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|Topic subject||Tariffs. Opening the hood and fiddling with the engine. |
480577, Tariffs. Opening the hood and fiddling with the engine. |
Posted by DavidLind on Wed Mar-07-18 08:53 AM
Way back when Ross Perot was running for president, after he called Vice President Gore a big gorilla, he was asked what he would do about the economy. Perot essentially said he would open the hood and fiddle with the engine.
Skip 20 years down the road and instead of a tiny yapping chihuahua, we have an orange orangutain in the White House. In my heart of hearts I would kind of like to see tariffs on imported steel. I've had a lot of friends who worked for US Steel or ARMCO Steel. Steelworkers have taken it in the teeth over the decades. But I really don't think tariffs will solve that.
Now when Donald Trump declares bankruptcy over and over again, I hope there is a method to the madness. That is, if he presses and pulls on the levers of power, I hope he is smart enough to reverse a mistake. In time.
480578, Two things really hurt steel in the US|
Posted by MadSatyrist on Wed Mar-07-18 04:36 PM
The first was the depletion of the hematite ores in Michigan, and the other was the depletion of the anthracite high quality coal.
So the mills moved to India (not China) because those resources were still available.
Now, everyone has depleted the hematites, so iron is made from taconites, which are in plentiful supply everywhere. But taconites require a preprocessing step to create iron pellets.
Which kind of gives you an idea of what's really going on there.
Thing is, there's an awful lot of recycling going on in the metals business now.
So, between the fact that the US is a pretty saturated market with 88% recycling, and the fact that Asian markets would rather employ their own people and import iron pellets - not much room for steel in the USA now. Or coal. Which is why I'm not a coal miner still.
Delusions, errors and lies are like huge, gaudy vessels, the rafters of which are rotten and worm-eaten, and those who embark in them are fated to be shipwrecked. Buddha
480579, And the mills are brand new WWII era. |
Posted by DavidLind on Thu Mar-08-18 06:36 AM
A lot of em anyway. The steel industry never updated a lot of their mills. One built in Baytown Texas in the 70s had a nice new blue sheet metal outside but it's guts came from a WWII era mill from the Port Arthur golden triangle.
480580, Big oil hates the tariff. |
Posted by DavidLind on Sun Mar-11-18 04:07 AM
I don't know how the tariff is playing in Peoria with the rubes, but big oil ain't happy. If the tariff has a minimal political payout it may be very short lived. Big oil consumes huge amounts of steel. Houston is full of pipe yards with truck loads of pipe coming and going.