Steel consumption has dramatically shifted from the developed world to the emerging world. Today, China is the largest consumer, accounting for almost half the world’s steel.
Monetary policy and the resultant interest rates are a key driver for the steel industry. Monetary policy affects the steel industry in several ways.
A key metric to watch with commodities like steel is per-capita consumption. U.S. consumption of 306 kilograms (or kg) is better than the world average, which stands at 217 kg.
Steel serves as a raw material for various industries. You and I don’t consume the crude steel that’s produced in factories directly.
Iron ore, steel scrap, and coal are three main raw materials for steelmaking. Steelmaking is a raw material–intensive business.
It shouldn’t surprise you that steel consumption fell by as much as 50% in some countries during the recession of 2008.
A sub-index for export orders edged up to 50.3 in June from 49.3 in May.
For the first four months of 2014, China added 6.48 million cars to its passenger fleet—an increase of 10% from the same period last year.
Generally, a lower multiple means the stock is undervalued, but with United, the lower multiple combines with low margins because of high fuel and labor costs and lowers yields compared to peers.
United operates in a highly competitive industry. With operations concentrated in the U.S. and strong competitors, there’s a need to improve cost efficiency and profitability.
EV and EBITDA can be adjusted to take into account the impact of operating leases, or chartered-in vessels.
United has partnered with Aviation Partners Boeing (APB) to launch the Split Scimitar winglet. The new winglet is expected to save more than 45,000 gallons of fuel per aircraft per year.
DryShips expects that iron ore production will increase in the next three years, which will increase the demand for transportation.
United has achieved 83.28 million gallons of fuel savings and 809,700 metric tonnes of reduction in CO2 (carbon dioxide) emission through technological improvements.
As compared to its earlier periods, DryShips’ (DRYS) value to loan compliance situation has improved significantly.
Knowing how an aircraft operates and the forces that affect the aircraft’s flight will help you understand the strategies airlines use to improve their aircraft’s fuel efficiency.
Based on historical data, DRYS dry bulk carrier fleet calendar days are estimated at ~13,500, while total calendar days for the tanker fleet is 100%.
For the remainder of 2014, open days for its fleet stands at 64% of anticipated ownership days, 85% in 2015, and 90% in 2016 offering substantial upside potential for revenue.
The airline industry has had a history of problems due to labor unions. Employee stock option plans (ESOPs) were used in the airline industry to overcome the adverse effects of unions.
In regards to the management agreement, TMS Bulkers is entitled to a fixed management fee of $2,069 per vessel, per day, payable in equal monthly installments in advance.