U.S. Steel idles blast furnaces, cites lower demand and prices
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    Default U.S. Steel idles blast furnaces, cites lower demand and prices

    They say demand and prices are down. Hot rolled is mentioned. Are you seeing lower steel prices? Looks like the layoffs have increased since the June announcement.



    U.S. Steel plans to lay off hundreds of workers in Michigan - Reuters


    CHICAGO (Reuters) - United States Steel Corp will temporarily lay off hundreds of workers at its Great Lakes facility in Michigan in coming weeks, according to a filing the steelmaker made with the State of Michigan.

    In a Worker Adjustment and Retraining Notification filed on Aug. 5, the Pittsburgh-based company said it expects to let go fewer than 200 workers following its decision to halt production at the Michigan facility.

    In mid-June, the company said it would idle two blast furnaces at its Great lakes and Gary Works plants, citing lower steel prices and softening demand.

    U.S. Steel said the lay-offs at the Michigan plant could last beyond six months. They will impact nearly every area of the facility, from blast furnace to finishing operations, a company spokeswoman told Reuters.

    The lay-offs call into question claims President Donald Trump has made about the resurgence of the domestic steel industry. Last week in Pennsylvania, Trump said his 25% tariff on foreign imports has turned a "dead" business into a "thriving" enterprise.

    Domestic steel prices did rise in the immediate aftermath of Trump's tariffs. But they have fallen dramatically amid improved supplies and weakening demand from the auto and farm machinery sectors.

    Prices of hot-rolled coil are down nearly 37% from their 2018 peak.

    U.S. Steel's stock price has plunged 73% since March 1, 2018, when Trump announced his decision to crack down on foreign imports.

    An official at the United Steelworkers union, which represents U.S. Steel workers, said lay-offs were also planned for the Gary Works facility in Indiana. U.S. Steel's spokeswoman, however, said the company "currently doesn't expect any employment level changes" at the Indiana plant.

    The city of Gary and the state of Indiana have offered U.S. Steel a $47 million tax break package to help it invest $750 million in modernizing Gary Works, its largest North American plant.

    The state's tax credits and worker training grants were tied to the condition that U.S. Steel retain at least 3,875 jobs at Gary Works.

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    ...trade wars are good, and easy to win.

  3. Likes Gobo, TeachMePlease, JoeE. liked this post
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    Have the Steelers moved to Michigan?

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    Quote Originally Posted by sealark37 View Post
    Have the Steelers moved to Michigan?
    No, but they're shorting Canadian currency - they've unloaded some of their Loonies...

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    Quote Originally Posted by Milland View Post
    No, but they're shorting Canadian currency - they've unloaded some of their Loonies...
    I hear that they float....being made from Maple and all....

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    Don't tell Larry Kudlow -- those evil Canadians will give him another heart attack.

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    I'd love to see cheaper steel prices.

    The problem is that the drop in prices won't push demand up the same day. A lot of projects that consume a lot of steel take time to plan.

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    A lot of projects which consume a lot of steel are driven by the economy not material costs.

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    I heard Steel production peaked earlier in the summer so there is more supply. I feel for any laid off and these layoffs are described as temporary which means no job for now.

    USS also did invest in growing a while back of course the world as a whole has slowed down economically. Just hope it bounces back soon.


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