Saturday, 27 Apr On this day ...
US Steel plant, Pittsburgh, PA 1936. Getty // Bettmann
Q1. US Steel (USS) was created in 1901 when financier JP Morgan arranged the merger of Carnegie Steel, Federal Steel, and National Steel.
Upon formation, it was the world's largest company and steelmaker, and accounted for 67% of all steel production in the US. It also made Andrew Carnegie world's richest person.
Today USS is the 24th largest producer in the world, 2nd largest in the US, and meets 8% of American steel demand. It employs 23k people.
Generally speaking, what is your view of US Steel?
Upon formation, it was the world's largest company and steelmaker, and accounted for 67% of all steel production in the US. It also made Andrew Carnegie world's richest person.
Today USS is the 24th largest producer in the world, 2nd largest in the US, and meets 8% of American steel demand. It employs 23k people.
Generally speaking, what is your view of US Steel?
male
female
rep
ind
dem
18-29
30-44
45-64
65+
Positive
32%
31%
35%
44%
35%
22%
17%
16%
40%
47%
Negative
3%
1%
3%
2%
4%
4%
4%
5%
3%
1%
Mixed
15%
15%
15%
13%
14%
17%
12%
13%
18%
15%
Familiar with, but don't have a view
27%
28%
26%
20%
26%
32%
31%
32%
22%
26%
Not familiar with enough to have view
22%
23%
21%
20%
20%
24%
32%
33%
18%
10%
Don't care
1%
1%
0%
0%
1%
1%
4%
0%
0%
Q2. USS is considerably older than Asian and European steel companies which had to rebuild from scratch after WW II, and older than specialty US steelmakers that arose in the 1990s. As such, US Steel's legacy plants are relatively high-cost producers, and need capital for upgrades to compete with lower-cost producers.
In August 2023, rival American steelmaker Cleveland Cliffs (CC) bid to buy the company for $35 a share, a valuation of about $8bb.
Japan's Nippon Steel then bid $55 in cash and committed to inject $1.4bb into the company. CC upped their bid to $54, half cash, half stock. In December, US Steel accepted Nippon's bid, and the deal is pending regulatory review.
If you have a preference, what outcome would you like to see? (Note: President Biden and former President Trump both oppose Nippon's takeover.)
In August 2023, rival American steelmaker Cleveland Cliffs (CC) bid to buy the company for $35 a share, a valuation of about $8bb.
Japan's Nippon Steel then bid $55 in cash and committed to inject $1.4bb into the company. CC upped their bid to $54, half cash, half stock. In December, US Steel accepted Nippon's bid, and the deal is pending regulatory review.
If you have a preference, what outcome would you like to see? (Note: President Biden and former President Trump both oppose Nippon's takeover.)
male
female
rep
ind
dem
18-29
30-44
45-64
65+
Nippon buys USS
7%
12%
3%
8%
12%
6%
12%
11%
4%
6%
Cleveland Cliffs buys USS
41%
39%
45%
48%
37%
36%
24%
39%
47%
45%
USS remains independent
35%
33%
37%
35%
30%
35%
35%
33%
33%
38%
Other
2%
1%
2%
1%
3%
3%
5%
2%
1%
0%
Don't have a preference
10%
11%
9%
7%
12%
12%
9%
12%
10%
8%
Don't know
4%
2%
3%
0%
5%
6%
8%
2%
4%
2%
Don't care
2%
3%
0%
2%
2%
1%
7%
0%
1%
0%
Q3. The US imports about 40% of its steel, mostly from Canada, Brazil, South Korea, and Mexico.
In 2018, then President Trump imposed a 25% tariff on imported steel, though a year later removed the tariffs on Canadian and Mexican steel.
When President Biden took office he lifted the tariffs on the EU, and gave subsidies to domestic steel producers.
The steel industry employs 143k people in the US.
What would you prefer when it comes to tariffs on steel imported from our major suppliers S Korea et al? What would you prefer when it comes to subsidies for domestic producers?
In 2018, then President Trump imposed a 25% tariff on imported steel, though a year later removed the tariffs on Canadian and Mexican steel.
When President Biden took office he lifted the tariffs on the EU, and gave subsidies to domestic steel producers.
The steel industry employs 143k people in the US.
What would you prefer when it comes to tariffs on steel imported from our major suppliers S Korea et al? What would you prefer when it comes to subsidies for domestic producers?
male
female
rep
ind
dem
18-29
30-44
45-64
65+
Don't care
0%
0%
0%
0%
3%
0%
1%
0%
0%
In 2018, 6% said Trump's steel tariffs would help them, 53% said they would be hurt by them. 27% appoved of the tariffs, 56% opposed them.
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