Steel prices - Yikes!

[John_Mc]

Yes, I would be surprised that any tariff would be affecting steel already purchased by dealers. Bought and paid for... just middlemen taking advantage of small consumers.

I work in the steel industry (company buys steel rod and makes & heat treats steel wire). The effect of the steel tariffs was pretty quick for us. Prices form the US steel mills have been shooting up. When the tariffs were announced it just about brought imports to a halt (no one wants to be left holding the bag for the tariffs while they wait to see how things will shake out). The US steel industry does not have the capacity online to meet domestic demand. With the resulting shortage, US steel manufacturers have taken the opportunity to increase prices. It's been great for them. Some of them are busy enough that they are bringing equipment online that has not been run in many years. It's not been so great for their customers. They are not protected by tariffs, and have to pay higher prices for steel, while their foreign competitors still have access to less expensive steel, and can ship their finished products to the US without any tariffs.

 

[Oldoak]

Have to look at the big picture.

Exactly! :thumbsup:

Plus the entire price hike is not just the high tariff alone. The importer, distributor, wholesaler and finally the retailer each add a percentage for their own mark-up which increases their profit and finally our cost.

 

[airbiscuit]

The big picture is to be better to your allies than your enemies (not the other way around).

 

[downsizingnow48]

As I see it, the big picture is, a handful of domestic steel makers get windfall profits from a partial monopoly, at the expense of many many domestic manufacturers that use steel and cannot compete very well against untariffed goods made from world price steel overseas. And also at the expense of a nation of consumers. I am looking for a silver lining but not seeing it.

 

[MickeyDBC]

Aluminum is also up by almost a dollar a pound over the last 18 months. As the new tariffs go in expect major inflationary pressures on a lot of things.

 

[Oldoak]

As I see it, the big picture is, a handful of domestic steel makers get windfall profits from a partial monopoly, at the expense of many many domestic manufacturers that use steel and cannot compete very well against untariffed goods made from world price steel overseas. And also at the expense of a nation of consumers. I am looking for a silver lining but not seeing it.

There will always be winners and losers in any situation. In my opinion there is no such thing as a "win-win" situation. Only compromises in which no one gets exactly what they want.

Example: Lower cost goods and higher wages don't go together.

 

[blackdog2086]

The big picture is to be better to your allies than your enemies (not the other way around).

When your "allies" continually rob you but expect you to give them the deals that benefit them but screw you, they show their true colors. I spent a considerable amount of time overseas listening to our "allies" continually bash the U.S. while enjoying our military protection and financial resources on a daily basis. It's about time they learned we're not going to continue giving handouts and paying the bills they incur. Kind of like a kid who wants everything but doesn't want to work for anything.

 

[newbury]

This thread needs to be moved to FP

There will always be winners and losers in any situation. In my opinion there is no such thing as a "win-win" situation. Only compromises in which no one gets exactly what they want.

Example: Lower cost goods and higher wages don't go together.

But in this case - steel and aluminum tariffs - there are exemptions. And for those on the ruling political side a vote to deny exemptions for their competition.

Steel Giants With Ties to Trump Officials Block Tariff Relief for Hundreds of Firms - The New York Times

Sort of like small town politics. In a dry county in Mississippi the "friends" of the Sheriff could hold booze parties without fear of retribution, while the average joe would get busted for having a 6 pack of Bud lite in their house.

 

[houstonscott]

Went to my LWS store to buy a 1/4in 2' by 4' mild steel plate for some misc projects. Holy Cow! Prices have jumped!!! On average the counter guy was saying 50 to 70%. Especially expanded metal sheets for some reason. Anyone else feeling the pain?

Salves in China are cheap.

 

[zzvyb6]

You need to realize out money is becoming more and more worthless every week because its being devalued to try to pay off our TRILLION dollar dept to overseas countries.

We should also put a return deposit on shipping containers to get money for their stockpiling. The center of gravity of the earth is shifting because of all the containers piling up over here.

But then, I suppose all of you complainers would rather have US workers loose their jobs and US companies go out of business instead of the Chinese. No go buy a Chinese tractor and STFU. Don't ask here afterwards where you can buy a crankshaft for it.