5 ms·

Biden Blocks Sale of U.S. Steel to Nippon Steel

23 points by impish9208 2y ago

impish9208 2y ago
Gift link: https://www.wsj.com/business/deals/biden-blocks-sale-of-u-s-steel-to-nippon-steel-1fc47a0a?st=VjfTtN https://www.wsj.com/business/deals/biden-blocks-sale-of-u-s-...
GenerWork 2y ago
Looks like it's done for. Am curious whether the mentioned layoffs may actually happen or whether U.S. Steel is just bluffing.
- toomuchtodo 2y ago
  Incoming admin said they'd do the same unfortunately [1] [2]. Bad policy, is what it is. Likely leads to some sort of M&A with Cleveland-Cliffs [3]. Steel demand is likely to remain subdued for the foreseeable future [4] due to China's deflationary macro and US Fed target rate remaining elevated, so policy is really just managing stagnation or decline at this time (and the ~14k jobs at risk, ~11k of which are United Steel Workers union members). [1] https://apnews.com/article/us-steel-nippon-trump-biden-steelworkers-1b0fb38077ff0a6b68e64a184f270bac https://apnews.com/article/us-steel-nippon-trump-biden-steel... [2] https://archive.today/xaKEP https://archive.today/xaKEP [3] https://www.clevelandcliffs.com/news/news-releases/detail/638/cleveland-cliffs-reminds-u-s-steel-you-have-no-path-to https://www.clevelandcliffs.com/news/news-releases/detail/63... [4] https://www.fitchratings.com/research/corporate-finance/global-steel-markets-under-pressure-due-to-weak-demand-declining-prices-20-09-2024 https://www.fitchratings.com/research/corporate-finance/glob...
deleted 2y ago
[deleted]
- deleted 2y ago
  [deleted]
bamboozled 2y ago
Thank you Comrade Bidenov?
- rad_gruchalski 2y ago
  How can you MAGA without domestic production?
  - toomuchtodo 2y ago
    Japan is an ally, and US Steel would still produce domestically. In the event of extraordinary circumstances (supply chain mobilization for war time effort), the US government has policy tools to protect and control this supply chain already operational on US soil. Factories and skilled workers are all that is needed, everything else (corp structure, capital primitives) is flexible depending on circumstances and who shows up with force. If the argument is surge capacity or readiness capability, that requires a more active policy effort around this part of the domestic supply chain (US gov paying to be ready to scale up, having a controlling interest of some sort to direct operations if needed, etc). https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://som.yale.edu/blog/usage-of-the-defense-production-act-throughout-history-and-to-combat-covid-19 https://som.yale.edu/blog/usage-of-the-defense-production-ac... https://www.defense.gov/News/Feature-Stories/story/Article/2128446/during-wwii-industries-transitioned-from-peacetime-to-wartime-production/ https://www.defense.gov/News/Feature-Stories/story/Article/2...
    - rad_gruchalski 2y ago
      Oh yes, they said they will be cool. If they shut it down, it’s gone. Fix the problem rather than selling it if it’s critical to your defence.
      - toomuchtodo 2y ago
        > Fix the problem rather than selling it if it’s critical to your defence. My kingdom for people in leadership positions who actually give a damn with will to execute. Alas, it appears not on the menu.

23 points by impish9208 2y ago

Gift link: https://www.wsj.com/business/deals/biden-blocks-sale-of-u-s-steel-to-nippon-steel-1fc47a0a?st=VjfTtN https://www.wsj.com/business/deals/biden-blocks-sale-of-u-s-...

GenerWork 2y ago

Looks like it's done for. Am curious whether the mentioned layoffs may actually happen or whether U.S. Steel is just bluffing.

toomuchtodo 2y ago
Incoming admin said they'd do the same unfortunately [1] [2]. Bad policy, is what it is. Likely leads to some sort of M&A with Cleveland-Cliffs [3]. Steel demand is likely to remain subdued for the foreseeable future [4] due to China's deflationary macro and US Fed target rate remaining elevated, so policy is really just managing stagnation or decline at this time (and the ~14k jobs at risk, ~11k of which are United Steel Workers union members). [1] https://apnews.com/article/us-steel-nippon-trump-biden-steelworkers-1b0fb38077ff0a6b68e64a184f270bac https://apnews.com/article/us-steel-nippon-trump-biden-steel... [2] https://archive.today/xaKEP https://archive.today/xaKEP [3] https://www.clevelandcliffs.com/news/news-releases/detail/638/cleveland-cliffs-reminds-u-s-steel-you-have-no-path-to https://www.clevelandcliffs.com/news/news-releases/detail/63... [4] https://www.fitchratings.com/research/corporate-finance/global-steel-markets-under-pressure-due-to-weak-demand-declining-prices-20-09-2024 https://www.fitchratings.com/research/corporate-finance/glob...

deleted 2y ago

[deleted]

deleted 2y ago
[deleted]

bamboozled 2y ago

Thank you Comrade Bidenov?

rad_gruchalski 2y ago
How can you MAGA without domestic production?
- toomuchtodo 2y ago
  Japan is an ally, and US Steel would still produce domestically. In the event of extraordinary circumstances (supply chain mobilization for war time effort), the US government has policy tools to protect and control this supply chain already operational on US soil. Factories and skilled workers are all that is needed, everything else (corp structure, capital primitives) is flexible depending on circumstances and who shows up with force. If the argument is surge capacity or readiness capability, that requires a more active policy effort around this part of the domestic supply chain (US gov paying to be ready to scale up, having a controlling interest of some sort to direct operations if needed, etc). https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://som.yale.edu/blog/usage-of-the-defense-production-act-throughout-history-and-to-combat-covid-19 https://som.yale.edu/blog/usage-of-the-defense-production-ac... https://www.defense.gov/News/Feature-Stories/story/Article/2128446/during-wwii-industries-transitioned-from-peacetime-to-wartime-production/ https://www.defense.gov/News/Feature-Stories/story/Article/2...
  - rad_gruchalski 2y ago
    Oh yes, they said they will be cool. If they shut it down, it’s gone. Fix the problem rather than selling it if it’s critical to your defence.
    - toomuchtodo 2y ago
      > Fix the problem rather than selling it if it’s critical to your defence. My kingdom for people in leadership positions who actually give a damn with will to execute. Alas, it appears not on the menu.