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Time to start rebuilding those mills in the Rust Belt...Is steel next?
Why are steel prices so high when iron ore prices have crashed? Because: China
China, which makes 57% of the world's steel, plans to shrink its output this year—which means that chronic shortages of new cars and other products are likely to continue into the near future.qz.com
As long as they get the ball rolling by the time they leave they can blame someone else. Every freebie is a tax. California is that house with a boat, new car and bankrupt.They're certainly finding many new ways to turn America into a third-world country
"Covid social distancing" and longshore slow-walking things. Something like 65 ships backlogged at Long Beach alone... a record, and only growing. Even once you get a slip those ships don't just unload overnight...As long as they get the ball rolling by the time they leave they can blame someone else. Every freebie is a tax. California is that house with a boat, new car and bankrupt.
Last I heard, there are still homeless, vets killing themselves, ect, and new spending bills not fixing any of it. By next month 20% across the US may be unemployed to boot.
By the way, I have bay area family looking at their paid for merchandise in the harbor not being unloaded. I'm not sure what the deal is there.
I'm in the steel business and can tell you it has been going insane. Stainless prices have been increasing every 24hrs.Is steel next?
Why are steel prices so high when iron ore prices have crashed? Because: China
China, which makes 57% of the world's steel, plans to shrink its output this year—which means that chronic shortages of new cars and other products are likely to continue into the near future.qz.com
Every 24hrs?? That's insane!!I'm in the steel business and can tell you it has been going insane. Stainless prices have been increasing every 24hrs.
Costco I go to ran outta paper towels & TP last monthCargo piles up as California ports jostle over how to resolve delays
Nike Inc. doesn’t have enough sneakers to sell for the holidays. Costco Wholesale Corp. is reimposing limits on paper towel purchases. Prices for artificial Christmas trees have jumped 25% this season.www.foxbusiness.com
Longshoreman are going to be starting contract negotiations next year and UPS employees in late 2022. I am thinking supply chain issues are going to last awhile.Costco I go to ran outta paper towels & TP last month
China considered it strategic to have a huge steel industry and has been dumping steel in US at below cost, ruining our steel industry. We would have lost WWII if we had no steel industry then. American manufacturers were happy to have cheap steel, but that turns us into dependency on China for ability to manufacture everything including military war equipment.Every 24hrs?? That's insane!!
Dear OldBroad44,China considered it strategic to have a huge steel industry and has been dumping steel in US at below cost, ruining our steel industry. We would have lost WWII if we had no steel industry then. American manufacturers were happy to have cheap steel, but that turns us into dependency on China for ability to manufacture everything including military war equipment.
Trump put major tariffs on steel from China. He also took steel imports out of all other trade agreements. So nobody has the right to dump below cost steel here any more. US has a lot of unused steel production capacity that could be brought back on line once prices are high enough to make it profitable. I think owners were in a wait and see mode before Biden was elected, as he could have reversed Trump policies on trade. Biden's administration, whoever is running it, has doubled down on all the Trump trade positions and tariffs. In fact, the US trade rep is now Katherine Thai. She's, ha ha ha, Taiwanese. And, surprise, she hates China. She has actually never led the negotiation of any trade agreement...a signal that US doesn't particularly care about trade deals beyond those we now have with China, Mexico, Canada, Japan, and Korea. Except Britain in due course. What Thai is expert at is suing trade partners. China is expert at never abiding by their end of trade deals. Thai has already initiated suits against China.
So figure steel prices are going to continue going up and the US government is going to do everything it can to convince US plant owners to bring US steel production back on line. We have the plants already, currently largely unused.
This is stuff I picked up watching YouTube videos from geopolitical strategist Peter Zeihan, a very entertaining and insightful speaker and character.
I do consulting and risk assessment for some fleets in CA. How most companies I've worked with determine when to replace a truck is based on when it will no longer be compliant with CARB (California Air Resources Board) regulations. Some even move part of their companies into neighboring states where they can still use their assets (trucks). Others are sold to companies in Mexico. How business is killed by 1,000 cuts.Lots of trucks can't enter California because of their pollution laws. It affects even reefer units. I bought a Perkins engine 15 years ago that was surplus because it couldn't be used in California any more.
This creates an artificial shortage of trucking.
When I was a youngster in the 1950's, most households in my neighborhood had one car. It was shared, that is, if there were any other licensed drivers in the home. Parking was absolutely not a problem. I have pictures of my old neighborhood, there are only a few scattered cars using on-street parking. Good thing, too, because that street was a major play area for kids.California is that house with a boat, new car and bankrupt.
Yes, this emphatically. And worrying about billions now has morphed into trillions. President Eisenhower used to worry about a few million. Those days are gone for sure, and so has the value of our money. Which is one of the reasons for the increases. But not the only reason. Wildly expanded credit is another major cause. A third reason is complete absence of budget discipline. Once the nation embarked on free stuff for all, political will for spending discipline gradually then completely vanished. It didn't just start with this or that recent administration; it launched in the 1960's. My hope is to get through my life without having to experience the consequences.A 100 million dollar site was a big deal here in the sorry US of A. The annual stock thingy brags about the multiple BILLION DOLLAR sites being built in China & India.