While by now everyone is aware that the global supply-chain shock is truly historic and getting worse by the day, with used car prices rising sharply again and over 30 million tons of cargo waiting outside US ports ahead of the holiday season, few have considered what realistically could normalize these frayed supply chains.
Improved chip supply driven by post-Delta factory restarts and eventually by expanded production capacity;.
While some viewed Goldman's forecast for a Q4 improvement in chip supply chains - a critical factor for renormalizing auto production - as overly optimistic a little noticed comment in today's US Steel conference call suggests that Goldman may have been spot on.
Earlier today, US Steel jumped as much as 15%, its biggest gain since March 8, after the company announced a stock buyback, a hike in dividends and third-quarter EPS that beat analyst expectations.
It's what US Steel CEO David Burritt said toward the end of the prepared remarks in its conference call that was most surprising.
No surprise that former JPMorgan news aggregation maven and current publisher of VitalKnowledge Media, Adam Crisafulli, called US Steel's observation "The most important comment from any earnings call this morning."
While it isn't clear what specific macro economic shift may have catalyzed this improvement: after all, West Coast port logjams are about the worst they have ever been, if US Steel's channel checks are accurate and automakers are indeed ramping up production, then one of the biggest supply chain bottlenecks may indeed now be behind us.
https://www.zerohedge.com/markets/surprising-disclosure-us-steel-suggests-chip-shortage-finally-over
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