Presented Without Comment

Wednesday December 18, 2019

Donald Trump “Look what I’ve done for steel. I mean, the steel is back. We taxed all the dumb steel coming in from China and other places, and US steel mills are doing great — they’re expanding all over the country, and they were gonna be out of business within two years the way they were going.”

Friday December 20, 2019:

US Steel is closing a mill in Zug Island, near Detroit, laying off workers and cutting its dividend. The troubled company is trying to reverse operating losses it now forecasts for the fourth quarter. The mill, called the Great Lakes Works, is expected to close its iron and steel-making operations by April 1. The part of the mill that rolls slabs into sheets of steel will shutter by the end of next year. About 1,500 jobs will be lost, the company said. US Steel had already announced a temporary layoff of about 200 workers at the plant earlier this year.

Well, almost without comment: Merry Christmas Zug Island! From Donald Trump.

8 thoughts on “Presented Without Comment

    1. No spin required, just a few minutes searching.

      https://www.crainsdetroit.com/manufacturing/us-steel-idle-operations-zug-island-plant-lay-1545

      Zug Island is an antiquated and inefficient plant located in the middle of a serious toxic waste area, its production is being shifted to a more modern plant in Gary, Indiana, that will produce the steel with less pollution and at a lower cost.

      The Zug Island plant suffered a serious explosion last year and shifting production to Gary, IN, is more practical than bringing the old mill up to standards.

      https://www.freep.com/story/news/local/michigan/detroit/2018/08/13/steel-plant-zug-island-safety-issues/978522002/

      It’s just creative destruction, and US Steel will be stronger, cleaner and safer as a result.

      I guess without comment means also without checking the facts.

      Like

      1. As Mr. Rothman notes below and noted in my clip “and cutting its dividend”. Steel makers, just like coal, are not doing well; Trump’s policies have exacerbated their decline.

        Moreover, this points to one of my biggest problems with Trump – his and his team’s gross incompetence and lack of knowledge. The president of the United States does not know the condition of the US Steel industry? There was no one to inform him before that rally “hey, lay off talking about steel tonight – the industry is not doing well, and these people know it”.

        Of course, there really is no one to know it, is there? So many top positions in commerce, agriculture, defense, you name it, are going begging to be filled, with 5 major department of defense resignations this week alone.

        Kakistocracy here we come.

        Liked by 2 people

  1. “…US Steel will be stronger…”

    I sure hope so.

    “ U.S. Steel has struggled to compete with domestic steel producers that use mini mill technology, which recycles scrap metal into steel and is a less costly method of production than large integrated steel mills such as Great Lakes Works. U.S. Steel plans to incorporate mini mill production as it repositions for sustainability, the company said.

    President Donald Trump’s tariffs on imported Chinese steel may have contributed to the pinch by boosting U.S. output just as the global economy was cooling, undercutting demand and dropping prices, according to Bloomberg.

    The price of domestic steel is down about 40 percent from its 2018 high just weeks after the tariffs. U.S. Steel shares are down so far this year by about 35 percent. The company will report a 98 percent drop in profits for 2019, Bloomberg reported this week.”

    Per your link.

    Liked by 3 people

    1. You will also see in the link that steel demand and prices are down worldwide, remember that that much of the rest of the world is in or near recession. Not all of the world is doing as well as the US.

      Production of steel from scrap takes less energy and cost less than production from ore, so of course, in times of low demand, production from those mini plants will displace the larger, ore fed, blast furnaces.

      Steel production has always been cyclical, and the world market plays a big part, but that doesn’t chmage the fact that closing Zug Island leaves US Steel more competitive, safer and cleaner. It’s a good thing.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s