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Wed Jun 19, 2019, 01:25 PM

US Steel is idling plants, despite tariffs designed to save them

https://www.cnn.com/2019/06/19/business/us-steel-cutback/index.html

New York (CNN Business)Pain has returned to the US steel industry, despite the tariffs put on imported steel last year that were designed to help.

Late Tuesday US Steel announced it will idle two of the blast furnaces where it makes steel, one in its flagship mill in Gary, Indiana, near Chicago, the other in Ecorse, Michigan, near Detroit. The idled furnaces will cut production by about 200,000 tons of steel or more a month, the company said.

"We will resume blast furnace production at one or both idled blast furnaces when market conditions improve," said the company.
US Steel (X) also cut its earnings outlook and shut an additional blast furnace in Europe. Although some of the drop in profit is because of the slowdown in the European economy, it pointed to softening demand in the American market as well. US manufacturing has been slowing recently.

US Steel's action follows similar warnings Monday from Nucor (NUE), the nation's largest steelmaker, and Steel Dynamics (STLD). Both are now forecasting lower profits. Nucor pointed to weaker demand from the US auto industry. Steel Dynamics said steel prices have declined across its line of products.

The Trump administration placed a 25% tariff on steel imports in 2018. It helped temporarily lift prices as domestic steelmakers no longer had to worry about as much competition from low-priced steel from China and other locations.


Maybe Trump's tariffs aren't working out like he expected

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Reply US Steel is idling plants, despite tariffs designed to save them (Original post)
IronLionZion Jun 2019 OP
duforsure Jun 2019 #1
IronLionZion Jun 2019 #2
NewJeffCT Jun 2019 #3
IronLionZion Jun 2019 #4
Mc Mike Jun 2019 #5

Response to IronLionZion (Original post)

Wed Jun 19, 2019, 02:01 PM

1. Much like coal mines

And auto plants,all running from trump and being hurt from his tariffs.

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Response to duforsure (Reply #1)

Wed Jun 19, 2019, 02:05 PM

2. Nothing can help coal mines

the economy has changed and coal just can't compete with natural gas and other sources like renewables

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Response to IronLionZion (Original post)

Wed Jun 19, 2019, 02:06 PM

3. The day before Donny announced his tariffs

US Steel stock price was in the mid 40s.

today, it's a little over 15

the market has been up overall in that same timeframe.

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Response to NewJeffCT (Reply #3)

Wed Jun 19, 2019, 02:09 PM

4. Trump supporters should invest in steel and coal stocks

I always ask them and very few actually do.

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Response to IronLionZion (Original post)

Wed Jun 19, 2019, 03:23 PM

5. US Steel is talking about closing Clairton Coke works, here.

Just had an explosion, and have been fighting pollution control laws at that plant.

If they close that, they lose the gas byproduct that is used to power the heating process at US Steel Irvin and Edgar Thomson.

Rump lurves him some steel workers. Coal miners, and auto workers too.

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