iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,093 Blog Posts

Let’s Check in On U.S. Steel Since Trump Announced Tariffs on Steel

Well, well, well.

Steel stocks have been obliterated. I’m sure it’s a temporary phenomenon. We can destroy China and be perfectly insulated from the whole ordeal, right?

If you enjoy the content at iBankCoin, please follow us on Twitter

12 comments

  1. ferd

    ..and copper, while maybe no longer a Dr, is threatening to fall into a hole.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • sarcrilege

      watch this — there will be defaults soon by mid/end-summer and then default of sovereigns. The capital will start shifting from EU and Asia to US…this should boost equities and drive interest rates down at the same time. the unknown is what happens in Shanghai on Mar26th and forward with this petroyuan2gold oil futures trading.
      https://tinyurl.com/yd7cvgbt

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • ferd

        zh had a couple of good articles on libor/ois spread in last couple days.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • sarcrilege

          Powell’s hiking of interests will attract global capital to US and the increased demand for TSY will exert downward pressure on int rates. This may be orderly. Or something breaks along the way and the deep states gets what it wants, …a bombed market blamed on Trump and leading to impeachment efforts.

          • 0
          • 0
          • 0 Deem this to be "Fake News"
  2. Dr. Fly

    a coal hole?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. kidstock

    Perhaps this is the dip to buy – Solar stocks dropped before they popped. Most solars needed a quarter to work thru excess inventory that was dumped in anticipation of tariffs.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • sarcrilege

      or perhaps some capex is needed to upgrade and expand facilities; thus, more debt will be taken on in spite of uncertainty of future profitability

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • numbersgame

        They don’t need capaex to expand

        From the Commerce Dept:
        “3. Utilization Rates are Well Below Economically Viable Levels
        Overall, steel mill production capacity utilization has declined from 87 percent n1998, to 81.4 percent in 2008, to 69.4 percent in 2016…The U.S. steel industry uses 80 percent as a benchmark for minimum operational efficiency.”

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  4. lesurgeon

    Jesus Christ.. You’re like our own personal Gartman.

    • 1
    • 0
    • 0 Deem this to be "Fake News"
  5. roundwego

    At the lowes. Trade war and rising rates are a bitch.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  6. acehood

    Fly eating a sandwich again? I want some kneejerk hyperbole!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  7. numbersgame

    On Thursday, it was announced that in addition to Canada and Mexico, the European Union, Argentina, Brazil, South Korea and Australia would be exempt. They accounted for 64.5% of steel imports in 2017, which means the tariff would ahve appplied to 35.5% of impots.

    Now you can imagine that the exempted countries will increase their share of imports, both through more of their own domestic production as well as pass-thru prodcuts from the non-exempted countries, so the amount of tariffed imports will probably be closer to 20-25%. So that means that a 25% tarrif on the non-exempt countries will amount to a net price increase of imported steel to about 5-6%: not that helpful to US steel manufacturers.

    Also, as I previously noted (https://ibankcoin.com/flyblog/2018/03/07/wall-street-concludes-resignation-gary-cohn-net-positive-stocks/#comment-546469), the tariff was *actually* recommended by the Commerce Dept. in February which is when US Steel spiked up.

    • 0
    • 0
    • 0 Deem this to be "Fake News"