SA Whyalla: the new Moranbah ?

Why the backwash from steel maker Arrium's woes affects everyone

Looks like more gloom and doom. Bad for everyone:

• Workers
  
• SA economy.
• State and federal government.
• Banks and creditors
  
• Share holders and stock market.

Hopefully something gets worked out with the banks. Mining bust has a long way to play out.

 

Whyalla = Why bother?

 

Looks like administration is inevitable
Whyalla's blast furnace is the steel elephant that Arrium should have culled

 

The difference really is that unlike Moranbah, Whyalla wasnt spruiked by every "expert" and their pet dog Spruiker, while all the mum and dads piled on with $ in their eyes for the $2000pw rents.

Apart from Park Trent, few spruikers were mentioning it and its been a steady decline area for years.

 

Just what I was thinking, what a goose.

 

The use of steel from Spain in an $8.3... - Football meat pies kangaroos and Turnbull/ Abbott LIES | Facebook

 

SA steelmaker Arrium enters voluntary administration

Voluntary administration it is.

 

Would be nice to have a state government the supports it's own for once. Adelaide oval redevelopment and the new RAH building all imported steel.

We are a steel supplier in Adelaide so get to see all the joy of it

 

Having recently bought a property off Arrium, I can assure you their actions and decisions before, during and subsequently after the sale reflect the type of 'management' this company has been under.

Looks like my $1mil odd contributed to zip in the grand scheme of things.

pinkboy

 

whyalla - another terry ryder favourite hotspot....

 

The share went into a trading halt yesterday,now the final punch,and with SA having some of the highest unemployment numbers in the country,something like this with all the supply chains could number above 10,000 people not good in anyway..

 

Effects the future projects as well. There was some talk of rail expansion earlier, but that has been shelved as well.
Car industry yet to close down fully. Not looking good for SA.

 

LOL...same here, remember my wife asking me, what is he doing

 

Sounds like the 10,000 jobs at risk are spread around the country

 

Yes it would be a big spread all over Australia,some of the poor buggers who have been there for over 20 years,would find it very hard,but BIGbill shorten seems to know what to do with all the media,and labor's robin hoods policy plans..

 

Bill Shorten did not:

• Allow dumping. The world is awash with Chinese steel
  
• Assign contracts to foreign companies.
• Mismanage and speculate.

Tax payer guarantees of banks and banker's speculation (Macquarie drags taxpayers on global junk binge - MacroBusiness) is ok, but supporting local industry is not .

 

@willair what happened to the deleted comment "from the silent...." It was just getting interesting. Care to elaborate about the Panama Papers ?

 

Just something that people send me for free,most is just noise or it may be a simple one page signal that spreads that wide in worldwide financial economics,as no one is good on dominating the odds..

 

Why is any of this surprising? As unfortunate as it is, the sa govt saw this coming. ..as did many others who know steel is cyclical and currently in oversupply (and been for a while) hence margin squeeze and high cost producers like this company are going be under pressure.