 15,400 members left to cast their votes.
The union struck at plants at Ford, GM and Stellantis beginning 15 September, lasting for six weeks. The union targeted all three companies at the same time for the first time in its history.
The strategy won pay increases that were more than double the companies' initial offers, with union members gaining 25pc increases over the life of the contract, a restoration of cost-of-living adjustments that had been lost during the 2008/2009 financial crisis, and other concessions.
The gains made by the UAW have filtered to non-unionized automakers in the US. Japanese automaker Toyota said it would raise wages at its US plants by an undisclosed amount in 2024, while Honda said it would increase pay by 11pc beginning in January.
Hyundai is increasing wages for employees at its two US plants by 25pc between 2024-2028, matching the pay increase the UAW secured.
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Jakarta forum calls for exploring Ni price references
Jakarta forum calls for exploring Ni price references
Singapore, 9 May (Argus) — The global nickel market should explore different price references for nickel products to reduce price uncertainty, panellists said at the Third Nickel Producers, Processors and Buyers Conference in Jakarta, Indonesia. The London Metal Exchange (LME) nickel price, which is the global benchmark for class 1 nickel products, has been volatile for years now since LME suspended nickel trading in early March 2022, when prices surged above $100,000/t overnight. There were hopes late last year that prices would become more stable this year. But the price outlook has been uncertain since the turn of the year, with class 1 prices on the London Metal Exchange (LME) slumping to a four-year low of $15,877.50/t on 6 February on expectations of weak Chinese stainless steel and electric vehicle demand, before rebounding to a six-month high of $19,387.50/t on 26 April because of a delay in Indonesian RKAB mining right approvals and a reviewed forecast suggesting a significant smaller surplus for this year. There should be a new reference to counter price volatility, some conference participants said, while others suggested decoupling class 1 and 2 nickel prices. "[Prices are volatile now because] most prices are referenced to class 1, so maybe we can explore further with more price references, like class 2 nickel pig iron (NPI) and mixed hydroxide precipitate (MHP)," Ray Gunara, president-director of Indonesian coal producer Harum Energy, said on 7 May. Harum Energy this year bought a majority stake in an Indonesian nickel processing and refining business. Most conference participants agreed that a different price reference would help maintain nickel price stability. "[NPI prices now are] difficult to predict because the class 1 [prices] are no longer linked to the product we are selling," Indonesia miner Trimegah Bangun Persada (Harita Nickel)'s president-director Roy Arman Arfandy said. Indonesia is the world's largest nickel producer. The correlation between the monthly average of the LME class 1 cash official price and Argus ' NPI ex-works China index has fallen to close to 0.41 between January and May, from 0.91 in 2023. The correlation between the LME class 1 cash official price and Argus ' class 2 nickel benchmark Indonesian Nickel Index (INI) for 10-14pc NPI fob Indonesia was 0.52 between January and May. Market participants at the conference also expressed hope for more government support. "Currently there is an imbalance between local and foreign investments, so we are hoping that the government can give more support to local players like us," one producer said. Another conference participant said that they would aim to build a precursor cathode active material plant if given more support. Argus ' class 2 nickel INI for 10-14pc NPI fob Indonesia stood at $118.70/mtu on 3 May. The INI for 37pc MHP was at $142.80/mtu fob Indonesia and 70pc matte was at $148.90/mtu fob Indonesia on the same day. By Sheih Li Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s scrap export tender extends gains for May
Japan’s scrap export tender extends gains for May
Shanghai, 9 May (Argus) — The monthly export tender of Japanese scrap dealer co-operative Kanto Tetsugen continued its upwards trend in May, propelled by a favourable currency exchange rate. The May tender was concluded at ¥52,590/t fas for 20,000t of H2 scrap on 9 May, an increase of ¥1,503/t from April. This brought the fob price to an equivalent of ¥53,590/t or $344.60/t. Two cargoes were settled on 9 May, one of 15,000t and another of 5,000t, both at the same price. Some market participants anticipated the first would go to Bangladesh, as in recent months, while some market discussions were suggesting both were destined for Vietnam. The Vietnamese domestic steel market has shown more signs of a recovery since mid-April. The renewed increase in the export tender was mainly driven by the depreciation of the yen. Despite the significant increase in the tender result, the equivalent price in US dollars only rose by around $1/t compared with the previous month. The yen weakened to ¥155.70 to the dollar from ¥151.80 on 10 April. The Argus H2 fob Japan assessment was ¥50,800/t on 8 May, while the April monthly average was ¥50,757/t fob Japan. Tokyo Steel following the Kanto tender raised the collection price at its Utsunomiya plant by ¥1,000/t and maintained prices at other plants. The increase in the tender result and domestic prices in the Kanto region will raise suppliers' target levels for export business. But overseas buyers may require more time to absorb the gain and await further rises in steel sales prices, a market participant said. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hybrid vehicles spur Toyota’s record 2023-24 profit
Hybrid vehicles spur Toyota’s record 2023-24 profit
Tokyo, 9 May (Argus) — Japan's largest car producer Toyota reported a record profit for the 2023-24 fiscal year ending 31 March, partially because of strong sales of hybrid electric vehicles (HEVs). Toyota nearly doubled its profit for 2023-24 to ¥5.3 trillion ($34bn), its highest ever for a fiscal year. It sold 11mn vehicles globally, including its luxury brand Lexus, up by 7.3pc from a year earlier. The sharp rise in profit partly resulted from higher demand for HEVs that Toyota sold 3.6mn units of globally, up by 32.1pc from the previous year. North America was the leading market for its HEV sales, said the company's chief financial officer Yoichi Miyazaki, but a further breakdown was undisclosed. Firm demand for HEVs, for which Toyota has both technological and commercial advantages given its long history of development and experience, has largely been prompted by a global slowdown in battery electric vehicle (BEV) sales. HEVs consume significantly less battery materials compared with BEVs, as their battery size is normally 10pc of a BEV. Toyota is accelerating HEV production during 2024-25, as it plans to increase sales by 24.5pc from a year earlier to 4.5mn units. This accounts for 43pc of the company's total sales projection and is up by around 8 percentage points from a year earlier. The global slowdown in BEV sales could mean customers are being sceptical about the overstated view that BEVs are the only solution for decarbonisation, said Toyota's chief executive Koji Sato, adding that the infrastructure necessary for driving BEVs, including charging stations, has not yet adequately developed. But he was unclear on whether Toyota will slow its EV strategy that it announced last year to sell 1.5mn/yr of EVs by 2026 with 10 new models. The company plans to sell 171,000 BEVs during 2024-25, accounting for 1.6pc of its total sales projections. This is up by 46.2pc from a year earlier but the projection is based on "conservative estimations", according to Sato. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Polymers stocks safe in storm-hit Brazil: Braskem
Polymers stocks safe in storm-hit Brazil: Braskem
Orlando, 8 May (Argus) — Brazilian petrochemical giant Braskem said its polymer inventories are safe and protected from the damage caused by heavy rainfall at its operations in southern Brazil during the past two weeks. The inventories include polyethylene (PE), polypropylene (PP), ethylene and basic chemicals. Braskem had to shutdown all of its operations in Rio Grande do Sul state after the extreme weather event in recent days , the company told Argus on Wednesday, on the sidelines of the NPE Plastics fair in Orlando, Florida. The shutdown was completed safely, with no harm to the company's plants at the Triunfo petrochemical hub, which represents about 30pc of its ethylene production capacity in Brazil. Braskem is reevaluating its supply chain strategy to deal with the lack of production at the Trinfo hub. This includes serving its clients with PE produced at other company hubs in Brazil and Mexico, where it owns PE manufacturing joint venture Braskem Idesa. The same goes for PP and polyvinyl chloride (PVC), with other production hubs serving customers if the weather situation does not improve in the coming days. Operations at Braskem's 260,000 t/yr bio-based PE plant will restart as soon as conditions improve, the company said. No fatalities occurred at the company's operations, but part of its workforce has lost their homes and are being taken care of by Braskem, according to the company. State governor Eduardo Leite called the the flooding "the worst disaster in Rio Grande do Sul's history." There are 100 people dead and 128 missing, according to the state's civil defense. Braskem said it will resume its operations gradually, after weather conditions normalize and logistics in the state such as airports, railroads and flooded roads resume. Braskem is the largest producer of thermoplastic resins in the Americas and a leader in biopolymer production. By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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