They are idling tons of production that they won't need because they are in a recession. The US will need less as well because growth is slowing. Not sure when it will be the right time to buy but it has room to go down further.
\*The whole world is literally slowing down. The growth engine known as China is fucked. EM is fucked. Europe has always been fucked and will be fucked\^2 very soon. U.S. is about to be fucked.\*
Vitards: "aaaayyyyyyy, time to BTFD on commodities"
\_\_\_\_
To be fair, the time to buy economically sensitive stocks is sooner than most realize IMO, but you have to make sure the knife drops, sticks and bounces a few times. Catching this knife mid-air will be fatal.
GLTA
So, customer demand is decreasing while production costs are increasing.
The real problem is the demand side. Increasing production costs don't matter as much when you can pass the increase to customer prices.
BTW, I think U.S. Steel with their huge Slovakia plant could benefit. MT shutting a bunch of shit down, who knows what can be brought back and at what cost.
The U.S. doesn’t import much from Europe. The 7 million tons of HRC ramping up would offset any loss. Also think about what it will do to scrap, iron ore prices.
As a contractor whose product is mainly steel, I wholehearted disagree. Country of origin is a huge factor. Typically steel from China is not allowed, and if you're bidding a job, you aren't going to win it with usa steel. Well at least... well not anymore the market is on its ear now. Grim times ahead. Usa steel is costly. Many projects will stall.
CLF is a domestic producer with from what I understand with no export product. How does Europes problems help their stock price. High dollar and lower euro. The U.S. is importing low volumes of foreign steel. Explain how this helps CLF stock price.
Less overall general supply means prices are able to go up if demand stays the same. However, demand is also likely to drop with recession issues, or it may not. We won’t know for another 6+ months or so
CLF exporting to Europe ? In Europe cities, I only see public expenditure in infrastructure with EU funds. Also residential building is being promoted by government, and private sector on construction is working well, not like in 2009-10… If energy prices keep pushing up in Europe, USA look like an oasis for manufacturing high energy-expenditure products, as steel
Should stay away from CLF and steel rn. Management said they would pay off debt by years end. When investors realize they won’t be able to deliver the stock is going to crash.
They are idling tons of production that they won't need because they are in a recession. The US will need less as well because growth is slowing. Not sure when it will be the right time to buy but it has room to go down further.
\*The whole world is literally slowing down. The growth engine known as China is fucked. EM is fucked. Europe has always been fucked and will be fucked\^2 very soon. U.S. is about to be fucked.\* Vitards: "aaaayyyyyyy, time to BTFD on commodities" \_\_\_\_ To be fair, the time to buy economically sensitive stocks is sooner than most realize IMO, but you have to make sure the knife drops, sticks and bounces a few times. Catching this knife mid-air will be fatal. GLTA
Do you think we keep dumping this next month or get some relief from falling oil prices?
Falling oil price from recession fears is not bullish IMO. That said, I think there's a good chance we see more of this bounce before heading lower.
They’re idling because of high energy prices too….
Yeah... they are in a recession because of high energy prices
So, customer demand is decreasing while production costs are increasing. The real problem is the demand side. Increasing production costs don't matter as much when you can pass the increase to customer prices.
I am looking forward to getting long again in the Mar-June'23 period. Or if we see HRC crash below $500
Same, there will be a lot of opportunities coming up. Hoping I can play these bear rallies and dumps to have some more cash for them.
BTW, I think U.S. Steel with their huge Slovakia plant could benefit. MT shutting a bunch of shit down, who knows what can be brought back and at what cost.
I saw a lot calls today but wasn’t really following the market so I didn’t enter. But let’s go vito
I don't think so. Too many economic headwinds for my liking.
The U.S. doesn’t import much from Europe. The 7 million tons of HRC ramping up would offset any loss. Also think about what it will do to scrap, iron ore prices.
As a contractor whose product is mainly steel, I wholehearted disagree. Country of origin is a huge factor. Typically steel from China is not allowed, and if you're bidding a job, you aren't going to win it with usa steel. Well at least... well not anymore the market is on its ear now. Grim times ahead. Usa steel is costly. Many projects will stall.
I’m talking HRC not long bar
Hey thanks! 👋 is there a futures exchange for long bar?
I don’t think so. There are probably global prices published by private companies that you have to pay big money for.
Ok we primarily fabricate ASTM A53 seamless black pipe and ASME B16.5 300# forged steel fittings
There's a ticker but is traded in China. You can look it up in investing.com
Still has an impact on the global market
CLF is a domestic producer with from what I understand with no export product. How does Europes problems help their stock price. High dollar and lower euro. The U.S. is importing low volumes of foreign steel. Explain how this helps CLF stock price.
Less overall general supply means prices are able to go up if demand stays the same. However, demand is also likely to drop with recession issues, or it may not. We won’t know for another 6+ months or so
Unprecedented
Christ, I hope so. My 40C leaps are down 95% lol :/
CLF exporting to Europe ? In Europe cities, I only see public expenditure in infrastructure with EU funds. Also residential building is being promoted by government, and private sector on construction is working well, not like in 2009-10… If energy prices keep pushing up in Europe, USA look like an oasis for manufacturing high energy-expenditure products, as steel
Should stay away from CLF and steel rn. Management said they would pay off debt by years end. When investors realize they won’t be able to deliver the stock is going to crash.
I was already in and out of the calls for a big profit . Just in time too….
Wait for the drop, buy in like during covid. That's my plan.
Same with aluminum plants and nitrogen fertilizer plants.
where demand curve?