Economics – Shanghai Metal Corporation

Eco Update: China

A not so widely known fact is that China almost consumes as much coal as the rest of the world combined, where it accounts for 80% of the countries source for energy. This is an alarming trend considering that the burning of this fossil fuel is one of the most polluting ways to generate electricity. In an economy where manufacturing and industry is on the rise this further adds to our concern.

However, this may soon be about to change! Given the high levels of pollution in the country, particularly in industrial cities and around Beijing (where often daily particulate matter in the air can cause respiratory problems for even the healthy) people are sick of this issue and the government is listening. A number of measures have been announced that should help to curb this trend; firstly the country has introduced bans on the building of new coal fired power plants and place limits on total energy consumption. These legislative measures will be complemented with an emissions trading scheme, due to be implemented by 2016, bringing the country up to speed with the developed economies of Europe and New Zealand.

There are signs that this move is working too, with coal imports at their lowest since 2012 despite prices being at their lowest since the peak of early 2011. This is complemented by banning of extremely low quality coal imports, particularly varieties containing high levels of sulfur and ash whose burning produces the highest levels of pollutants.

As a responsible and socially aware Metal supplying and manufacturing company based in China (with global offices) with heavy involvement in the metals and mining industries,Shanghai Metal Corporation (SMC) is proud to report on this news and welcomes developments in this area as it will undoubtedly lead to an increase in the quality of life of many everyday Chinese.

To find out more about our range of metal products or to discuss customization and individual requirements please visit our website Here. For more updates on this and other exciting developments follow us on Facebook, Twitter & Linkedin. Or by using your smart device, scan the QR code below!

Dominick F.//SMC Editor

Adapted from: Frik Els. Images: National Geographic; Green Media;

Do Oil Discoveries Cause Conflict?

The conspiracy theorists will surely agree that oil and conflict is closely correlated – but do the statistics back it up? Economists have attempted to quantitative describe the relationship between discoveries of large oil fields and the probability of conflict.

Dube and Vargas studied this effect in Colombia and found that due to the concentration of oil profits being with the owners, extortion and kidnapping for ransom increased accordingly. This was described as a rapacity effect where it was in fact the money, not the oil that attracted conflicts.

Micheals found after conducting a worldwide regression that oil that it is actually the opposite –the increased wealth and opportunities from building the oil refinery actually decreased crime, as the potential criminals were less economically incentivized to commit crimes. The assumption that oil causes conflict stems from the anomaly that conflicts that arise due to suspected oil reserves rather than actual ones.

So in fact the building of oil drills and refineries can be beneficial to the surrounding areas, and the assumption they hurt an area was suggested to be untrue.

Shanghai Metal manufactures Salvage tools for oil drilling similar to those mentioned. To find out more, please visit our website, LinkedIn, Twitter, Facebook and Instagram. Or you could try our new mobile app by scanning our QR code.

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Copper Powers Green Transportation that Leads to Progressive Economic Impacts

In today’s society, transportation methods are finding ways to make altercations to manufacturing processes in order to become more sustainable and reduce their environmental footprint. Back in 1948, the average family car contained only 55 copper wires, amounting to a length of 150 feet. Fast forward to the present day and you will see more that 50 pounds of copper in a typical American made automobile. Today’s luxury cars contain some 1,500 copper wires, totaling to about one mile in length. This change shows the progress being made in the technology and manufacturing sector in order to but more fuel efficient cars on the road.

The Toyota Prius offers an EPA-estimated 50 mpg city and highway combined. According to fueleconomy.gov, compared to the average car, Prius could have saved an estimated 1.445 billion gallons of gas in the U.S. since 2000.

For example, the Toyota Prius, a full hybrid electronic mid-size hatchback, relies on copper wiring to power its nickel based batteries as well as computer chips to power the car and cut carbon emissions. Many other vehicles are catching on to the trend and future generations oh hybrid and electronic cars plan on using even more copper. Electronic motors with copper rotors are shown to offer advantages over other types of materials, including increased efficiency, smaller size, and lower operating costs.

boston-hybrid-taxi — Following the examples of New York and San Francisco, Boston has implemented sustainability plans to make all taxis hybrids by 2015.

It’s not just consumer cars – alternative forms of transportation, from buses to electronic trolleys and subways use an average of 2,300 pounds of copper apiece. Rare metals like copper are proven to be critical to our economy, green energy and technology. New high-speed trains with electronic traction engines use double the amount of copper than traditional electron trains. The International Copper Study Group revealed that the new engines use from 3 to 4 tons of copper. By supplying more high-speed trains to the marketplace, economies around the world as a whole will benefit. For example, as emerging economies experience an increasing middle class population, the demand for labor in the construction sector will increase. Once high-speed rail travel is put into place, cities across the globe will see lower highway congestion, lower emissions, and lower trade deficits stemming from less imports of crude oil.

Shanghai Metal Corporation offers copper alloys that are used in supplying overhead cables for high-speed trains. Visit our website for more information of our full line of products and on our commitment to building value across the globe. Be sure to join the conversation on our LinkedIn group, Facebook, and Twitter.

Sources: Copper Matters, The International Copper Study Group, Granite Investment Advisors, USA Today, Toyota.com

By: Kristie K. // SMC Editor

Эксперты: Санкции повлияют на экономику РФ, но пострадают и страны ЕС.

Страны ЕС предварительно договорились об экономических санкциях в отношении России, сообщает агентство Рейтер со ссылкой на дипломатический источник. Как отмечается, новые санкции затронут нефтяную сферу, оборону, поставки продукции двойного назначения и технологии. При этом санкции могут быть пересмотрены уже через три месяца.

Ущерб, который понесут Россия и Евросоюз от введения санкций, примерно равен, отмечают в ЕС.

“Санкции против России окажут влияние на всю мировую экономику, но не сразу”, – сообщают также эксперты британской газеты The Financial Times. Причем гораздо сильнее они затронут страны Евросоюза, нежели США, цитируют оценку аналитиков РИА Новости.

Ущерб от введения третьего пакета санкций для России составит для каждой стороны около 100 миллиардов долларов за два года, подсчитали в Евросоюзе.

В наибольшей степени от срыва контрактов с Россией пострадают страны южной части Европы и в первую очередь – Италия, сообщает Euobserver.сom. По подсчетам Комитета по восточноевропейским экономическим отношениям, санкции могут привести к сокращению 350 тысяч рабочих мест в Германии, которые напрямую зависят от российско-немецкого товарооборота, а это 80 миллиардов евро в год.

Egor T.//SMC Editor

In Economic Turmoil, Environment Remains Key

Even during periods of economic turmoil, the environment remains a key issue for our world.

By 2050, it is estimated that there will be two billion more people living in the world’s cities which, according to experts, will mean that world construction will grow by more than 70% and reach $15 trillion by 2025, outpacing global GDP. Part of the solution is to build with steel – 50% of steel is used in construction. With four people per house, this will mean providing 1,427 homes every hour, with most of them needed in Asia and Africa. How can such growth be made sustainable?

As most people are aware, steel is used in so many important applications, from bridges and other large constructions, trains and rail lines to industrial machinery, housing, offices, hospitals, cars, buses and bicycles, to name but a few examples. Steel delivers a number of unique environmental benefits, such as product longevity, recyclability, easy transportation and less raw material wastage. In addition, steel offers architectural and design flexibility due to its inherent strength, which allows large span distances and curves to be easily incorporated into designs.

Perhaps best of all, steel is 100% recyclable, without losing any of its properties or strength, and thus reducing the solid waste stream, which results in saved landfill space and the conservation of natural resources. Indeed, more steel is recycled each day than any other material. Even better, the steel industry as a whole has dramatically improved its energy efficiency over the past 30 years, cutting energy consumption by 50% per tonne of steel produced and substantially reducing carbon dioxide (CO2) emissions, also per tonne of steel.

The industry is always looking for ways to improve, and to that end a project is in place in the United States that explores the possibility of replacing carbon with hydrogen in blast furnaces. In addition, ULCOS, which stands for Ultra–Low Carbon Dioxide(CO2) Steelmaking, is a consortium of 48 European companies and organisations from 15 European countries that have launched a co-operative research and development initiative to enable drastic reduction in CO2 emissions from steel production. The consortium consists of all major EU steel companies, energy and engineering partners, research institutes and universities and is supported by the European Commission. The aim of the ULCOS programme is to reduce today’s CO2 emissions by at least 50%.

From a human health perspective, steel frames have proven ideal for the ‘healthy home’ concept. The incidence of asthma and sensitivity to chemicals is on the increase and steel frames have been used to achieve allergen-free and dust-free interiors. This requires techniques such as special sealing around windows, moisture barrier systems in the walls, extensive insulation, and whole house ventilation systems. Steel frames retain their original dimensions, which is a major factor in maintaining effective long-term sealing.

Steel is already being used to help manufacture lighter, more fuel-efficient vehicles as well as renewable energy infrastructure including wind turbines, solar installations, smart electric grids and energy-efficient housing and commercial buildings. Its economic benefits include its quick construction off-site, which means less site disturbance and waste, more usable floor space, e.g. thinner floors allowing for more stories in a building, the flexibility to re-configure buildings and steel has a long life with low maintenance, plus energy efficiency for lower operating costs.

Sited: WorldSteel

Ashley G. // Editor SMC

What Makes Stainless Steel A Sustainable Material?

People

The material, in its use or in its production process, respects the human being, especially in terms of health and safety. A sustainable material does not harm the people working to produce it, or the people who handle it during its use, recycling and ultimate disposal. Stainless steel is not harmful to people during either its production or use. A protective layer forms naturally on all stainless steels because of the inclusion of chromium. The passive layer protects the steel from corrosion – ensuring a long life. As long as the correct grade of stainless is selected for an application, the steel remains inert and harmless to the people who handle it and the environment. These characteristics have made stainless steel the primary material in medical, food processing, household and catering applications.

Planet

The emission footprints of the material, especially those related to carbon, water and air, are minimised. Reuse and recyclability are at high levels. The material has low maintenance costs and a long life, both key indicators that the impact of the material on the planet is at the lowest levels possible. The electric arc furnace (EAF), the main process used to make stainless steels, is extremely efficient. An EAF has a low impact on the environment in terms of both CO2 and other emissions. The EAF is also extremely efficient at processing scrap stainless, ensuring that new stainless steel has an average recycled content of more than 60%. Stainless steels are easily recycled to produce more stainless steels and this process can be carried on indefinitely. It is estimated that about 80% of stainless steels are recycled at the end of their life. As stainless steel has a high intrinsic value, it is collected and recycled without any economic incentives from the public purse.

Profit

The industries producing the material show long-term sustainability and growth, provide excellent reliability and quality for their customers, and ensure a solid and reliable supply-chain to the end consumer. Choosing the right stainless steel grade for an application ensures that it will have low maintenance costs, a long life and be easy to recycle at the end of that life. This makes stainless an economical choice in consumer durables (such as refrigerators and washing machines) and in capital goods applications (such as transportation, chemical and process applications). Stainless steels also have better mechanical properties than most metals. Its fire and corrosion resistance make stainless a good choice in transportation, building or public works such as railways, subways, tunnels and bridges. These properties, together with stainless steel’s mechanical behaviour, are of prime importance in these applications to ensure human beings are protected and maintenance costs are kept low. Stainless also has an aesthetically pleasing appearance, making it the material of choice in demanding architectural and design projects.

Taking into account its recyclability, reuse, long life, low maintenance and product safety, the emissions from the production and use of stainless steels are minimal when compared to any other alternative material. A detailed and precise analysis of the sustainability of stainless steel makes the choice of stainless a logical one. This might explain why, as society and governments are becoming more conscious of environmental and economic factors, the growth in the use of stainless steel has been the highest of any material in the world.

Sited: WorldStainless

Ashley G. // Editor SMC

Работа Уралвагонзавода и Caterpillar по созданию совместного предприятия не будет продолжена из-за санкций США

Работа Уралвагонзавода и Caterpillar по созданию совместного предприятия не будет продолжена из-за санкций США в отношении УВЗ, сообщает ИТАР-ТАСС.

“Проект пострадает, если санкции будут продолжены. Мы на холде (от англ. hold — «держать») стоим, потому что мы должны были его реализовать на прошлой неделе, но из-за того что ввели санкции, все в стопоре.” – Олег Сиенко, генеральный директор УВЗ.

Речь идет об очередном пакете документов по созданию совместного предприятия с Caterpillar, который планировали подписать еще на прошлой неделе. По словам Сиенко, в августе должны были «привезти два локомотива под сертификацию, их надо было сейчас начинать грузить — эта ситуация остановлена».

Сейчас УВЗ ждет от американских партнеров информацию, как они видят дальнейшую реализацию проекта и, скорее всего, получат ее в начале августа.

Напомним, США ввели дополнительные санкции против России из-за ситуации на Украине. В отношении УВЗ вместе с другими предприятиями российской оборонки ввели блокирующие санкции, которые предусматривают полное прекращение с ними каких-либо контактов со стороны США и замораживание их активов в американских банках.

Локомотивостроительное подразделение Caterpillar — Electro-Motive Diesel (EMD) и Уралвагонзавод в 2013 году подписали протокол о намерениях, касающийся разработки и производства магистральных локомотивов в РФ. Предполагалось, что СП создадут на базе Челябинского тракторного завода, входящего в УВЗ. Не менее половины всей продукции будет производиться в России: например, рамы, кабины и элементы управления для нового локомотива.

Egor T.//SMC Editor

日本不锈钢产业进口

不锈钢除了强度，耐腐蚀性以外，同时还兼备着耐热性，加工型强等等特点。在另一方面，作为百分百可重复利用的材料不锈钢被高度评价，也被广为注目。在个人生活，社会，环境等等各种各样的领域中，对不锈钢的需要在逐渐扩大，生产量在50年间增长了30倍以上。可以说，具有如此多优异特性的不锈钢的普及，无论对现在，或者未来也好都是相当有益的。

中国的不锈钢生产量在过去的十二年中有了飞速的发展，在世界不锈钢产业中的生产比重甚至占据了将近一半。

中国的不锈钢产业的每年生产量已经达到了1600万吨左右（2012年），而且还在持续增长。其他国家的不锈钢产量并没有显著增加，可以说过去12年左右的时间内，世界不锈钢生产量的增长基本上来源于中国。

日本最近几年的不锈钢生产量呈现出一个不稳定的趋势，变化幅度相对较大。特别是东京大震灾（2011年）以后持续下降。

日本不锈钢热间压延钢材生产量

年月／形状	形鋼棒鋼平鋼	線材	管材	条鋼類小計	鋼板類	単位：トン生産合計
2009暦年	117.728	167,924	203,451	489,103	1,856,863	2,345,966
2010暦年	187,723	249,999	246,887	684,609	2,399,514	3,084,123
2011暦年	186,737	230,882	266,805	684,424	2,245,894	2,930,318
2012暦年	163,139	222,934	277,132	663,205	2,159,615	2,822,820
2012年9月	13,063	19,442	22,238	54,743	182,253	236,996
10月	13,164	18.668	27,250	59,090	180,780	239,870
11月	12,187	16,801	20,049	49,037	165,044	214,081
12月	11,455	16,360	22,159	49,974	165,331	215,305
2013年１月	11,479	17,360	21,572	50,411	176,298	226,709
2月	13,841	17,299	21,963	53,103	169,839	222,942
3月	15,551	20,683	24,073	60,307	178,679	238,986
４月	14,543	15,767	21,460	51,770	178,572	230,342
5月	18,192	20,098	15,267	53,557	178,438	231,995
6月	15,858	19,583	25,553	60,994	188,792	249,786
７月	15,433	20,323	24,277	60,033	179,417	239,450
8月	12,344	19,470	27,445	59,259	172,902	232,161
9月	15,244	22,053	24,433	61,730	190,589	252,319
10月	14,718	21,858	27,262	63,838	185,915	249,753
11月	16,360	14,293	21,603	52,256	177,841	230,097
12月	15,290	18,066	28,260	61,616	191,213	252,829
2014年１月	16,403	19,117	26,400	61,920	192,452	254,372
2月	17,437	19,322	25,608	62,367	169,185	231,552
3月	19,717	22,498	27,391	69,606	198,473	268,079
4月	17,338	17,687	28,502	63,527	198,808	262,335
前　月　比(%)	87.9	78.6	104.1	91.3	100.2	97.9
前年同月比(%)	119.2	112.2	132.8	122.7	111.3	113.9
累計 13.1～月	55,414	71,109	89,068	215,591	703,388	918,979
累計 14.1～月	70,895	78,624	107,901	257,420	758,918	1,016,338
前年同期比(%)	127.9	110.6	121.1	119.4	107.9	110.6
累計 13.4～月	14,543	15,767	21,460	51,770	175,572	230,342
累計 14.4～月	17,338	17,687	28,502	63,527	198,808	262,335
前年同期比(%)	119.2	112.2	132.8	122.7	111.3	113.9

截止到2014年4月，每个月的生产量都有被详细记录。2013年的生产量相对于2012年已经有小幅度的上升，呈现出反弹的趋势。而2014年的前年同期比为113.9%，而且每个不同类型的不锈钢生产量都有上升。因此可以据侧2014年不锈钢的生产量相对于2012年也会有一定幅度的上升。可能和东京灾后重建需要钢材有关。

不同行业对不锈钢钢板的订单量

用途／年	2011年	2012年	2013年	2014年4月	2014年5月	単位：トン 1月～
建設用	86,928	84,145	95,740	7,559	7,617	42,423
産業機器用	85,965	74,526	91,115	6,547	7,534	38,284
電気機器用	73,269	65,207	62,668	5,482	4,676	26,640
家庭業務機器用	130,688	126,980	140,254	11,552	12,694	61,387
船舶用	14,152	17,959	15,487	3,742	2,833	13,565
自動車用	291,614	284,636	314,668	22,941	22,495	114,831
鉄道車両用	66,484	5,521	5,376	726	437	3,048
その他輸送用機器	1,285	1,212	1,926	36	79	465
容器用	3,434	3,588	4,853	290	432	1,948
諸成品用	15,207	14,555	17,842	1,330	1,205	6,309
次工程用	14,346	13,490	12,430	851	1,058	5,487
再加工用	1,397	1,324	1,490	191	200	782
販売業者向	268,036	306,195	287,047	24,478	25,824	132,839
鋼材製造用	66,743	72,425	67,513	6,673	6,985	32,571
内需計	1,059,548	1,071,763	1,118,409	92,398	94,069	480,579
輸出	417,803	379,069	385,979	35,813	35,503	168,544
合計	1,477,351	1,450,832	1,504,388	128,211	129,572	649,123

对不锈钢钢板需求量最大的几个产业分别是，汽车行业，家庭用的电器以及贩卖业者。而这几个行业也是日本汽车，电子产品，家用电器等方面的传统优势行业。

相对于日本每年对不锈钢的消费量，进口不锈钢方面的占有率很少。过去几年就算有些变化，但从
总量上来可以说是微乎其微，向日本出口不锈钢确实有一定的困难。国内的消费量基本通过自足的方式，而且具有相当的出口能力。

来源：http://www.jssa.gr.jp/contents/stats/yields/

Aikawa Z.//SMC Editor

Ethiopia; Export Extraordinaire

Although it is the second most populous country in Sub-Saharan Africa, Ethiopia has the lowest ratio of merchandise exports to GDP in the world. Historically, Ethiopian industry has been unable to develop into a world player, held back by a variety of economic problems. This is now changing however, as a World Bank report published this week reports positive statistics.

Ethiopia’s development model is partly inspired by the East Asian experience that realised high economic growth through the development of new export sectors and government-led development investments. Benefiting from a global commodities price windfall in the 2000s, Ethiopian exports grew at one of the highest rates in Sub-Saharan Africa. In tandem, GDP grew 9.7% in 2012/13.

According to this study, a large part of this comes from the comparative advantage Ethiopia possesses in over 80 goods and services in Africa. Many of these, such as horticultural goods, sesame seeds, soy beans and footwear, have seen considerable export growth over the last year. Ethiopia’s nascent manufacturing industries are also beginning to grow rapidly from a low base, after being positively affected by changes in the global trade regime and
the introduction of new trade preferences.

Exports and imports of goods and services as a share of GDP increased from 37.5 percent in 2001/02 to 48.7 percent in
2011/12. This figure remains low, though, considering the projected growth curve, so it is safe to assume that it can only go up from here. The major investor in Ethiopia today is China, which which the value of trade topped $200bn last year.

Indeed, China is completing changing the dynamics of trade within the entire region. Premier Li toured 4 major East African nations last year, where he renewed an offer of $20bn in loans to Africa between 2013 and 2015. In Ethiopia, Chinese firms have invested heavily in recent years with their worth swelling well over $1bn in 2014, according to official figures. Beijing is also a key partner in Ethiopia’s bid to expand infrastructure such as roads, railways and telecom services.

The growth of Ethiopia thus, looks to signal a change in global trade patterns, with a new axis of development avoiding Western nations altogether. Rarely has such growth been sustained, yet the future looks bright for now, particularly in light of the slow and asymmetric recovery in the EU & US. The core of this growth will require steel, particularly the construction industry, which accounted for 25% of all economic activity in China over the last 10 years. Chinese steel firms eager to develop relations with this part of the world to fulfill this promise mutual growth.

For more information about SMC, follow us on twitter @Shanghai_Metal

Lloyd P.//SMC Editor

Aluminum Sector Analysis in Brazil

Growing demand for aluminum in Brazil is powered by the packaging, transportation and construction industries. Aluminum foil is used in flexible packaging and many consumer products are making the transition in packaging material, leading to greater demand across the world. Increases in demand for transportation and construction needs are powered by the 2014 World Cup and the Rio 2016 Summer Olympics, where extrusion-related programs include stadiums and airports. The Brazilian Aluminum Association (ABAL) technical director Arton Filletti says “We also see great potential for extrusions in other modes of people transport, such as railways, urban surface trains and subways.” He also sees potential in the shipping and offshore industry.

Four industries account for three quarters of aluminum consumption in Brazil. — Four industries account for three fourths of aluminum consumption in Brazil: packing, transportation, construction and electricity.

Aluminum is on the rise in the auto industry and has plenty of room for growth in Brazil. In 2013, vehicles produced domestically have average aluminum content per vehicle at around 110 pounds. In leading markets such as the U.S. and Europe, average aluminum content per vehicle exceeds 300 pounds. Inovar Auto is a government program established to boost vehicle technology innovation should raise demand by the industry as well as tax breaks for cars that reach a set level of energy efficiency. Demand should increase for aluminum since it is known to make cars lighter and run more efficiently.

Last year, Brazil dropped to 8th from 6th largest producer globally as production of primary aluminum fell 9.2%. The main barrier is poor competitiveness in the cost of electricity. The loss of competitiveness will mean that Brazil will have to become a net importer of aluminum. The People’s Republic of China remains at the top of the list and Shanghai Metal Corporations is a leading manufacturer in Aluminum sheets and plates committed to providing value-added quality products with competitive pricing and prompt delivery. Our group of competent engineers develops and improves our products using specially design and advanced equipment to meet the special needs to our clients. To find out more about our wide variety of products check out our website here.

Sources: The Brazilian Aluminum Association (ABAL), Bain & Company

Kristie K.//SMC Editor