Kentucky - Century Aluminum

[Son of Butch]

Century Aluminum in Kentucky has been called a big winner after President Trump's trade tariffs go into effect in
2 weeks and Canada and Mexico received exemptions, at least temporarily.

 

[Supa Dexta]

You wouldnt think much of a man who makes a deal and then goes back on it, but its all good when your country does?

The exemptions only made sense.

 

[Bright Raven]

I purchase mild welding steel from 'Ripley Metal Works'. They are located in Ripley, Ohio on the banks of the Ohio River across from Maysville, KY. They have a scrape bin and the manager of the plant will turn you loose to rummage through it and pick out what you want. When you are finished, he surveys it and gives you a price. It is very cheap.


He took me on a tour of their plant. It is impressive. They use computer technology to cut and fabricate complex metal projects. He told me, the company is owned by a couple seniors. He said they work on a knife thin profit margin and many years only meet cash demands. The owners tell him the only reason they keep it open is for the jobs it provides in the local economy. I have to wonder since they only fabricate and buy their metals - steel, aluminum, copper, etc. - if they will stay in business.

 

[jltrent]

Better buy your aluminum cattle trailer ASAP. I would say it will help Alcoa aluminum also.

 

[callmefence]

You wouldnt think much of a man who makes a deal and then goes back on it, but its all good when your country does?

The exemptions only made sense.

If you know there's gonna be a negotiation. You always start high so you've got room to come down.

 

[M-5]

MAGA!

 

[Caustic Burno]

MAGA!

Got that right we have been getting the short end for years. If we had to fight another WWII type war we would loose.
We have lost the majority of manufacturing jobs. Singer sewing machine geared up in WWII to make 1911’s. Manufacturing pumps money in the community retail and service suck it out.

 

[M-5]

Caught a blip on radio yesterday that a steel mill in Ohio is calling people in from layoff in 2015. They should be up an running in a month iirc

 

[Farm Fence Solutions]

It is looking like our wire won’t get hit with the tariff, but we still have a price increase of anywhere from 8% to 19% that we are dealing with. Our whole point in bringing this product to the US was so that we could build a factory here. This’ll definitely be a bump in the road to meeting sales goals.

 

[True Grit Farms]

When this all started it was only a 25% tariff on steel imported from China, and a 10% tariff on aluminum imported from China. Sounds like I need to get back up to speed on this metal tariff? I'm building the aluminum cabin and decks for my son's new boat, and have the materials and cut list figured out. I might need to buy the materials ASAP, I figured a 10% increase was nothing to worry about.

 

[Bright Raven]

Caught a blip on radio yesterday that a steel mill in Ohio is calling people in from layoff in 2015. They should be up an running in a month iirc

It is going to have some short term adverse effects. Only time will tell. Most metals come into mills as ingots from foreign markets.

Smelting is all but gone. Northern Kentucky was a major smelting, rolling and finish metal industrial area in the 50s and 1960s. Many of my relatives worked at Interlake Steel in Newport. They now only finish metal. It may take some time for this to sort out.

https://www.google.com/amp/s/amp.ft.com ... a1f72c2c11

 

[Farm Fence Solutions]

When this all started it was only a 25% tariff on steel imported from China, and a 10% tariff on aluminum imported from China. Sounds like I need to get back up to speed on this metal tariff? I'm building the aluminum cabin and decks for my son's new boat, and have the materials and cut list figured out. I might need to buy the materials ASAP, I figured a 10% increase was nothing to worry about.

I talked to Frank at Pierce Aluminum last week to double check prices before I priced a hull for a customer. 5000 series sheet is up 25% since last fall. Luckily, the last order I bought, I doubled.

 

[True Grit Farms]

It is looking like our wire won’t get hit with the tariff, but we still have a price increase of anywhere from 8% to 19% that we are dealing with. Our whole point in bringing this product to the US was so that we could build a factory here. This’ll definitely be a bump in the road to meeting sales goals.

Why the price increase, and why the bump in the road? The problem I see is the tariff needs to include EVERY country. Otherwise your just encouraging cheating, and the tariffs won't work.

 

[Bright Raven]

That link is requesting a subscription. Here is an excerpt:

Donald Trump’s planned 25 per cent tariffs on steel imports could jeopardise jobs in some of the struggling mills he set out to protect, according to industry executives whose businesses depend on 30-ton slabs they cannot source domestically.

Most imports to the US come in the form of finished steel, but about 20 per cent are semi-finished slabs from Brazil, Russia, Mexico and Japan that are converted into the products then sold to carmakers, construction companies and other customers.

Those mills may now be forced to cut staff or even close, executives said.

 

[Farm Fence Solutions]

file:///C:/Users/inluk/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Chapter%2072.pdf

Articles 72 and 73, in particular.

Try this....
https://hts.usitc.gov/current

 

[TennesseeTuxedo]

"Trade wars are easy to win"

Famous last words.

 

[Farm Fence Solutions]

It is looking like our wire won’t get hit with the tariff, but we still have a price increase of anywhere from 8% to 19% that we are dealing with. Our whole point in bringing this product to the US was so that we could build a factory here. This’ll definitely be a bump in the road to meeting sales goals.

Why the price increase, and why the bump in the road? The problem I see is the tariff needs to include EVERY country. Otherwise your just encouraging cheating, and the tariffs won't work.

Because steel is going up. Suppliers of raw material will raise the price in transit. I don't agree with it, but it is the way that it is. The tariff does include every country, with a moratorium for Mexico and Canada, but it does NOT include every pound of steel or aluminum.......that's how it reads, anyhow. The bump in the road comes when my customer from last month calls for more product, and the price, if we do in fact get hit with the tariff, has gone up 44%.

 

[Bright Raven]

Reuters is about as real news as you can find. If this is true, someone needs to do some research to figure whether our POTUS has lost his marbles!
https://www.google.com/amp/mobile.reute ... SKCN1GK2VA

 

[True Grit Farms]

Screw Canada and Mexico we've lost a lot of US jobs to those two countries. Sounds like this metal tariff is going to the POTUS deal with NAFTA also. He's doing his job, or at least is trying to, put the US of A first.
http://www.foxnews.com/politics/2018/03 ... r-now.html

 

[True Grit Farms]

It is looking like our wire won’t get hit with the tariff, but we still have a price increase of anywhere from 8% to 19% that we are dealing with. Our whole point in bringing this product to the US was so that we could build a factory here. This’ll definitely be a bump in the road to meeting sales goals.

Why the price increase, and why the bump in the road? The problem I see is the tariff needs to include EVERY country. Otherwise your just encouraging cheating, and the tariffs won't work.

Because steel is going up. Suppliers of raw material will raise the price in transit. I don't agree with it, but it is the way that it is. The tariff does include every country, with a moratorium for Mexico and Canada, but it does NOT include every pound of steel or aluminum.......that's how it reads, anyhow. The bump in the road comes when my customer from last month calls for more product, and the price, if we do in fact get hit with the tariff, has gone up 44%.

Why the 44% increase you just said it was only going to cost you 8% to 19% more for the product? And if the tariff affects all imported fence products made out of aluminum or steel, if the customer wants or needs it they'll pay the extra.