Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

USA Steel production down 43.8% from same week

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:12 PM
Original message
USA Steel production down 43.8% from same week
Edited on Mon Dec-08-08 08:16 PM by doc03
last year. the week of December 6, 2008 steel production was 1,182,000 tons the same week last year 2,102,000 tons down about 1,000,000 tons per week. This is just one industry that is seeing the affect of poor auto sales. The steel industry is losing millions of dollars a week working at those levels of production. To put this in perspective my plant produced around 2,300,000 tons the entire year of 2007 we employ around 3000. So losing 1,000,000 tons per week that adds up to 52,000,000 tons a year and maybe 60,000 jobs.
http://www.steel.org/AM/Template.cfm?Section=Raw_Steel_...
Printer Friendly | Permalink |  | Top
ogneopasno Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:17 PM
Response to Original message
1. This affects rail and shipping in NE Minnesota too. We need to get Obama's infrasturcture plan
passed -- steel builds roads, cars, trains, and so on. Steel is the backbone of this nation and we forget it at our peril.
Printer Friendly | Permalink |  | Top
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:24 PM
Response to Reply #1
3. Obama's infrastructure plan will help us
Edited on Mon Dec-08-08 08:44 PM by doc03
tremendously, our main consumer other than autos is the construction industry. People don't think if not for the steel and auto industry we would be speaking German today. The steel plant I work in produced guns and shells back in WWII. The auto industry turned out tanks, jeeps etc. and Ford build thousands of airplanes. If we lose any more of our manufacturing base this country is finished. Would you believe we used to be the worlds number one steel producer now China produces 6 times what we do.
Printer Friendly | Permalink |  | Top
 
ogneopasno Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:41 PM
Response to Reply #3
6. I know, it makes me sick. The mines served by the railroad my partner's on supplied Ford with steel
for decades. And those mines, railroads and shipping jobs made it possible for the children of those workers to go to college -- or stay in the towns and work at living-wage jobs if they didn't want to go to college, buy houses, and raise their own families. Exactly the economic engine that should be running America -- not shuffling imaginary money from one account to another with imaginary worth and interest added in.

Where do you work?
Printer Friendly | Permalink |  | Top
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:53 PM
Response to Reply #6
9. My company was Wheeling Pittsburgh Steel
but we were bought out this summer by a Russian company Severstal NA. They also bought the Rouge Steel plant at the Ford River Rouge plant in Dearborn, Warren Steel in Ohio, the old Bethlehem Steel Sparrows Point plant in Baltimore and they built a new plant in Mississippi.
Printer Friendly | Permalink |  | Top
 
ogneopasno Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 09:08 PM
Response to Reply #9
10. Severstal is certainly pouring the money into the U.S.
But somehow "Severstal" just doesn't have the ring that "Wheeling Pittsburgh Steel" does.
Printer Friendly | Permalink |  | Top
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 09:19 PM
Response to Reply #10
11. So far they have been a good employer
of course things are tight now. Wheeling Pittsburgh Steel has changed hands a half dozen times in the 38 years I have been there. Every new owner came in raped and pillaged the company then sold it off to an even worse SOB. So far I think the Russians buying us is the best thing ever happened they have money and I think they will modernize the place instead of just selling off the good parts and leaving.
Printer Friendly | Permalink |  | Top
 
ogneopasno Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 09:34 PM
Response to Reply #11
12. I'm glad to hear it.
CN bought my partner's railroad a couple years ago and are busy trying to run it into the ground. It's a complete nightmare.

Printer Friendly | Permalink |  | Top
 
Wickerman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:20 PM
Response to Original message
2. Maybe off topic, but didn't US Steel just show a big gain in the market?
not arguing with you, that news is alarming. I was feeling a shred of encouragement for the industry when I heard that news so your take is a little frightening, probably more realistic.
Printer Friendly | Permalink |  | Top
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:31 PM
Response to Reply #2
4. I haven't checked prices today but I would guess all steel
Edited on Mon Dec-08-08 08:34 PM by doc03
gained today because of Obama's infrastructure program he announced Sunday. His plan will create a big demand for steel. the company I work for gained about 30 % today I believe. We are hurting bad right now, we have 800 or so laid off at my plant.

on edit: I checked US Steel up 24% and they are crediting Obama's plan for the increase.
Printer Friendly | Permalink |  | Top
 
economicgeography Donating Member (93 posts) Send PM | Profile | Ignore Mon Dec-08-08 08:31 PM
Response to Original message
5. re:
Seeing as steel is an mainly an intermediate good, it doesn't come as too much of a surprise. There simply isn't enough worldwide demand to justify higher levels of production.

I would not be surprised if the housing bubble spurred higher output and employment levels over the last few years. I don't know what they make houses out of anymore nowadays but I figure steel has to still have some sort of role.


Printer Friendly | Permalink |  | Top
 
ogneopasno Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:42 PM
Response to Reply #5
7. Houses are largely stick-framed. I wish more people would frame houses with steel.
Aside from being better for the steel market (in which I have an interest), it would make better houses.
Printer Friendly | Permalink |  | Top
 
doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 08:43 PM
Response to Reply #5
8. Steel has been doing real well the last couple years
mainly because the Chinese are using so much they haven't been dumping it on our market. Steel prices were also at unbelievable levels because the Chinese have been buying up all the scrap.
A few years ago hot rolled bands were going for $260 a ton and last year they were going for over $900 a ton. We were paying over $500 a ton for scrap steel last summer and today the price has collapsed to $90. Depending on the production process 25% to 60% of steel is produced from recycled scrap. Right now the industry is operating at 49% of capacity the market just vanished the middle of August.
Printer Friendly | Permalink |  | Top
 
Recursion Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 09:35 PM
Response to Original message
13. I'm betting that's the Chindia hit
US steel has had a renaissance because Chinese and Indian companies want steel and we can get it to them pretty cheaply. Once our bankers managed to kill the Chindian economies, though, US steel started going back where it had been for decades.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Mon Oct 20th 2014, 08:02 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC