1920’s Glitz & Glamour At The Speakeasy

It was all Trilby’s and Flapper dresses this year as the team at Metalogic headed for a night of 1920’s Glitz and Glamour when they attended the Ricoh Arena’s Speakeasy event for their annual Christmas bash.

Following a successful Townhall meeting that recognized a high-performing year staff were in the mood to party and they were not disappointed!  With over 2,000 guests from organisations across the region attending the event in the Ricoh’s Jaguar Exhibition Hall the team were in for a treat.

Following fizz on arrival 30 plus staff members and partners squeezed into the frame for a team photograph before taking their seats to enjoy a full cabaret act as dancers and performers took to the stage with a vibrant and energetic show. A superb three course meal followed and the wine was flowing; however if that was not enough to get the head spinning a turn on the dodgems would certainly do the trick!

The video and pictures speak for themselves but hat’s off to the Ricoh for a truly spiffing event!

Metalogic Ditch Secret Santa for Kids in Refuge

Metalogic staff were pleased to ditch the Secret Santa as they gathered for their final Townhall meeting of the year at the Ricoh Arena this month.  But this was no ‘bah-humbug’ moment as the usual tradition of exchanging gifts became a more charitable affair when the company chose to support the KidsOutGiving Tree Appeal.

The Giving Tree appeal enables local firms to buy toys for children at crisis centres, who may not otherwise receive a gift at Christmas and having supported this national charity earlier in the year at their annual Question of Sport Event supporting the appeal was the natural choice.

Mel Newell, Customer Support who coordinated the gift giving for the appeal said staff were pleased to be able to help “Secret Santa is always a challenge when everyone is so busy but the enthusiasm with which every staff member approached this was heartwarming. We had an array of wonderful gifts from Barbies to Scooters and everything else in between and knowing these will help to bring a smile to children who may find themselves in refuge this Christmas, often having left their homes at short notice to escape domestic violence, is a gift within itself.” 

The feelgood factor continued with the meeting kicking off on a positive start as it was confirmed to all the strong performance for the year, which included the completion of two major implementations at B&M and Howco adding up to over 1100 new users across 8 countries, there were notable development successes for implementing new functions for mobile stock take, location management and stock adjustments functions and it was acknowledged within the Global Jonas Group that Metalogic’s continued performance has been outstanding, which is a testimony to the whole team.

Peter Harding (Professional Services) & Steve Ball (Technical) were acknowledged for their continued support and presented with long service awards amassing a total of 23 years between them.

It was also time to say goodbye and thank you to Bill Baillie (Customer Services) who will be trading his support role for a more leisurely pace of life since he took retirement at Christmas.

The day concluded with a Wasps media tour of the Ricoh Arena with Ex Club Captain Chris Bell – staff were able to visit the Wasps Players Changing and Hospitality areas plus enjoyed a pitch-side photo opportunity followed by an interesting and insightful Q&A session with the former player.

NASS 2016 REVIEW AND LOOKING FORWARD INTO 2017

Metalogic are pleased to share an overview of NASS activities in 2016 from Director General, Peter Corfield

This year has certainly proved to be an “interesting” one with the Brexit vote providing the major talking point.  The immediate aftermath of the EU referendum was characterised by heightened volatility in financial markets.  While equity prices have since risen above pre-referendum levels, Sterling remains weak and potentially volatile.  The forecast for GDP growth has been revised upwards to 2% as a result of economic activity being stronger than anticipated post Brexit.  It also reflects that activity growth has remained resilient and business sentiment recovered from its post referendum fall, but is still considered “fragile” when uncertainty of the longer term outlook is factored into the assumption.  Growth expectations for 2017 range from 1.3% to 1.5%, a cautious view against the previous number of 2%, and a combination of lower business investment and uncertainty remaining throughout the negotiation process that underpins this conservative forecast.

In terms of manufacturing, it’s been all change in the last three months, with output and order balances returning to positive territory for the first time since Q2 2015.  Manufacturers’ confidence about the UK outlook has gained some ground due to larger than anticipated domestic activity.  The export recovery is taking longer to materialise but this is considered temporary, with stronger growth in overseas markets and the continued weak exchange rate forecast to boost export demand going into 2017.  The only “fly in the ointment” is the rising input costs as a result of Sterling depreciation.  Manufacturers will have to reflect these costs as the increases are too significant to absorb.  It should also be noted that some manufacturers will have benefitted from the previous two years’ continuous downward spiral of material prices, with the increases seen now only returning costs to 2014 levels in absolute terms.

Returning to the subject of Brexit, manufacturers require a carefully engineered process to support and protect industry in the UK.  The UK Government has announced a new approach to backing British Manufacturing, a welcome change from the previous administration.  However, the ambition of being an enhanced global trading nation must not be allowed to pressure negotiations and result in a clumsy exit plan which could do lasting damage to manufacturing in the UK and the wider economy.

The Government has indicated that in order to rebalance the UK economy it needs to strengthen our own industrial footprint.  The renewed focus on industrial strategies is also welcomed, with the timing never better, as the Metals Strategy is currently being embraced by the UK Government and The Metals Council.  A long term consistent Industrial Strategy can play an important role in boosting growth within the UK.  It will require cross-party agreement to deliver consistency beyond the political cycle.  The core sector strategies will require successive governments to take a long term view to be able to achieve long term growth and prosperity within the UK.  Hence, industrial strategies will need, as a minimum, a programme of action over ten plus years in order to maximise return for investments and give businesses real confidence to innovate, recruit, train and deploy skilled personnel in the process.  It should also be noted that for the UK to be really competitive, the implementation of the Industrial Strategy is just as important as the Strategy itself.  Typically within the UK this will mean significantly improving the decision making processes and increasing the speed and nimbleness of delivering on initiatives to enhance growth are formulated and rolled out.

It is good to note that consideration of a sector-led approach is being promoted to ensure industrial sectors where the UK holds a competitive advantage are to be further “backed” and hopefully create momentum to build upon for future benefit.  At the same time the “place-based” approach is at long last also being promoted as the way forward.  The UK in total can only achieve comparable productivity levels with Europe and Rest of World if industrial strategies are applicable to all regions of the UK and prosperity leveraged accordingly.  On this latter point, addressing the infrastructure requirements in the UK will be central to ensure “pools” of employment can be widened and the efficiency of supply chains improved.

NASS Members continue to be pivotal in the supply chain to all key industrial metal sectors.  NASS is represented on the Supply Chain Workstream of The Metals Council and is actively focussing on increasing opportunities within the UK to enhance sales and revenues, particularly within the manufacturing sector.  The objectives for 2017 for the Supply Chain Workstream are focused upon:

• Targeting increased “local content”,
• Accessing innovation funding, and
• Addressing the issues of UK supply being maximised within the public sector.

All of these factors, if addressed, have the ability to significantly increase Gross Added Value.  Supply chains are integral to the success of this ambition and NASS Members will hopefully benefit from this approach going forward.

The global forecast for steel production in 2016 is expected to be at a similar level to last year, circa 1.6 billion tonnes.  Capacity utilisation remains the major concern, with 70% becoming the norm, some 10% below historical levels of “acceptable” capacity rates.  The Chinese factor is still evident on a global basis, with exports likely to still be 100 million tonnes in 2016.  Fortunately European and UK imports of Chinese product are significantly down on last year but the resultant displacement of domestic volumes, particularly in South East Asia, has the potential to create other sources to be attracted to the European marketplace.

Within the UK, demand in 2016 is likely to be similar to those seen in the last couple of years.  Likewise, the demand for NASS Core Products will be circa 6 million tonnes, a level experienced for the last seven years.  NASS Sales will also reflect a similar pattern, with circa 50% of demand being met by NASS Members’ activity.

The market conditions within the UK have certainly taken a significant shift in the last 6 months which has already been encapsulated in a circular published at the beginning of December: UK Steel Price Increases Inevitable throughout 2017  

NASS statistics for 2016 indicate again mixed fortunes across the Product Groups but the overall position is circa 3% down on last year’s numbers.  The best performance has again been with the Long Products portfolio, which is 5% above 2015 numbers due to Structural Sections being 10% ahead when compared to last year.  Plate and Profile numbers reflect the reduction in UK demand for Reversing Mill Plate, which is 13% down on 2015 levels.  This product is still suffering from reduced activity levels from the Yellow Goods market and Oil & Gas sectors which remain depressed.  The Flat Products portfolio has seen an 8% increase in overall terms, with Hot Dipped Galvanised product being 17% up for the first three Quarters of 2016.  Against this background, NASS numbers are somewhat disappointing with only a 1% improvement in Galvanised products evident.  The reduction in Hot Rolled and Cold Reduced products has generated a shortfall of 8% after three Quarters of 2016.

The demand for UK steel products going forward into 2017 is probably demonstrating similar, if not better, activity as the year progresses.  However, the major factor outweighing the volume shortfall is the revenue opportunities which should create acceptable returns for 2016 and next year as the positive signs are forecast to remain well into 2017.  The only issue likely to be facing NASS Members will be achieving acceptable exposure cover with Risk Underwriters as steel price increases are likely to be 40/50% above the low point of March 2016.  In summary, steel service centres should be looking forward with some optimism to the year ahead and hopefully this will be reflected in profitability for all concerned.

So, what of NASS in 2016?

NASS continues to build on its solid foundation and seeks to provide Members with “value for money”.  A summary of 2016 is shown below:

• NASS is a Member of the Metals Forum and, together with like-minded Associations, is involved in promoting and seeking to optimise benefits for all involved in the Metals Sector. It also provides governance of The Metals Council, established midway through 2016.

• NASS has maintained its quarterly meetings with the Agents for the Bank of England. These sessions have provided the Bank with important data for inclusion in their Quarterly Review discussions which influence Bank of England’s Monetary Policy Committee deliberations.  The latest Agents’ Summary of Business is available each month on the publications page of the NASS website.

• NASS has conducted reviews with the major UK Risk Underwriters throughout the year. Plans are already in place for this to be repeated in 2017.  Given the significant changes to the market conditions and increase in steel prices, pressure on credit limit exposures has come to the fore.  The benefit of having these liaison meetings has ensured that the Risk Underwriters have been kept informed of market circumstances and provided an information exchange which has benefitted all involved.  The key message throughout 2016 has been to communicate and not generate “surprises” in the process.  The robust nature of NASS Members and their ability to manage the economic cycle has created continued appetite for Risk Underwriters to be involved with our sector.  The Annual NASS Credit Seminar was once again a major calendar event, which reiterated the above and also highlighted the issues of recognising “financial distress” and fraudulent practice.

• The Health & Safety Committee remains a cornerstone of NASS and has again produced and provided significant guidance to the steel service centre sector. Meetings have taken place throughout the year in conjunction with the Health & Safety Executive.  NASS has been informed that the steel service sector is considered low risk and only likely to attract Inspectorate visits in the case of a significant incident/occurrence within a business environment.  The output of those sessions has impacted and influenced health & safety aspects of the steel service centre environment.  It is noted that Occupational Health has come to the fore.  This was the main focus at this year’s Safety & Health Awareness Day (SHAD) which was again a successful event and in particular highlighted the issues of Metalworking Fluids.

• The revised HSG246 “Safety in the storage and handling of steel and other metal stock” has been completed and endorsed by the HSE. This document provides a reference point for the Inspectorate and Local Authorities whilst undertaking site visits undertaken in the UK.  A copy of the document can be seen on both the HSE and NASS websites:  HSG246: Safety in the storage and handling of steel and other metal stock

• In order to further improve accident performance, NASS together with other members of the Metals Forum, has generated common accident statistics utilising the RIDDOR criteria. This has enabled benchmarking and sharing/learning to take place on an ongoing basis throughout 2016.

• NASS is now seen by EUROMETAL as the lead body in Europe in terms of Enhancing Best Practice on Health & Safety matters. Hence a number of NASS reports and campaigns have been included on the EUROMETAL website to help improve the awareness of health & safety issues within European steel service centres.  NASS will be presenting a Health & Safety Update to the World Service Centre Summit to be held in Düsseldorf in May 2017.

• Product Group Meetings are seen as a key component of the NASS offering. The meetings provide networking opportunities for Members to discuss sector issues in a compliant manner.  These discussions have provided a good interface for both NASS Members and suppliers to comprehend the circumstances of the UK marketplace.  Whilst there appear to be significant benefits to all concerned, attendance at the meetings for some Product Groups has once again been disappointing.   Hence, in 2017, NASS will be seeking to “beef up” attendance at Product Group meetings by inviting relevant service centre companies to engage in the discussions.  Some of these will be past members who hopefully may be persuaded to re-join the Association in due course.  It is also intended to vary the location of the meetings to include site visits to steel producers and, where possible, create networking opportunities on the evening of these meetings.  The recent visit to Liberty Steel Newport and the inclusion of a networking event following the meeting of the Flat Products Group and Suppliers was a good example of the Product Group offering going forward.  The networking that evening, sponsored by Liberty and NASS was a great success.  The possibility of also being involved with the evening summer function of ISTA held in Birmingham each year is also under discussion to further enhance Members’ networking opportunities.

• NASS remains a Member of the National Federation of EUROMETAL, which is the representative body of Steel Service Centres throughout the EU28. Regular updates on market data, economic forecasts and Business Reports are made available for NASS Members.  These will, in future, reside on the Members Only section of the NASS website.

• NASS has enjoyed successful engagement on training activities throughout 2016. The Metallurgy, Essentials for Inside Sales and Health & Safety Passport Plus Courses were all fully subscribed and future course dates are notified on the website.   Going forward, NASS is already considering other training providers to expand what is currently a very successful programme.

• NASS did not undertake Mill Visits in 2016 due to circumstances surrounding the UK steel industry, however, plans are already in place to reinstate the visits in 2017. These visits provide awareness of steel production and are very informative for participants who gain a perspective of how steel is manufactured.

• The development of the NASS website is an ongoing process. In 2016 discussions have taken place to revamp the site’s capability to facilitate newsfeeds and become the portal for NASS information.  As part of the updating process, the Health & Safety archives have been further refined and now also provide Legislation Updates twice a year.

• NASS has maintained its Membership of CBI and Black Country Chamber of Commerce. These organisations provide Members with useful insights on business matters.  Publications of note can be seen on the Publications page within our website.

• The NASS calendar in 2016 resulted in successful social, networking and informative gatherings taking place. The Annual Dinner attracted over 350 people and £4,839 was raised for The President’s Charity, The Bobby Moore Fund for Cancer Research UK.  The other key networking events, namely the NASS Golf Day and Race Day, were fully subscribed and enjoyed by all present.

The programme for 2017 will include the following:

• Annual Credit Seminar
• Safety & Health Awareness Day (SHAD)
• Golf Day
• Race Day
• Annual Dinner

The dates can be seen on the NASS website, under Events.

 So, as another year comes to a close, we can reflect on the above with some pride.  NASS understands the conditions of the market in Q1 2016 made life difficult for Members, however, the following three Quarters will hopefully have provided positive revenue opportunities which will continue into 2017.  Notwithstanding this situation, NASS is reviewing how to engage with its Members taking account of time, effort and cost involved in attending NASS meetings.  The President’s Committee are currently considering introducing an Incentive Scheme to reward existing Members who introduce new members to NASS going forward.  Furthermore, suppliers will be encouraged to join as Associates to ensure liaison meetings are beneficial for all.

In addition, NASS will be reviewing the promotion of its activities to both Members and potential members to reinforce the NASS offering.  With this in mind, NASS will be taking up Affiliate Partnership status with the Engineering Employers’ Federation (EEF).  All NASS Members will then, on registering, have the opportunity to become an Affiliate Member themselves and have access to information from EEF.  Furthermore, if Full Membership modules of EEF, such as Legal and Human Relations are taken up, a 10% discount will apply.

In conclusion, NASS has hopefully consolidated its position within the UK and looks forward to your continued support in 2017.  It just remains for Karen, Joy, John and myself to wish all Members and their staff a Happy Christmas and prosperous New Year.

EXECUTIVE SUMMARY OF THE ANTI-DUMPING COMPLAINT INTO CERTAIN CORROSION RESISTANT STEELS ORIGINATING IN CHINA

A. THE PRODUCT CONCERNED

1.   The product concerned is “certain corrosion resistant steels” (CRS) originating in the People’s Republic of China (PRC).

2.  These are flat-rolled products of iron or alloy steel or non-alloy steel; aluminium killed; plated or coated by hot dip galvanization with zinc and/or with aluminium, and no other metal; chemically passivated; containing by weight: 0.015% or more but not more than 0.170% of carbon, 0.015% or more but not more than 0.100% of aluminium, not more than 0.045% of niobium, not more than 0.010% of titanium and not more than 0.010% of vanadium; presented in coils, cut-to-length sheets and narrow strips.

3.  The following products are excluded:
• of stainless steel, of silicon-electrical steel, and of high-speed steel;
• not further worked than hot-rolled or cold-rolled (cold-reduced).

4.  The product concerned is currently falling within the following CN codes: (i) for flat-rolled products of iron and non-alloy steel, ex 7210 41 00, ex 7210 49 00, ex 7210 61 00, ex 7210 69 00, ex 7212 30 00, ex 7212 50 61 and ex 7212 50 69; (ii) for flat-rolled products of alloy steel of a width of 600mm or more, ex 7225 92 00 and ex 7225 99 00; and (iii) for flat-rolled products of alloy steel of a width of less than 600mm, ex 7226 99 30 and ex 7226 99 70.

B. CASE SUMMARY

5.  Standing: this complaint is brought by The European Steel Association (Eurofer) on behalf of the complainant Union producers of CRS products, and supported by overwhelming majority of the EU CRS producers (over 80%).
6.  Dumping: the imports from China were dumped by considerable margins, around 50% in the complaint IP (Q3 2015 – Q2 2016).
7.  Imports: imports from China surged, just as the EU profitability decreased and Union Industry started to suffer worsening losses. The imports in the IP were 40% higher than those in 2014. Chinese imports have more than doubled since 2013.
8.  Underselling: the prices of the imports fell in the same period, underselling the Complainants by almost 40% in the IP.
9.  Injury: the complainant EU CRS industry is suffering material injury, and is faced with further material injury due to the surging dumped imports unless measures are imposed. The long term trends reflect the Complainant EU CRS Industry’s deteriorating situation in the IP.
10. Union Interest: anti-dumping measures on CRS products from China are in the Union interest. Anti-dumping measures would restore fair competition in the EU and would ensure that end users have a long-term and reliable source of supply. Measures would not result in short supplies, because (a) Chinese imports could continue to enter the EU (on a fairly traded basis) and (b) there is sufficient capacity in the EU and in third countries to cover any shortfall. Absent anti-dumping measures, the Complainants may ultimately be forced to curtail production, limit investments, and lay off workers the surge in dumped Chinese imports continues. In this regard, it is notable that each job lost in the steel sector means (at least) a further four jobs lost in industries directly dependent upon it for business.

C. INTERESTED PARTIES

 The Complainants
11. The Complainants are: ArcelorMittal Poland S.A., ArcelorMittal Romania, ArcelorMittal Belgium, ArcelorMittal France, ArcelorMittal Germany, ArcelorMittal Italy, ArcelorMittal Spain, Tata Steel Netherlands, Tata Steel UK, Voestalpine and Salzgitter AG.

The Exporting Producers

12. The Exporting producers in China are: Benxi Iron & Steel (Group) Co. Ltd, Panzhihua Iron & Steel (Group) Co., Shanghai Baosteel Group Corp., Shunde Posco Coated Steel (Shunpo), Tangshan Iron & Steel Group Co. Ltd, Wuhan Iron & Steel (Group) Corp, Zhanjigang Pohang Stainless Steel Co. Ltd., TAGAL, Baotou Steel Union, LNM Yingkou, Guangzhou JFE Steel Sheet, Bayi Iron & Steel Co., Changshu Everbright Material Technology, Guanggang Steel Group/JFE Holdings (Guangzhou JFE Steel Sheet Co. LTD(GJSS)), Gunsan Iron & Steel Co., Handan Iron & Steel Co., Maanshan Iron Sc Steel Co., Union Steel China, Yieh Phui Enterprise Co., YIEH PHUI (CHINA), Changshu Huaye Strip, Huamei Flat Company, Jiuquan Iron & Steel, Shougang.

EUROPEAN STEEL DISTRIBUTION SHIPMENTS NOTED A DIVE DURING SEPTEMBER 2016 AFTER A RISE DURING AUGUST 2016

EUROMETAL’s unique market monitoring system is tracking EU steel distribution shipments and stocks for its two main business segments:

• Flat SSC distribution
• Multi-Product & Proximity Stockholding distribution

EU Flat SSC Distribution

EU shipments by flat SSC distribution came under pressure in September 2016 when they dipped by -3 % in a year-on-year comparison. During 3.Quarter 2016, shipments slipped down by -3% y-o-y, after a positive trend during the first half year 2016.

For the first 9 months of 2016, SSC shipments noted a rise of +2 %, year-on-year.

Stock volumes with EU SSC, when expressed in days of sales, noted 62 days in September 2016, compared with 58 days in September 2015.  In September 2016, EU Multi-Product & Proximity Stockholding Distribution noted a decrease in shipments in  main product lines, except for plates and for galvanized and other coated flats.

September shipments noted a drop of -6 % year-on-year. During 3. Quarter 2016, shipments decreased by -5 % y-o-y. Growth rate for the first 9 months 2016 lowered to +2 % in a year-on-year comparison.

Stocks of EU Multi-Product & Proximity Steel Stockholding Distribution, expressed in days of sales, reached 75 days in September 2016, compared with 72 days one year before in September 2015.

EUROMETAL is the European Federation of Steel, Tubes and Metals Distribution & Trade. EUROMETAL, on EU level, has developed over the last decade a representative and unique market monitoring system for EU steel distribution.

EU steel distribution & trade account for 5 000 companies, mostly small and medium sized enterprises, providing jobs to 110 000 people in the EU. EU steel distributors, SSC and traders are systemic players in EU steel markets, supplying 80 million tons of steel, tubes and metals to EU end use sectors. They account for more than 60 % of the supply in steel and tubes of EU manufacturing industries and of EU construction related sectors

Export Improvements Post Brexit

Following a difficult number of years within the industry in regards to reduced prices and falling margins, many metals sectors have actually witnessed improving prices and increased margins pre and post Brexit.

The fall in the pound post Brexit has seen an improvement in exports particularly in automotive and aerospace, and even in the challenging petrochemical sector confidence appears to be improving.

Metalogic has received a record number of enquiries with FIVE new system deals closed in the last quarter and are working with 12 companies on updates and improvements.

Increase in Performance from Metalogic Customer Support

Metalogic’s Customer Service team have seen a 10% increase in their performance over the year as defined within the Service Level Agreements. A number of proactive actions have resulted in this achievement including – increased training, greater knowledge of the systems and quicker solutions.

The consolidation of versions and the closing of old issues has allowed access to new functionality and reduced the number of deployed versions of iMetal from 21 to 2.  The implementation of automated testing software means that all new development is flow tested at the end of each working day.

The performance of the Customer Service team will also be measured by customer satisfaction surveys which will ensure the quality of the personal service is achieving the desired result.

More for your money with iMetal

Following news of recent price increases from Microsoft (and others) of up to 22% Metalogic customers recognise the great value for money iMetal represents. Investment in iMetal not only means that users buy into its USP – the breadth of knowledge of the sector and the depth of functionality that currently supports some of the world’s most successful metals businesses; but it is the browser based open source software that makes this extremely good value for money.

Open-source software (OSS) is computer software with it’s source code made available with a license and the copyright holder provides the right to study, change and distribute the software which can be developed in a collaborative manner.

Open source software is now run by 78% of companies worldwide rising from 42% in 2010 and is expected to rise to 80% by 2018. Get in touch to learn how implementing iMetal can save you money.