Author: Signal Group

WASHINGTON, Dec. 11, 2018 /PRNewswire/ — Today, in a presentation at the National Press Club of Washington, the American Primary Aluminum Association (APAA) in conjunction with Economic Policy Institute (EPI), the Alliance for American Manufacturing (AAM) and the Coalition for a Prosperous America (CPA), addressed the economic effects of President Trump’s steel and aluminum tariffs. As part of this presentation, EPI released a new economic study on the impact the aluminum tariffs have had on the aluminum industry, which shows conclusively that the tariffs are helping boost aluminum production and create jobs.

The EPI study points out that as a result of the aluminum tariffs twenty-two new and expansion projects have been announced in downstream aluminum industries producing extruded (rod and bar, pipe and tube and extruded shapes) and rolled (sheet and plate) products. The EPI study also notes that these expanded facilities will employ 2,000 workers, generate $3.3 billion in new investments, and will add nearly one million tons of annual rolling and extrusion capacity to the downstream, domestic aluminum industry.

“Today’s conclusive study by EPI confirms the positive impact the Trump administration’s Section 232 tariffs are having on the U.S. aluminum industry,” said Jesse Gary, Chairman of the APAA. “The U.S. primary aluminum industry and thousands of American aluminum workers are getting back to work, with domestic production expected to increase by over 60% by the end of the first quarter of 2019.”

Fr. U.S. Senator Evan Bayh (D-IN), who represented an aluminum and steel producing state for over two decades, noted that “the Section 232 aluminum tariffs protect us from countries that cheat and level the playing field for American workers.” Senator Bayh also pointed out that “as a result of the tariffs, thousands of working-class families in my home state of Indiana and across our nation who work in manufacturing can keep their jobs.”

“When the aluminum and steel tariffs were first imposed, critics claimed that there would be a devastating impact on the domestic economy and industries,” said Robert E. Scott, Senior Economist at EPI and author of the latest report.“This report examines real evidence of employment, investment and capacity expansions in both primary aluminum and downstream industries, and documents the positive and tangible economic impact the Section 232 tariffs have had on all segments of the aluminum industry.”

The report highlights some of the key advancements made since the tariffs’ implementation, including the addition of 164,000 jobs created in the manufacturing sector, including 2,700 in metal production. In the rest of the domestic economy, 1.7 million jobs have been created in this same period directly disputing claims made by large industry and trade groups that tariffs would have a negative impact. In particular, the report challenges the beer industry’s claims that aluminum tariffs would harm the beer industry by revealing the industry’s growing demand for craft and imported brews – a market development which has nothing to do with the implementation of tariffs.

The report concludes that there is absolutely no evidence to suggest that the imposition of tariffs in aluminum or steel industries have had the kinds of negative employment impacts in downstream manufacturing or in parts of the economy that were predicted by critics of aluminum tariffs.

In addition to the impressive job creation, twenty-two expansion projects were announced in downstream aluminum industries, shipments of aluminum and steel products have increased, and domestic U.S. producers have outperformed continental production.

About the American Primary Aluminum Association (APAA): The American Primary Aluminum Association will advocate to advance the interests of America’s primary aluminum industry and its workers through the Aluminum Now campaign. APAA is registered and incorporated in Washington, DC and operates as a non-profit trade association. For more, please visit: www.aluminumnow.org

China produces an astonishing number of astonishing numbers, including this: In the 20th century, America made automobiles mass-consumption items, requiring prodigious road building. China, however, poured more concrete for roads and other construction between 2011 and 2013 than America did in the 20th century. This fact is emblematic of China’s remarkable success. And is related to its current difficulties, including its 2015 growth rate (6.9 percent), its slowest in 25 years.

The regime’s contract with its 1.4 billion subjects is that it will deliver prosperity and they will be obedient. Now the bill is coming due for the measures taken to produce prosperity.

In 1978, when Deng Xiaoping began the regime’s attempt to leaven Leninism with market reforms, half of the Chinese lived on less than $1 a day. In just six years, collective agriculture almost disappeared and grain production increased 34 percent, freeing people to move from the countryside to more productive urban employment…

The trick with big, important numbers like China’s gross domestic product (GDP) is not working out what the data tells us, rather it’s what it doesn’t.

China’s economy met market expectations by expanding 6.8 percent year-on-year in the fourth quarter of last year, which put full-year growth at 6.9 percent, down from 7.3 percent in 2014 and the slowest pace of expansion in a quarter of a century.

Other economic data released on Tuesday came in slightly below market forecasts, with December industrial output up 5.9 percent year-on-year, retail sales up 11.1 percent and January to December fixed-asset investment up 10 percent.

What the data shows is that the trend of a slowing Chinese economy remains intact, as does the slow and somewhat painful process of shifting the drivers of growth from heavy industry and construction to consumer activity…

This has got to be the dumbest idea to come out of China in a while.

Is stockpiling more aluminum the answer, China? Really?

Not that I am suggesting China has a monopoly on stupid ideas, we have more than our fair share of them at home, but reports last week that six major Chinese companies are considering forming a joint venture company that will purchase primary aluminum and hold it in stock — for what ultimate end use or for how long isn’t clear — but the suggestion is it would support the market price. That stupidity will take a lot to beat.

Indeed, one analyst at China Merchants Futures went so far as to laughably suggest that “if they stockpile 500,000 metric tons in the first half of this year, the Chinese market may have a supply deficit,” according to Reuters.

Let’s Stockpile Aluminum!…

Alcoa Inc’s plans to close its 269,000 tonne-per-year Warrick smelter, announced on Thursday, will bring U.S. aluminum output to its lowest level in more than 65 years as the industry endures tumbling prices amid rising trade tensions with China.

Warrick is the largest currently-operating smelter in the United States and the biggest shoe to drop in a string of recent curtailments and closures, potentially boosting prices and possibly bolstering some U.S. producers’ claims they are harmed by subsidized Chinese production.

The Evansville, Indiana plant’s closure, which will take place by the end of the first quarter, will leave Alcoa with just one active smelter: the 130,000 tonne-per-year Massena West plant, which was saved from closure with $70 million in New York state aid…

The previous year was terrible for Alcoa (AA) investors. The stock ended the year with falls of 35%. The mining sector itself had the worst year since the global financial crisis of 2008–2009 and mining companies fell to multiyear lows during the year.

Norsk Hydro (NHYDY) was among the better-performing aluminum producers in 2015 and ended the year with falls of only about 13%. This is relatively less if we look at the carnage in the metals space. Century Aluminum (CENX) saw its market capitalization erode by more than 80% during the year as you can see in the graph above. Please note that Century Aluminum is majority-owned by mining giant Glencore (GLNCY).

Investors looking for a respite from last year’s fall were in for a disappointment as Alcoa and other aluminum producers resumed their downslide right at the beginning of 2016. Alcoa has seen a downward price movement of more than 25% so far in 2016….