Steel prices - Yikes!

[radios1]

Joe Biden has often said "It's never a good bet to bet against the U.S." I agree with that statement. We win when we innovate and outcompete the rest of the world. Lashing out with tariffs and protectionism sounds tough, but it isn't smart.

Businesses are thriving when they invest in technology, and individuals thrive when they invest in their education and skills (for the 21st century). Hoping you can make it at the old school business where your old man worked and the old man before him worked is like hoping 8 track tapes will make a comeback.

it was NEVER smart to have another Country to manufacture for us, we can't depend on that, and also, it puts many people here out of work, and closes manufacturing here. what will happen if the other Country ceases to exist?. that could happen, and possibly soon..

 

[airbiscuit]

I think (I hope) the tariffs are part of a larger plan to balance trade between China and the US. Sure it is going to hurt some, help others but hopefully down the road our net import/export dollars will balance out a bit.

I'd like to think your right, but tariff wars seldom work. Messing with our friend and ally Canada is DUMB, DUMB, DUMB.

 

[John_Mc]

removing protections would be Treason, as it would be devastating to our economy, and our workers!

Actually, as has been shown time and time again, tariffs are devastating to our economy and our workers. The most recent previous steel tariffs under George W Bush in 2002 saved a few jobs in the basic steel industry, but cost many more jobs in downstream steel-using industries.

 

[Gale Hawkins]

In time we will know the results of current and coming actions. Sometimes one has to act then keep tweaking until objectives start to be realized. What if there are other solutions that are not as steel based that may work even better?

 

[airbiscuit]

it was NEVER smart to have another Country to manufacture for us, we can't depend on that, and also, it puts many people here out of work, and closes manufacturing here. what will happen if the other Country ceases to exist?. that could happen, and possibly soon..

If you have advanced manufacturing skills (CNC Machinist, CNC Programmer, Maintenance Technician, Automation Technician, Engineer), You will be in demand for work, and making $$$. If you are unskilled, well they can do unskilled in Bangladesh for a lot less $. The ground has shifted for good paying jobs. Some people upskill and thrive, others hope for a past that will never return.

 

[radios1]

If you have advanced manufacturing skills (CNC Machinist, CNC Programmer, Maintenance Technician, Automation Technician, Engineer), You will be in demand for work, and making $$$. If you are unskilled, well they can do unskilled in Bangladesh for a lot less $. The ground has shifted for good paying jobs. Some people upskill and thrive, others hope for a past that will never return.

you just listed most of my job qualifications, and previous jobs, but I still like higher quality products, and don't like the U.S.A. to suffer.. a steelworker is a very skilled field too..

 

[BMan2005]

Bought some metal a few weeks ago and talked to the owner while there about the price increase. His response, I'm making less per pound on steel now, but I'm tired of having crappy steel come through my shop that was imported, and he felt strongly that in time production will catch up with demand and things will level out. Was kinda reassuring to hear this from a man feeling a slight squeeze from things and still feel very confident in the product he's getting and the end results to come.
Of course I didn't like the price or prices of things yet to come, but we'll see.

Btw, someone mentioned lumber being affected by tarrifs. I'm in the timber business, and I can tell you what wood (timber) is delivered for today is almost identical to the past couple of years. Delivered prices absolutely do not represent what the end product is bringing. The middle man is making mega money right now. That one is not a result of the Tarrifs, at least not so far.

 

[Tractor Seabee]

Steel prices jumping 50% or more the day after tariffs go into effect being justified, why didn't SCRAP STEEL prices jump up also?
You KNOW there is going to be a shortage of scrap & what you have on hand is twice as valuable as it was the day before.

Around here the price of scrap has been way down for a year. Yards are all full to overflowing and they are only shipping to gain more space to buy while price is down. Speculating that the price will take off soon. Playing the commodity market.

Ron

 

[cdb2]

Bought some metal a few weeks ago and talked to the owner while there about the price increase. His response, I'm making less per pound on steel now, but I'm tired of having crappy steel come through my shop that was imported, and he felt strongly that in time production will catch up with demand and things will level out. Was kinda reassuring to hear this from a man feeling a slight squeeze from things and still feel very confident in the product he's getting and the end results to come.

Supply may catch up but prices never will. Simply because if it were possible to produce steel domestically for the same price without penalizing the competition, there would already be foundries doing so.

 

[cdb2]

removing protections would be Treason, as it would be devastating to our economy, and our workers!.. the evil nanny's are the Countries we let take over our manufacturing, they are looking out for themselves, but to some, it appears they are bailing us out, but that is far from true.. the greedy one's that fed our downfall are the U.S.A. based Companies that allowed foreign Companies to take over our manufacturing, seeing large profits in the short term was more important to them!.. Americans suffer from that!..

The people who suffer from price increases due to domestic tariffs are other Americans. If foreign steel sold in the US is subject to a 25% price increase by fiat, then it follows that US manufacturers are the ones who have to pay the 25% increase in material cost. Which means that US manufacturers now have to compete on the global market with a 25% handicap in material cost; the foreign manufacturers aren't paying the tariff on their imported steel. It's a redistribution of wealth from US manufacturers (and the consumers who pay more for the goods now produced at a higher cost) to the US steel industry. I guess if you really like the steel industry that might sound good to you, but at the end of the day it's still Americans who are going to pay for this.