U.S. Import Prices Rise 1.0% In May

The prices of U.S. imports rose 1% in May after declining by 2.6% and 2.4% the previous two months, “the largest 1-month advance since the index increased 1.0 percent in February 2019,” the BLS reported. “In May, the advance was driven by higher fuel prices; nonfuel prices also increased. Despite the May increase, the price index for U.S. imports decreased 6.0 percent from May 2019 to May 2020.

Alcoa begins process of layoffs at Spanish smelter：Alcoa will begin the formal consultation process toward laying off employees at its San Ciprián smelter in Spain. The process will begin June 25, 2020, the company said.

“On May 28, 2020, Alcoa launched an informal process with the workers’ representatives to discuss significant and unsustainable circumstances at the aluminum plant,” Alcoa said. “The Company now intends to begin the formal 30-day consultation period with the Works Council to achieve the best possible outcome for the Company and its workforce.

The Company envisions a restructuring for the aluminum plant that retains a portion of the casthouse in operation. A collective dismissal could potentially affect up to 534 employees of the aluminum plant. No final decisions will be made until the mandatory, formal consultation process is complete.”

India wants energy producers to use domestic steel. According to Reuters, the Indian government is urging domestic oil and gas producers to use Indian steel in an effort to boost the economy. Like other countries struggling with the health and economic fallout of the coronavirus pandemic, India’s economy is expected to contract by 5% this fiscal year.