IN THIS ISSUE:
* ADVOCACY
NAM Committee Endorses H.R. 1498
LIFO Coalition Responds to Negative Testimony
* EDUCATION
Strategic Metals Management Materials Now On-Line
MetalLearn Application Fixes Announced
* CHAPTERS
New England Chapter Awards Two Scholarships
* BRIEFINGS
Short Items of Interest to MSCI Members
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ADVOCACY
NAM Committee Endorses H.R. 1498
By a vote of 75-46, members of the National Association of Manufacturers, at a meeting of the group’s International Economic Policy Committee, urged support for the China Currency Act, H.R. 1498 and endorsed the idea that currency manipulation is an illegal export subsidy.
The vote marks a major potential turnaround in NAM’s stance on Chinese currency manipulation and underscores the split in that association between domestic manufacturers harmed by illegal trade practices and multinational corporations that do business in China and who thus benefit from them.
The question now goes to NAM’s executive committee, where its future is uncertain. In addition, NAM President John Enger plans to meet with Bush administration officials to discuss possible new approaches to deal with Chinese currency manipulation.
NAM has closely followed Bush administration policy on the Chinese currency question, steadfastly refusing to support legislation, like H.R. 1498, that would pressure China to respond to concern about its deliberately undervalued currency or face countervailing duties on its exports to the United States. Although some observers have criticized the legislation as protectionist or a futile effort to reduce the U.S. trade deficit with China, for most manufacturers the issue is whether effective steps will be taken to respond to illegal trade practices.
Since last July 21, when China said it ended its rigidly pegged exchange rate of the yuan of 8.28 to the U.S. dollar, the value of that currency has risen just 1.4% because of restrictions China has placed on its trading range. No hearings have been held on H.R. 1498, originally introduced by Rep. Duncan Hunter (R-California), chairman of the House Armed Services Committee, and Rep. Tim Ryan (D-Ohio), although 169 House members are now co-sponsors. Ryan has requested a hearing on the legislation.
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ADVOCACY
LIFO Coalition Responds to Negative Testimony
The LIFO Coalition, a group of trade associations organized by the National Association of Wholesaler-Distributors (NAW) to support last-in, first-out accounting, has disputed Senate Finance Committee testimony from a University of Connecticut professor. MSCI is a member of the coalition.
The coalition presented the committee with a memorandum from accounting author and lawyer Leslie J. Schneider that addresses “seriously inaccurate” information from Professor George A. Plesko.
The materials have been posted on the MSCI web site.
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EDUCATION
Strategic Metals Management Materials Now On-Line
Registration materials for MSCI’s new Strategic Metals Management executive education program have now been posted on line.
Under a procedure developed to respond to demand for the first Strategic Metals Management class, MSCI will accept registration forms by fax from July 1 through July 15. If the first class is oversubscribed, a lottery will be conducted, with the outcome announced by August 1.
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EDUCATION
MetalLearn Application Fixes Announced
MSCI has announced a plan to convert its MetalLearn course to a new software application in order to fix technical problems caused by recent changes to Microsoft's Internet Explorer web browser.
Under the plan, MetalLearn modules will be converted on a weekly schedule that begins July 17 and ends on August 23.
Not all users have been affected by the technical problem, which causes MetalLearn to respond very slowly. MetalLearn will continue to operate during the changeover period for those that have not been affected.
In addition to technical changes, MSCI will also update the look and feel of the training program.
Please address questions to Ann Zastrow, vice president, education,
847-485-3012 (azastrow@msci.org) ; Kathy Spellman, vice president, education, 847-485-3018 (kspellman@msci.org) ; or Chris Marti, vice president, technology, 847-485-3009 (cmarti@msci.org) .
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CHAPTERS
New England Chapter Awards Two Scholarships
MSCI’s New England Chapter has awarded $2,500 scholarships to two students with a parent who works for an MSCI and chapter member company.
One scholarship goes to Shannon R. Phillips, who is pursuing a B.S. degree in nursing from Villanova University. Phillips has earned a 3.5 GPA, has formed the Villanova Irish Dance Club and is a member of Student Nurses of Pennsylvania. Her father, Gerard Phillips, is materials manager for Olympic Steel in Milford, Connecticut.
The second scholarship goes to Danielle Soucy, a Bristol Eastern High School student in Bristol, Connecticut. She will attend Naugatuck Valley College and plans to become a nurse anesthetist, a career choice inspired by her brother, who was born with cerebral palsy. Her father, Alec Armstrong, is a plate saw operator for Yarde Metals in Southington, Connecticut.
Congratulations, both!
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BRIEFINGS
CONSOLIDATION TO IMPACT JAPAN: President Akio Mimura of Nippon Steel Corp. told shareholders this week that the Mittal-Arcelor combination will trigger “the second and third waves of reorganization, eventually impacting Japan.” Nippon Steel is concerned about the future of its 2001 technology agreement with Arcelor SA, signed with an eye towards supplying Japanese auto plants in Europe. Nippon Steel is reported to be “troubled” by transfer of that agreement to Mittal Steel’s control. Already, Toyota says that just in case, it is preparing steel supply contingency plans.
INDIA REDUCES ORE EXPORTS: A new five-year agreement for iron ore shipments from India to Japan and South Korea reduces the maximum amount of ore available annually. Under the new agreement, the state-run National Mineral Development Corp. (NMDC) will ship between 2.7 million tons and 6.8 million tons, down from a range of 9.6 million to 16.5 million tons under the previous five-year pact. The old agreement included shipments to China, which now will be handled for India by a trading company, Mmtc.
INDIANA FOR HONDA: Honda Motor Co. plans to build its sixth North American car plant in Greensburg, Indiana. The company plans to build a $400 million factory capable of producing 200,000 vehicles annually, raising its total North American capacity to 1.6 million units. Operations are expected to begin in 2008.
GERDAU IN PERU: Gerdau, the Brazilian steelmaker, has won a “50% plus one share” stake in Siderperú, Peru’s largest steel company, in an auction held by Peruvian state investment agency Proinversión. Gerdau will pay $60.6 million for the controlling stake in Sideperú, which has an annual production capacity of 450,000 tons.
BED RACE FUNDRAISER: The annual Bed Race for Charity sponsored by Yarde Metals raised more than $30,000 for two children’s charities in Connecticut. More than 30 two-person teams raced through an obstacle course on the company’s grounds in Southington, Connecticut. The “NAPCAR” event also included a classic car show, children’s activities and an appearance by Jason Pohl and Jim Quinn of Orange County Choppers. Checks for $16,500 will be sent to Connecticut Children’s Medical Center and Main Street Children’s Fund.
MILLS TO COOPERATE: A strategic partnership that could lead to an eventual merger has been reached by Shagang Group and Fosun Group, both eastern China steel producers. Shagang, with annual steel production of 15 million tons, is based in Zhangiagang, a Yangtze River port city. Fosun controls Nanjing Iron & Steel United Co. in Jiangsu Province.
VIET ALUMINUM MATERIALS PLANT: Nippon Light Metal Co. and Sojitz Corp have joined with a local chemical manufacturer to explore construction of an aluminum hydroxide plant in Vietnam. Nippon Light said Vietnam has the third-largest bauxite reserves in the world. The plant is to be built in Lam Dong Province, near Ho Chi Minh City.
GALVANIZE LINE ACCELERATED: Production will begin in January, two months early, at a new galvanized steel sheet line under construction at JFE Steel Corp.’s Fukuyama plant at its West Japan Works. The line will have an annual capacity of 600,000 tons, all for automotive use. JFE decided to accelerate production because of strong demand.
COURT BRIEFING: Winston & Strawn, MSCI’s law firm, has issued a briefing on a Supreme Court decision on workplace retaliation. Click here to view it.
BENGALI SWEETS: Indian newspapers were abuzz this week about the triumph of Lakshmi Mittal in finally subduing Arcelor. But also of top interest was word from Munna Maharaj, the Kolkata (Calcutta) super chef, that Mittal wants Bengali sweets at every catered event. Hosts and hostesses note: Sweets such as misti doi (sweet curd) and rosogollas nestled in syrup are said to be Mittal’s favorites.
UPDATE YOUR MSCI DATABASE LISTING! All members are encouraged to update their listing in the MSCI database by going to the MSCI web site.
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The Metals Service Center Institute, Rolling Meadows, Illinois, provides 'News from MSCI' as a service to its members. Please see the MSCI web site at www.msci.org for more information about the Institute, its programs and its members. Comments, suggestions, and contributions are welcome. Please submit them to news@msci.org, or fax them to 503-646-9108, Attn: Steve Weiner.
