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Tuesday, February 12, 2019

Obama killed steel. Trump brought it back

No Trumpenfreude today. Sorry. Instead, enjoy the announcement from U.S. Steel that it has resumed construction of a 21st century electric arc furnace steel-making facility at its Tubular Operations in Fairfield, Alabama.

"U. S. Steel previously initiated construction of the EAF in March 2015 and suspended construction in December 2015 due to unfavorable market conditions," the company said.

Obama's socialism versus President Donald John Trump's capitalism. No contest.



Graphic courtesy of Daily Timewaster.

U.S. Steel reported, "The investment to complete the EAF, which includes modernization of the existing rounds caster, is expected to be approximately $215 million and add about 150 full-time employees. The EAF will have an annual capacity of 1.6 million tons. Construction is expected to begin immediately and the furnace is expected to produce steel rounds in the second half of 2020."

Company President and Chief Executive Officer David B. Burritt publicly thanked our capitalist president.

"Thanks to the President’s strong trade actions and improved market conditions, support from the United Steelworkers and incentives from the State of Alabama and the Jefferson County Commission, we are excited to add EAF capabilities to our company’s footprint and provide sustainable tubular solutions for our customers," Burritt said.

Oh and tubular steel is used to drill, baby, drill.

Everything Obama hates is in this announcement.

Last month, the Council on Foreign Relations, an influential think tank that has produced U.S. foreign policy for 98 years, declared, "Trump’s Tariffs Are Killing American Steel."

They lied. Steel production in the USA hit an 11-year high last year, finally returning to pre-Bush/Obama recession levels.

The council said, "Yet nearly a year after Trump slapped tariffs on imported steel, the U.S. steel industry is not thriving. It is reeling. Steel prices have fallen back to pre-tariff levels. Employment is stagnant. The clearest sign that tariffs are not working, however, is the stock market."

But wait a second, I thought tariffs would drive steel prices up, up, and away. This is what the globalists told us. Now they say prices are too low. Huh?

The Times of Northwest Indiana reported last month, "U.S. steelmakers made more than 95 million tons of steel in 2018, the most since 2007.

"The United States produced 98.1 million tons of steel in 2007, but has only manufactured an average of 81.9 million tons a year since then, according to the World Steel Association.

"Domestic steel production grew by more than 6.2 percent to 95 million tons as of Dec. 29, according to the American Iron and Steel Institute. Final figures for 2018 will be available at a later date."

President Trump has a magic wand. It's known as capitalism. Washington hates it because Washington cannot control it. That which Washington cannot control, it wants destroyed.

13 comments:

  1. The EAF is a beast to experience. The shop floor is suspended, and when the furnace is on - the two 3 foot diameter carbon electrodes with about 30,000 volts create a huge short-circuit (arc) sound - the scrap steel (eco-friendly recycled content) is literally being melted down... Oilfield tublar goods are casing and tubing - the drill stem that is used to drill the well typically never wears out, but the casing is cemented into place. Tons and tons of steel used in each successful oilwell, and depending on the oil & gas in the well, as well as the depth of the well, and onshore vs offshore, the metal chemistry and manufacturing specs and tolerances differ from oilwell to oilwell - you can't just make a million tons of oilwell tubulars and sell it to everyone. Huge economic activity up and down the oil patch with great paying jobs - scrap metal, minerals, steel manufacturing, trucking, rail, barges, threading and x-rays for pipe/metal defects, drilling of wells, oilfield mud, schlumberger well technology and equipment, fracking technology and equipment, lease royalties, oil & gas transportation, oil & gas refining, pipelines.... A huge economic industry for millions of AMERICANS.....

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    1. Thanks for the insight. I have the best readers.

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    2. Don, you've earned them. GOD bless you.

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    3. Great reply. Back in about 2011, Stephen Moore at the WSJ did an interview with Harold Hamm, the CEO of Continental Resources. Hamm basically found the Bakken oil fields in North Dakota. The interview is here:
      https://www.wsj.com/articles/SB10001424052970204226204576602524023932438
      Hamm's small conversation with obozo is at the link. Priceless.

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    4. Nice article. Thanks Tom.
      The link is restricted. To read the article, copy the above link. Go to outline.com and past the link in. Read away!

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    5. In the 2011 interview mentioned above, Mr. Hamm stated that he believed the USA could garner more that 18 Trillion dollars in oil and gas royalties from increased drilling output.

      That would put quite a dent in our national debt, if we can keep the Uniparty from wasting it on studying the mating habits of fruit flys and other nonsense.

      Great article, thanks.

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  2. When I read the CFR opinions i normally believe the opposite. We've let them nearly destroy our infrastructure, such as water delivery, by wasting trillions on wars that they profit from immensely.

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  3. IMHO, every bit of economic good news is another bit of Trumpenfreude piled on Obama's head. - Elric

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    1. And we haven’t heard much from Sotero lately. Praise the Lord.

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  4. I remember the old stories of steel beams for the Empire State Building arriving from the Pennsylvania mills still warm to the touch.
    Wouldn't it be great to have beams for the Wall built at the new Birmingham mill and shipped piping fresh to the border!

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  5. Thanks, Don -- excellent to get some numbers, especially in absolute terms. It's so very important to look at the right numbers:
    "The clearest sign that tariffs are not working, however, is the stock market."
    No - the issue is the number of tons of steel produced in America.
    "more than 95 million tons of steel in 2018, the most since 2007"

    The magic wand - tax cuts, deregulation (with capitalism as the base)

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