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Many have you seen me drop the $KMI in comments as a play on steel. So, who is Kinder Morgan? Kinder Morgan is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 83,000 miles of pipelines and 147 terminals. Our pipelines transport natural gas, gasoline, crude oil, carbon dioxide (CO2) and more. Our terminals store and handle renewable fuels, petroleum products, chemicals, vegetable oils and other products. Now, almost everyone that knows Kinder Morgan knows them as one of the largest natural gas distributors/pipelines in the country. 2019 rankings (as 2020) are not out yet: https://www.aga.org/contentassets/d68b868b7cd94ed2889b704b441ab469/1002totvol.pdf It is going to take a while for natural gas to get back to levels where it is profitable for drillers, but it is still being used and you need someone to distribute it. $That is where $KMI comes into play and they are expanding the distribution and pipelines: Ok, so you understand that they are big and move a lot of natural gas. What they also do is handle logistics for other commodities and where we are concerned: STEEL, SCRAP and COKING COAL. Their terminals handle 59 BILLION TONS of dry bulk goods annually. $KMI's terminals are used to store and ship steel scrap, finished steel coils, slabs, coal etc. Where this becomes juicy is China's entry into the US steel scrap market for the first time in many, many years. https://agmetalminer.com/2020/12/23/chinese-steel-scrap-imports-could-be-market-mover-in-2021/ Do you know who the largest exporter of scrap in the world is? THE UNITED STATES. This was talked about today on $CMC's conference call – China's desire for our scrap and the buying will soon start. $KMI will be one of the main players exporting scrap and importing finished steel goods. They also store product for US Steel manufacturers like $NUE. So, I believe these terminals will be very busy exporting scrap and importing steel to be used in the manufacturing of automobiles and many other products in the US. Also, BTW, this is something I have been holding back on why I like $MT so much and it is the new steel they are manufacturing – their R&D is ahead of many other competitors. More on Ford and $MT R&D: I don't quite think everyone understands something about $MT and that is they are supplying many, many automakers this new steel, this is going to be the real catalyst, on top of steel prices: https://automotive.arcelormittal.com/innovation/customer_statements So, you guys got two DD's for the price of one – nothing. Do your own research and make your own decisions. I am just laying out the facts as I see them and the knowledge I have of the market dynamics. Have a good evening! -Vito submitted by /u/vitocorlene |
