Bluescope Steel Dropping Overtime etc

[Gee Cee]

My wife was talking to a friend over the weekend and commenting about Christmas spending. The womans husband works for Bluescope steel. For at least the past 5 years he has been working as many double shifts as he wants as well as weekends. He even gets phoned if on holidays and asked if he can just do a shift so the order can be shipped ASAP. Now he has been told that overtime is almost going to be zero and no weekend shifts. As well they want staff to take any annual leave over christmas / new year. Things will be re-assessed in the new year.
So the woman was saying that they would be having a lean christmas as they had no money in the bank and had just re-mortgaged the house to buy a new boat and car.

I had to ask like what happened to the 5 years of 6 figure income?
Then I remember our last visit to their house. X boxes, plasmas, stainless everything, I pods and apple phones for each child etc, etc , etc.

Then she said to my wife "Your so lucky you have got property"

(Wish I had had the 5 yrs of 6 figure income as well)

Gee Cee
Greg

 

[Gee Cee]

Did this post

 

[lizzie]

yes - but there is not much to say except shake one's head and say "tsk tsk".

and mutter under one's breath "bloody idiots, welcome to the real world".

 

[joe jo jo]

Yes, I see a lot of $200 - $300k jobs and the individuals save literally nothing (even without home loan debts somtimes). Better yet, they manage to rack up $30 - $40k credit card debt (consistently). I saved more than them when I was at uni

 

[The Fence]

Goodness gracious me....tsk tsk indeed....

I was reading that post and thinking halfway thru these people have saved up for the bad times (after doing all that overtime)....not to be....

So they are the friends you have to show you the way Greg.....?

The way NOT to do it...!

 

[Gee Cee]

Downturn

The other MAIN point I was TRYING to make here is that if he is at the helm of output for Bluescope steel production. The manufacturing bit. And they are cutting shifts, overtime, production etc. Telling people to take leave and re-assessing in January.
WHAT does that say about exports, local sales and pre orders for steel. Both now and into 2009

 

[Gee Cee]

Hi Thorpey. At times I just get sick of trying to show people the way. Especially older people.Some younger people will listen and actually take advise
Otherwise it is like you are trying to convert them to a new cult. So basically now I just say nothing unless they are REALLY interested in changing.

Sad but just how it seems
So I hope at least some of my posts here get a bit of +ve attention

Gee Cee

Greg

 

[plusnq]

The other MAIN point I was TRYING to make here is that if he is at the helm of output for Bluescope steel production. The manufacturing bit. And they are cutting shifts, overtime, production etc. Telling people to take leave and re-assessing in January.
WHAT does that say about exports, local sales and pre orders for steel. Both now and into 2009

Hi GeeCee

I heard an interesting analyst report that suggested that China will use as much of its reserves from now into early next year for two reasons. One is obviously that they have inventory to work through and the other is that they are hoping to negotiate the next round of contracts from a stronger position early next year.

It sure is interesting times.

Cheers

Shane

 

[NorwegianBlue]

On the other hand, a lot of China's internal ore production was very high cost to produce, and very low grade (I heard < 50% !) and can't turn a profit when IO prices are low. In some areas, there has been a 100% shutdown in production.

So the lower cost producers like RIO will get a big boost in market share. They might not even have to scale back at all.

 

[Sunfish]

I heard an interesting analyst report that suggested that China will use as much of its reserves from now into early next year for two reasons. One is obviously that they have inventory to work through and the other is that they are hoping to negotiate the next round of contracts from a stronger position early next year.

Vale has dropped it's demand for a 12% increase in iron-ore price and even agreed to pay they freight from Brazil to China.

Stocks of ore in Chinese ports hit record of nearly 90 million tonnes, equivalent to over two months of imports.

Capesize freight rates on the key route between Brazil and China have fallen to a six-year low of $10.6 per tonne by the end of October, down from above $108 a tonne in June, due to a drop in shipments of iron ore to China.

The ship owners must have been raking it in.

 

[Sunfish]

a lot of China's internal ore production was very high cost to produce, and very low grade (I heard < 50% !)

And is very polluting to process. China is starting to notice such things.

 

[willair]

I had to ask like what happened to the 5 years of 6 figure income?
Then I remember our last visit to their house. X boxes, plasmas, stainless everything, I pods and apple phones for each child etc, etc

Yes it does make one think some times,i know people with only 20 cents in their back pocket,to plumbers with more money then they know what to do with ,but most live for today spend every cent,new cars boats o-s trips all the mods and "CONS"in their houses,and it is very hard to measure exactly what effect changing prices will have on their well-being,every time i try and tell them their is another way to invest besides pumping up your super,they just laugh at me,after all they all think their super is safe
but when i start with that line about investing no one wants to know, I don't even try anymore after all not many come out of a boom period at the end of the boom better off the they were at the beginning or do they,btw bluescope is not the only company to start to slow,you only have to look at the flash ego-cars and high end boats that are starting to flow through the auctions houses in vast numbers from repo companies and the numbers are huge and this is only the start,just like 1991 all over again only this time round the $$$ numbers are a lot different..imho willair..

 

[lizzie]

onesteel is dropping 150 staff from it's whyalla steelworks - but only thru natural attrition. something it was planning to start doing next year anyhow, but they've bought it forward 6 months.

don't know about the other steel manufacturers.

 

[BayView]

My wife was talking to a friend over the weekend and commenting about Christmas spending. The womans husband works for Bluescope steel. For at least the past 5 years he has been working as many double shifts as he wants as well as weekends. He even gets phoned if on holidays and asked if he can just do a shift so the order can be shipped ASAP. Now he has been told that overtime is almost going to be zero and no weekend shifts. As well they want staff to take any annual leave over christmas / new year. Things will be re-assessed in the new year.
So the woman was saying that they would be having a lean christmas as they had no money in the bank and had just re-mortgaged the house to buy a new boat and car.
I had to ask like what happened to the 5 years of 6 figure income?
Then I remember our last visit to their house. X boxes, plasmas, stainless everything, I pods and apple phones for each child etc, etc , etc.

Then she said to my wife "Your so lucky you have got property"

(Wish I had had the 5 yrs of 6 figure income as well)

Gee Cee
Greg

My stomach is hurting.

But seriously; it's very sad that they have no education on money management and/or investing.

But whaddya do? if you try to say something, you'll probably offend them.

I've given up trying to help others (away from this forum) with my little bit of knowledge. If they ask I'll help.

 

[Aaron Sice]

sell the boat.

sell the car.

take a trip to cashies and offload all your PS3s.

have a merry xmas.

still - i wonder when dropping steel prices will have a flow on effect into the building industry....? because that triple skin corner lintel i put up cost over $2000.

 

[timmyboy]

Hi GeeCee

I heard an interesting analyst report that suggested that China will use as much of its reserves from now into early next year for two reasons. One is obviously that they have inventory to work through and the other is that they are hoping to negotiate the next round of contracts from a stronger position early next year.

It sure is interesting times.

Cheers

Shane

interesting indeed as we all wait to see what happens.

if the analyst is correct, at least we know that china is going to continue to purchase product, albeit from a stronger position buyer wise - but that is just good business isn't it.

the key is that they DO buy. Cos if they are, we're selling and continuing on our merry, if not as affluent, way.


Tim

 

[aspect]

My wife was talking to a friend over the weekend and commenting about Christmas spending. The womans husband works for Bluescope steel. For at least the past 5 years he has been working as many double shifts as he wants as well as weekends. He even gets phoned if on holidays and asked if he can just do a shift so the order can be shipped ASAP. Now he has been told that overtime is almost going to be zero and no weekend shifts. As well they want staff to take any annual leave over christmas / new year. Things will be re-assessed in the new year.
So the woman was saying that they would be having a lean christmas as they had no money in the bank and had just re-mortgaged the house to buy a new boat and car.

I had to ask like what happened to the 5 years of 6 figure income?
Then I remember our last visit to their house. X boxes, plasmas, stainless everything, I pods and apple phones for each child etc, etc , etc.

Then she said to my wife "Your so lucky you have got property"

(Wish I had had the 5 yrs of 6 figure income as well)

Gee Cee
Greg

Yes, when the OT is freely available it ALL goes on rubbish.
Similarly when credit is cheap, people take it too the max but eventually the piper has to be paid.

 

[Ausprop]

have a merry xmas.

still - i wonder when dropping steel prices will have a flow on effect into the building industry....? because that triple skin corner lintel i put up cost over $2000.

we can but dream hey mate? a drop in steel prices would have a huge impact for our business.

 

[Gee Cee]

Bluescope Orders Down

Lunch BBQ today. Friends comments,

We Were rolling steel 7 days a week / 3 shifts about 12 weeks back.

Now only 3 shifts a week. And on dayshift. No future orders at present. (What does that do to dividends and share prices?)

Take all annual leave and other leave over X/mas period

All will be Reviewed in light of the world and china market in early 2009

 

[craigb]

I had IT freinds just like it the very same that baged IP,s and the ideas of such, these people are FINANCIALLY ILITERATE serves them right!! tough tittie's
What do china do with steel other than build skyscrapers each week and export cars??
if no one is buying what are they going to do with iron ore??