Donald Trump shoots himself in the other foot: Steel layoffs in US mount due to falling production

[Denizen]

yep and losing.

Well you democrats want to lose lol but we are not losing. China is losing more then is, so is Iran.. if you don’t suooort America just renounce your citizenships.. hehe

Both sides losing doesn’t mean we win. Are you really that dense?

I’m pretty sure if Democrats weren’t obstructionist with China the deal would have been done.. its your doing not trump, now we have to wait until after the election for trump to again fix democrats doing..

You are deluded. No, you are one-dimensional, thick.

TDS

You need to reenergize yourself from Trump's lies. The truth is unhealthy for you.

 

[Jitss617]

Well you democrats want to lose lol but we are not losing. China is losing more then is, so is Iran.. if you don’t suooort America just renounce your citizenships.. hehe

Both sides losing doesn’t mean we win. Are you really that dense?

I’m pretty sure if Democrats weren’t obstructionist with China the deal would have been done.. its your doing not trump, now we have to wait until after the election for trump to again fix democrats doing..

You are deluded. No, you are one-dimensional, thick.

TDS

You need to reenergize yourself from Trump's lies. The truth is unhealthy for you.

You’re insane nobody agrees with you get a life move out of America crawling to your cave and just shut the fuck up for four more years.. or keep crying lol

 

[Denizen]

Both sides losing doesn’t mean we win. Are you really that dense?

I’m pretty sure if Democrats weren’t obstructionist with China the deal would have been done.. its your doing not trump, now we have to wait until after the election for trump to again fix democrats doing..

You are deluded. No, you are one-dimensional, thick.

TDS

You need to reenergize yourself from Trump's lies. The truth is unhealthy for you.

You’re insane nobody agrees with you get a life move out of America crawling to your cave and just shut the fuck up for four more years.. or keep crying lol

Based on your experience? It didn't work for you.

 

[Jitss617]

I’m pretty sure if Democrats weren’t obstructionist with China the deal would have been done.. its your doing not trump, now we have to wait until after the election for trump to again fix democrats doing..

You are deluded. No, you are one-dimensional, thick.

TDS

You need to reenergize yourself from Trump's lies. The truth is unhealthy for you.

You’re insane nobody agrees with you get a life move out of America crawling to your cave and just shut the fuck up for four more years.. or keep crying lol

Based on your experience? It didn't work for you.

I’m with the majority of America voted for Trump

 

[tyroneweaver]

Everything Donald Trump has touched since January 2017 has turned brown and smelly.

Donald Trump levied tariffs on steel to create more jobs in the steel industry. However, the steel industry has lost jobs and is closing steelworks.

On top of that, steel prices went up to other US manufacturers who are now paying more for steel which has contributed to the downturn in US industries that use steel.

The negative effects of Donald Trump's tariffs prove that tariffs do not create jobs, they just raise prices and reduce demand.

"Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect."

Let us pray that Donald Trump's damage to the US and world economy is only temporary and will recover after Donald Trump's impeachment and expungement.

Steel layoffs in US mount due to falling production and trade war

Steel layoffs in US mount due to falling production and trade war
By Samuel Davidson
11 November 2019

Growing layoffs at major steel producers in the United States over the past three months point to a further slowdown in manufacturing and the impact of Trump’s trade war measures. All the major steel producers in the US have reduced production this year and this is now translating into a series of job cuts.
United States Steel (USS), the second largest steel producer in the US and once the symbol of US domination of industrial production, is facing a major crisis. The company’s stock has lost over 75 percent of its value since reaching a high of $45 per share in February 2018 when the Trump administration imposed a 25 percent tariff on steel imports. Today USS stock is trading at less than $11.
The company has announced that it will idle its tin mill in East Chicago, Indiana. The company claims that half of the 297 workers being laid off will be transferred to its other northwest Indiana steel mills, the Gary Works and the Midwest Plant in Portage. It gave no date for reopening the mill and most industry analysts expect it to permanently close because of falling demand for tin.
Earlier this year, USS shut down one of its blast furnaces at its Great Lakes Works near Detroit. Fifty workers were laid off at the time and another 200 lost their jobs at the end of September.
US Steel recently announced plans to buy a minority stake in Big River Steel for $700 million with the option to buy the rest of Arkansas-based steelmaker over the next four years. The buyout is part of USS’s cost-cutting measures. Big River uses an electric arc furnace to melt scrap metal instead of a blast furnace that produces new steel from iron ore.
Blast furnaces need to run at near peak capacity in order to be profitable while electric arc furnaces in so-called “mini-mills” can remain profitable at lower capacities. US Steel is also building new electric arc furnaces, but the decision to buy a competitor signals that the company needs to get into that market faster.
US Steel is not the only steelmaker slashing jobs. AK Steel has announced the closing of its mill in Ashland, Kentucky by the end of the year throwing all 260 employees out of work.
Earlier this year, TMK Ipsco Tubulars Inc. announced it was laying off 159 workers at its tubular plant in Wilder, Kentucky due to dropping demand from the oil and gas industry. Only 20 workers will remain, mainly for maintenance at the plant.
NLMK steel in Farrell, Pennsylvania laid off 100 workers over the summer citing the higher costs of steel imports. NLMK imported steel slabs from Russia and rolled them into finished products. The layoffs took place in the hot mill. About 300 workers are still working in other sections of the mill.
Last month, United Structures of America closed its plant in Portland, Tennessee, putting 45 employees out of work. The company blamed the layoffs on falling demand for steel from the construction industry.
Barber Steel Foundry in Rothbury, Michigan is closing this month, laying off all 61 employees. The foundry is part of Pittsburgh-based Wabtec Corporation, which manufactures locomotives and freight cars. Wabtec (Westinghouse Air Brakes Technology Corporation), which merged with GE Transportation, provoked a strike by 1,700 locomotive workers in Erie, Pennsylvania earlier this year that was isolated and betrayed by the United Electrical (UE) union.
Bayou Steel in Louisiana filed for bankruptcy October 1 and announced it was closing, putting 367 people out of work. Another 72 workers at its Harriman, Tennessee operations were also laid off. Bayou executives said they only had $50,000 in cash and were unable to secure credit.
Charlotte, North Carolina-based Nucor Corporation, the largest steelmaker in the United States, and Luxembourg-based ArcelorMittal, the largest steelmaker in the world, have both seen their stocks fall drastically this year and are under pressure to cut costs and jobs.
Nucor, which is also the largest mini mill operator, has seen its share value fall by nearly 25 percent since its high in 2018. ArcelorMittal’s stock has fallen nearly 60 percent, from a high of $36 in January 2018 to just $15.00. Like US Steel, ArcelorMittal relies primarily on blast furnaces to produce steel from iron ore.
During his election campaign, Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect.
US Steel, Nucor and ArcelorMittal all brought additional capacity online in anticipation of greater demand. While demand rose modestly, the additional capacity put online quickly led to a crisis of overproduction in the US market and falling steel prices. While there is a vast need for steel to repair and improve the infrastructure in the US and around the world, under the capitalist system of production for profit and the division of the world into rival nation-states workers now face the irrational prospect of being thrown into poverty because they have produced “too much” steel.
While most analyses point to tariffs as the cause of the crisis for steel producers, the general slowdown in production in the US and world economy is a major factor. US manufacturing has declined for the past three months while world demand is also down. ...

The world socialists blame tariffs without explaining how tariffs are at fault

Have you considered investing in your human capital and studying economics instead of using your time to extol the bogus virtues of your dear leader?

So what percent of our gdp does China represent

Currently, 100% of Donald Trump's testicles. Donald is frantic and fearful of a coming recession caused by the Trump trade war.

Actually it's one half of one percent.

 

[MisterBeale]

Well we are in a trade war. Lol

yep and losing.

Well you democrats want to lose lol but we are not losing. China is losing more then is, so is Iran.. if you don’t suooort America just renounce your citizenships.. hehe

Both sides losing doesn’t mean we win. Are you really that dense?

What would your solution have been? Status quo? Keep allowing China to steal from us?

One solution is to address the alleged foul play in the WTO instead of spending billions to fight a trade war unsuccessfully.

but blob supporters crave confrontation and simple solutions...it comes from being dumb and immature.

. . . nah, I don't think it is ignorance or immaturity. I believe it has more to do with populism.

All of the neo-liberal and neo-conservative establishment ruling elite politicians for the past, oh hell, forever at least a century, have all been members of either the CFR or Tri-lateral commission. They all have had basically the same world view, and promise to do the same thing, but never deliver on immigration, trade, economics, etc.

"We are all Keynesians now"

This goes all the way back to the nation's founding, and the 10th Amendment. Now, naturally, it is the JOB of the Federal government to enforce borders, and we used to have those two parties, the Federalists or Whigs, and the Anti-Federalists, or Republican/Democrats. We no longer have an Anti-Federalist Republican/Democrat party. Both parties are essentially not only Federalists/Whig in nature, but also, even further, globalists in nature. They do not care one whit about the tenth amendment.

Thus, the parties only serve the financial elites in the big cities and in the nations capital.

Main street has no champion, the financialization of the economy then started, and the looting of the productive classed had commenced.

This is a dangerous point in the economic development of not just the US, but the entire globe, where the small farmer and small businessmen in the US has more in common with the a small farmer or small businessmen in China, than he does with Nancy Pelosi or Mitch McConnell. And Nancy Pelosi or Mitch McConnell is Skyping with their counter-parts in China on the best way to create a global government, so all of their children and family members can forever remain rulers.

The only folks saying boo about any of this are folks like a Gravel or a Trump or a Ralph Nadar. This is why the ruling class journalists ignore them, or give them such flak or they don't get elected or they get assassinated or impeached or etc. . .

This folks, is the new nature of neo-feudalism.

 

[AzogtheDefiler]

Well we are in a trade war. Lol

yep and losing.

Well you democrats want to lose lol but we are not losing. China is losing more then is, so is Iran.. if you don’t suooort America just renounce your citizenships.. hehe

Both sides losing doesn’t mean we win. Are you really that dense?

What would your solution have been? Status quo? Keep allowing China to steal from us?

Triggering a global economic slowdown doesn't stop intellectual property theft. In fact it may cause them to steal more and quicker.

It does? Link that please.

 

[AzogtheDefiler]

yep and losing.

Well you democrats want to lose lol but we are not losing. China is losing more then is, so is Iran.. if you don’t suooort America just renounce your citizenships.. hehe

Both sides losing doesn’t mean we win. Are you really that dense?

What would your solution have been? Status quo? Keep allowing China to steal from us?

They don't have a plan. They just don't like Trump. I know you know this as does anyone with any common sense.

Trump doesn't have a plan. He is a reactionary who relies on his gut. Guts don't plan, they react to the input and deliver their output through a sphincter.

When he ran for POTUS he said he was willing to start a trade war. People knew that when they voted for and against him. Obviously he had a plan.

 

[Mac-7]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Yes, they did. When imported steel got more expensive than domestic they raised the prices to maximize profits.

Ok

Why did china raise its steel prices?

 

[Harpy Eagle]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Yes, they did. When imported steel got more expensive than domestic they raised the prices to maximize profits.

Ok

Why did china raise its steel prices?

China didn’t, the tariffs raised their prices

 

[Crepitus]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Yes, they did. When imported steel got more expensive than domestic they raised the prices to maximize profits.

Ok

Why did china raise its steel prices?

Lol, they didn't. Haven't you been laying attention? tRump put tariffs in Chinese steel. The Chinese don't pay that, we do. The price China charged for the steel stayed the same, the import taxes went up.

 

[Mac-7]

Everything Donald Trump has touched since January 2017 has turned brown and smelly.

Donald Trump levied tariffs on steel to create more jobs in the steel industry. However, the steel industry has lost jobs and is closing steelworks.

On top of that, steel prices went up to other US manufacturers who are now paying more for steel which has contributed to the downturn in US industries that use steel.

The negative effects of Donald Trump's tariffs prove that tariffs do not create jobs, they just raise prices and reduce demand.

"Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect."

Let us pray that Donald Trump's damage to the US and world economy is only temporary and will recover after Donald Trump's impeachment and expungement.

Steel layoffs in US mount due to falling production and trade war

Steel layoffs in US mount due to falling production and trade war
By Samuel Davidson
11 November 2019

Growing layoffs at major steel producers in the United States over the past three months point to a further slowdown in manufacturing and the impact of Trump’s trade war measures. All the major steel producers in the US have reduced production this year and this is now translating into a series of job cuts.
United States Steel (USS), the second largest steel producer in the US and once the symbol of US domination of industrial production, is facing a major crisis. The company’s stock has lost over 75 percent of its value since reaching a high of $45 per share in February 2018 when the Trump administration imposed a 25 percent tariff on steel imports. Today USS stock is trading at less than $11.
The company has announced that it will idle its tin mill in East Chicago, Indiana. The company claims that half of the 297 workers being laid off will be transferred to its other northwest Indiana steel mills, the Gary Works and the Midwest Plant in Portage. It gave no date for reopening the mill and most industry analysts expect it to permanently close because of falling demand for tin.
Earlier this year, USS shut down one of its blast furnaces at its Great Lakes Works near Detroit. Fifty workers were laid off at the time and another 200 lost their jobs at the end of September.
US Steel recently announced plans to buy a minority stake in Big River Steel for $700 million with the option to buy the rest of Arkansas-based steelmaker over the next four years. The buyout is part of USS’s cost-cutting measures. Big River uses an electric arc furnace to melt scrap metal instead of a blast furnace that produces new steel from iron ore.
Blast furnaces need to run at near peak capacity in order to be profitable while electric arc furnaces in so-called “mini-mills” can remain profitable at lower capacities. US Steel is also building new electric arc furnaces, but the decision to buy a competitor signals that the company needs to get into that market faster.
US Steel is not the only steelmaker slashing jobs. AK Steel has announced the closing of its mill in Ashland, Kentucky by the end of the year throwing all 260 employees out of work.
Earlier this year, TMK Ipsco Tubulars Inc. announced it was laying off 159 workers at its tubular plant in Wilder, Kentucky due to dropping demand from the oil and gas industry. Only 20 workers will remain, mainly for maintenance at the plant.
NLMK steel in Farrell, Pennsylvania laid off 100 workers over the summer citing the higher costs of steel imports. NLMK imported steel slabs from Russia and rolled them into finished products. The layoffs took place in the hot mill. About 300 workers are still working in other sections of the mill.
Last month, United Structures of America closed its plant in Portland, Tennessee, putting 45 employees out of work. The company blamed the layoffs on falling demand for steel from the construction industry.
Barber Steel Foundry in Rothbury, Michigan is closing this month, laying off all 61 employees. The foundry is part of Pittsburgh-based Wabtec Corporation, which manufactures locomotives and freight cars. Wabtec (Westinghouse Air Brakes Technology Corporation), which merged with GE Transportation, provoked a strike by 1,700 locomotive workers in Erie, Pennsylvania earlier this year that was isolated and betrayed by the United Electrical (UE) union.
Bayou Steel in Louisiana filed for bankruptcy October 1 and announced it was closing, putting 367 people out of work. Another 72 workers at its Harriman, Tennessee operations were also laid off. Bayou executives said they only had $50,000 in cash and were unable to secure credit.
Charlotte, North Carolina-based Nucor Corporation, the largest steelmaker in the United States, and Luxembourg-based ArcelorMittal, the largest steelmaker in the world, have both seen their stocks fall drastically this year and are under pressure to cut costs and jobs.
Nucor, which is also the largest mini mill operator, has seen its share value fall by nearly 25 percent since its high in 2018. ArcelorMittal’s stock has fallen nearly 60 percent, from a high of $36 in January 2018 to just $15.00. Like US Steel, ArcelorMittal relies primarily on blast furnaces to produce steel from iron ore.
During his election campaign, Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect.
US Steel, Nucor and ArcelorMittal all brought additional capacity online in anticipation of greater demand. While demand rose modestly, the additional capacity put online quickly led to a crisis of overproduction in the US market and falling steel prices. While there is a vast need for steel to repair and improve the infrastructure in the US and around the world, under the capitalist system of production for profit and the division of the world into rival nation-states workers now face the irrational prospect of being thrown into poverty because they have produced “too much” steel.
While most analyses point to tariffs as the cause of the crisis for steel producers, the general slowdown in production in the US and world economy is a major factor. US manufacturing has declined for the past three months while world demand is also down. ...

The world socialists blame tariffs without explaining how tariffs are at fault

retaliatory tariffs make our steel more expensive so we sell less.

The tariffs made chinese steel more expensive

Which was the idea

 

[Mac-7]

Everything Donald Trump has touched since January 2017 has turned brown and smelly.

Donald Trump levied tariffs on steel to create more jobs in the steel industry. However, the steel industry has lost jobs and is closing steelworks.

On top of that, steel prices went up to other US manufacturers who are now paying more for steel which has contributed to the downturn in US industries that use steel.

The negative effects of Donald Trump's tariffs prove that tariffs do not create jobs, they just raise prices and reduce demand.

"Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect."

Let us pray that Donald Trump's damage to the US and world economy is only temporary and will recover after Donald Trump's impeachment and expungement.

Steel layoffs in US mount due to falling production and trade war

Steel layoffs in US mount due to falling production and trade war
By Samuel Davidson
11 November 2019

Growing layoffs at major steel producers in the United States over the past three months point to a further slowdown in manufacturing and the impact of Trump’s trade war measures. All the major steel producers in the US have reduced production this year and this is now translating into a series of job cuts.
United States Steel (USS), the second largest steel producer in the US and once the symbol of US domination of industrial production, is facing a major crisis. The company’s stock has lost over 75 percent of its value since reaching a high of $45 per share in February 2018 when the Trump administration imposed a 25 percent tariff on steel imports. Today USS stock is trading at less than $11.
The company has announced that it will idle its tin mill in East Chicago, Indiana. The company claims that half of the 297 workers being laid off will be transferred to its other northwest Indiana steel mills, the Gary Works and the Midwest Plant in Portage. It gave no date for reopening the mill and most industry analysts expect it to permanently close because of falling demand for tin.
Earlier this year, USS shut down one of its blast furnaces at its Great Lakes Works near Detroit. Fifty workers were laid off at the time and another 200 lost their jobs at the end of September.
US Steel recently announced plans to buy a minority stake in Big River Steel for $700 million with the option to buy the rest of Arkansas-based steelmaker over the next four years. The buyout is part of USS’s cost-cutting measures. Big River uses an electric arc furnace to melt scrap metal instead of a blast furnace that produces new steel from iron ore.
Blast furnaces need to run at near peak capacity in order to be profitable while electric arc furnaces in so-called “mini-mills” can remain profitable at lower capacities. US Steel is also building new electric arc furnaces, but the decision to buy a competitor signals that the company needs to get into that market faster.
US Steel is not the only steelmaker slashing jobs. AK Steel has announced the closing of its mill in Ashland, Kentucky by the end of the year throwing all 260 employees out of work.
Earlier this year, TMK Ipsco Tubulars Inc. announced it was laying off 159 workers at its tubular plant in Wilder, Kentucky due to dropping demand from the oil and gas industry. Only 20 workers will remain, mainly for maintenance at the plant.
NLMK steel in Farrell, Pennsylvania laid off 100 workers over the summer citing the higher costs of steel imports. NLMK imported steel slabs from Russia and rolled them into finished products. The layoffs took place in the hot mill. About 300 workers are still working in other sections of the mill.
Last month, United Structures of America closed its plant in Portland, Tennessee, putting 45 employees out of work. The company blamed the layoffs on falling demand for steel from the construction industry.
Barber Steel Foundry in Rothbury, Michigan is closing this month, laying off all 61 employees. The foundry is part of Pittsburgh-based Wabtec Corporation, which manufactures locomotives and freight cars. Wabtec (Westinghouse Air Brakes Technology Corporation), which merged with GE Transportation, provoked a strike by 1,700 locomotive workers in Erie, Pennsylvania earlier this year that was isolated and betrayed by the United Electrical (UE) union.
Bayou Steel in Louisiana filed for bankruptcy October 1 and announced it was closing, putting 367 people out of work. Another 72 workers at its Harriman, Tennessee operations were also laid off. Bayou executives said they only had $50,000 in cash and were unable to secure credit.
Charlotte, North Carolina-based Nucor Corporation, the largest steelmaker in the United States, and Luxembourg-based ArcelorMittal, the largest steelmaker in the world, have both seen their stocks fall drastically this year and are under pressure to cut costs and jobs.
Nucor, which is also the largest mini mill operator, has seen its share value fall by nearly 25 percent since its high in 2018. ArcelorMittal’s stock has fallen nearly 60 percent, from a high of $36 in January 2018 to just $15.00. Like US Steel, ArcelorMittal relies primarily on blast furnaces to produce steel from iron ore.
During his election campaign, Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect.
US Steel, Nucor and ArcelorMittal all brought additional capacity online in anticipation of greater demand. While demand rose modestly, the additional capacity put online quickly led to a crisis of overproduction in the US market and falling steel prices. While there is a vast need for steel to repair and improve the infrastructure in the US and around the world, under the capitalist system of production for profit and the division of the world into rival nation-states workers now face the irrational prospect of being thrown into poverty because they have produced “too much” steel.
While most analyses point to tariffs as the cause of the crisis for steel producers, the general slowdown in production in the US and world economy is a major factor. US manufacturing has declined for the past three months while world demand is also down. ...

The world socialists blame tariffs without explaining how tariffs are at fault

Have you considered investing in your human capital and studying economics instead of using your time to extol the bogus virtues of your dear leader?

So what percent of our gdp does China represent

Its tiny

Americans have been brainwashed to believe that china is an unstoppable economic goliath that we must roll over for

Trump is changing that narrative

 

[Mac-7]

Everything Donald Trump has touched since January 2017 has turned brown and smelly.

Donald Trump levied tariffs on steel to create more jobs in the steel industry. However, the steel industry has lost jobs and is closing steelworks.

On top of that, steel prices went up to other US manufacturers who are now paying more for steel which has contributed to the downturn in US industries that use steel.

The negative effects of Donald Trump's tariffs prove that tariffs do not create jobs, they just raise prices and reduce demand.

"Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect."

Let us pray that Donald Trump's damage to the US and world economy is only temporary and will recover after Donald Trump's impeachment and expungement.

Steel layoffs in US mount due to falling production and trade war

Steel layoffs in US mount due to falling production and trade war
By Samuel Davidson
11 November 2019

Growing layoffs at major steel producers in the United States over the past three months point to a further slowdown in manufacturing and the impact of Trump’s trade war measures. All the major steel producers in the US have reduced production this year and this is now translating into a series of job cuts.
United States Steel (USS), the second largest steel producer in the US and once the symbol of US domination of industrial production, is facing a major crisis. The company’s stock has lost over 75 percent of its value since reaching a high of $45 per share in February 2018 when the Trump administration imposed a 25 percent tariff on steel imports. Today USS stock is trading at less than $11.
The company has announced that it will idle its tin mill in East Chicago, Indiana. The company claims that half of the 297 workers being laid off will be transferred to its other northwest Indiana steel mills, the Gary Works and the Midwest Plant in Portage. It gave no date for reopening the mill and most industry analysts expect it to permanently close because of falling demand for tin.
Earlier this year, USS shut down one of its blast furnaces at its Great Lakes Works near Detroit. Fifty workers were laid off at the time and another 200 lost their jobs at the end of September.
US Steel recently announced plans to buy a minority stake in Big River Steel for $700 million with the option to buy the rest of Arkansas-based steelmaker over the next four years. The buyout is part of USS’s cost-cutting measures. Big River uses an electric arc furnace to melt scrap metal instead of a blast furnace that produces new steel from iron ore.
Blast furnaces need to run at near peak capacity in order to be profitable while electric arc furnaces in so-called “mini-mills” can remain profitable at lower capacities. US Steel is also building new electric arc furnaces, but the decision to buy a competitor signals that the company needs to get into that market faster.
US Steel is not the only steelmaker slashing jobs. AK Steel has announced the closing of its mill in Ashland, Kentucky by the end of the year throwing all 260 employees out of work.
Earlier this year, TMK Ipsco Tubulars Inc. announced it was laying off 159 workers at its tubular plant in Wilder, Kentucky due to dropping demand from the oil and gas industry. Only 20 workers will remain, mainly for maintenance at the plant.
NLMK steel in Farrell, Pennsylvania laid off 100 workers over the summer citing the higher costs of steel imports. NLMK imported steel slabs from Russia and rolled them into finished products. The layoffs took place in the hot mill. About 300 workers are still working in other sections of the mill.
Last month, United Structures of America closed its plant in Portland, Tennessee, putting 45 employees out of work. The company blamed the layoffs on falling demand for steel from the construction industry.
Barber Steel Foundry in Rothbury, Michigan is closing this month, laying off all 61 employees. The foundry is part of Pittsburgh-based Wabtec Corporation, which manufactures locomotives and freight cars. Wabtec (Westinghouse Air Brakes Technology Corporation), which merged with GE Transportation, provoked a strike by 1,700 locomotive workers in Erie, Pennsylvania earlier this year that was isolated and betrayed by the United Electrical (UE) union.
Bayou Steel in Louisiana filed for bankruptcy October 1 and announced it was closing, putting 367 people out of work. Another 72 workers at its Harriman, Tennessee operations were also laid off. Bayou executives said they only had $50,000 in cash and were unable to secure credit.
Charlotte, North Carolina-based Nucor Corporation, the largest steelmaker in the United States, and Luxembourg-based ArcelorMittal, the largest steelmaker in the world, have both seen their stocks fall drastically this year and are under pressure to cut costs and jobs.
Nucor, which is also the largest mini mill operator, has seen its share value fall by nearly 25 percent since its high in 2018. ArcelorMittal’s stock has fallen nearly 60 percent, from a high of $36 in January 2018 to just $15.00. Like US Steel, ArcelorMittal relies primarily on blast furnaces to produce steel from iron ore.
During his election campaign, Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect.
US Steel, Nucor and ArcelorMittal all brought additional capacity online in anticipation of greater demand. While demand rose modestly, the additional capacity put online quickly led to a crisis of overproduction in the US market and falling steel prices. While there is a vast need for steel to repair and improve the infrastructure in the US and around the world, under the capitalist system of production for profit and the division of the world into rival nation-states workers now face the irrational prospect of being thrown into poverty because they have produced “too much” steel.
While most analyses point to tariffs as the cause of the crisis for steel producers, the general slowdown in production in the US and world economy is a major factor. US manufacturing has declined for the past three months while world demand is also down. ...

The world socialists blame tariffs without explaining how tariffs are at fault

Have you considered investing in your human capital and studying economics instead of using your time to extol the bogus virtues of your dear leader?

So what percent of our gdp does China represent

Currently, 100% of Donald Trump's testicles. Donald is frantic and fearful of a coming recession caused by the Trump trade war.

Everyone except liberals are fearful of the next recession

 

[Mac-7]

Everything Donald Trump has touched since January 2017 has turned brown and smelly.

Donald Trump levied tariffs on steel to create more jobs in the steel industry. However, the steel industry has lost jobs and is closing steelworks.

On top of that, steel prices went up to other US manufacturers who are now paying more for steel which has contributed to the downturn in US industries that use steel.

The negative effects of Donald Trump's tariffs prove that tariffs do not create jobs, they just raise prices and reduce demand.

"Trump repeatedly promised he would revive the steel industry through trade war measures primarily aimed at imports from China and Europe. The expectation of the tariffs and the tariffs themselves sent stock prices up in anticipation of huge profits. However, the protectionist measures have had the opposite effect."

Let us pray that Donald Trump's damage to the US and world economy is only temporary and will recover after Donald Trump's impeachment and expungement.

Steel layoffs in US mount due to falling production and trade war

The world socialists blame tariffs without explaining how tariffs are at fault

Have you considered investing in your human capital and studying economics instead of using your time to extol the bogus virtues of your dear leader?

So what percent of our gdp does China represent

Currently, 100% of Donald Trump's testicles. Donald is frantic and fearful of a coming recession caused by the Trump trade war.

Actually it's one half of one percent.

Thats pretty small

china wants to be the dominant world economy and already is in some places like austrailia

 

[Mac-7]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Yes, they did. When imported steel got more expensive than domestic they raised the prices to maximize profits.

Ok

Why did china raise its steel prices?

China didn’t, the tariffs raised their prices

Steel prices around the world went up not just in the US and china

If trump wins a second term china is in deep doodoo

 

[g5000]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Now think real hard. I know that will hurt, but try.

You are a car maker, let's say. You need steel to make your car.

You can buy steel from China for $450 a metric ton. Or you can buy steel from America, which has higher labor costs, for $600 per metric ton.

Of course, you will buy China's steel and you will be able to make and sell your cars for less.

But then some far left dumb fuck is elected and he inflicts a 35% tariff on Chinese steel.

As the importer of the steel, YOU pay the tariff. Not China, as the dumb fuck tells the rube herd who are stupid enough to bleev him.

So now steel costs you $600 no matter whether you buy it from China or the US.

Now your productions costs go up, and so does the price of your cars.


All caught up now?

 

[g5000]

Institute for Supply Management | Established in 1915


Some direct quotes:


“Continued softening in the global automotive market. Trade-war impacts also have localized effects, particularly in select export markets. Seeing warehouses filling again after what appeared to be a short reduction of demand.” (Chemical Products)

“Chinese tariffs going up are hurting our business. Most of the materials are not made in the U.S. and made only in China.” (Food, Beverage & Tobacco Products)

“We have seen a reduction in sales orders and, therefore, a lower demand for products we order. We have also reduced our workforce by 10 percent.” (Plastics & Rubber Products)

“Economy seems to be softening. The tariffs have caused much confusion in the industry.” (Electrical Equipment, Appliances & Components)

 

[g5000]

U.S. trade gap with China reaches all-time high under Trump

U.S. Posts Record Annual Trade Deficit


Trump is a dumb fuck. A seriously stupid dumb fuck.

Every kid learns in middle school about what a disaster trade wars are.

 

[Mac-7]

If you are such an expert why dont you ‘splain it to me in your own words?

It is fairly simple, the tariffs drove up the cost of all steel, including that made here, initially by almost 50%. What this did was drive down the demand for steel, which hurts our steel producers.

Tariffs did not drive up the cost of steel made on America

Only imported steel cost more

What I see is that the way we produce steel needs to be more efficient whether we have tariffs or not

Now think real hard. I know that will hurt, but try.

You are a car maker, let's say. You need steel to make your car.

You can buy steel from China for $450 a metric ton. Or you can buy steel from America, which has higher labor costs, for $600 per metric ton.

Of course, you will buy China's steel and you will be able to make and sell your cars for less.

But then some far left dumb fuck is elected and he inflicts a 35% tariff on Chinese steel.

As the importer of the steel, YOU pay the tariff. Not China, as the dumb fuck tells the rube herd who are stupid enough to bleev him.

So now steel costs you $600 no matter whether you buy it from China or the US.

Now your productions costs go up, and so does the price of your cars.


All caught up now?

The car maker pays the tariff ONLY if he chooses chinese steel instead of American

Liberals want to stand idly by as US factories close and then demand welfare for the unemployed American workers

Meanwhile china buys more influence in America with their new wealth