Home / Themes / TrumpPolicy PreElection Long '24: Onshoring

TrumpPolicy PreElection Long '24: Onshoring

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Bull / Bear Details has the investment thesis and bull/bear points. Overview is monitoring guidance (hiring, forums, second-order trends, search keywords, Google Trends, datasets).

Bull / Bear Details

A potential Trump administration reinvigorates U.S. onshoring with tariff threats, Buy American mandates, and immigration crackdowns that favor automation-heavy

Thesis

A potential Trump administration reinvigorates U.S. onshoring with tariff threats, Buy American mandates, and immigration crackdowns that favor automation-heavy domestic production. This benefits industrial logistics (GXO), infrastructure tech (TRMB), U.S. steelmakers (STLD, NUE), aluminum (AA), and reshoring of critical minerals like lithium (SQM) and rare earths (KCCA). GOP-aligned fiscal spending and anti-nearshoring rhetoric shift industrial and infrastructure CapEx toward domestic supply chains.

Bull case

  • Automation over immigration: Onshoring gains appeal as stricter immigration policy raises labor costs

  • Buy American bias: Industrial inputs (AA, STLD, NUE) and infrastructure software (TRMB) benefit from GOP procurement

  • Materials reshoring: Lithium (SQM), rare earths (KCCA), and U.S.-friendly metals see heightened strategic importance

Bear case

  • Budget gridlock: GOP priorities stall in a divided Congress, delaying federal procurement and infrastructure outlay

  • Weak private demand: High rates and CapEx fatigue temper onshoring-driven investment despite policy support

  • Trade retaliation: U.S. tariffs invite global backlash, hurting export-facing heavy industry and resource firms

Key Metrics3 rows
MetricCadenceWhat It SignalsUpdate Source
U.S. Critical Mineral Permits & Production VolumesQuarterlyGauges progress on reshoring key materials (e.g., lithium, rare earths for SQM/KCCA)Google_Sheets
Domestic Steel & Aluminum Utilization RatesWeekly (steel), Monthly (aluminum)Real-time capacity signal for infrastructure/materials exposureGoogle_Sheets
U.S. Manufacturing Construction Spend (YoY %)MonthlyCore indicator of reshoring-driven CapEx for GXO, TRMB, AA, STLD, NUEGoogle_Sheets
Upcoming Catalysts45 rows
Catalyst IDEstimated TimingEstimated Date StartEstimated Date EndCatalystWhy It MattersTicker Or Theme SpecificTranscript DateSource TypeCatalyst Source
SQM_36315024ramping up production until almost reaching nameplate capacity by the end of 20262025-07-012026-12-31Ongoing ramp-up of lithium hydroxide production at the Kwinana refinery in Australia to reach its 50,000 tonnes per annum nameplate capacity.Successful ramp-up will increase SQM's higher-value lithium hydroxide sales, potentially improving international realized prices and overall margins, and diversifying its product mix.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_1e91e6f1by mid-20262026-04-012026-09-30Completion and operationalization of the seawater pipeline project, which is expected to be ready during the second or third quarter of 2026, to supply water for iodine production.This infrastructure project will enhance SQM's iodine production capacity and flexibility, potentially allowing it to capitalize on strong iodine demand and maintain its position as a reliable supplier.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_de186b51CapEx program for the period 2025, 20272025-01-012027-12-31Development of a third iodine operation in Maria Elena to add 1,500 tons of iodine capacity, as part of the 2025-2027 CapEx program.This expansion will strengthen SQM's long-term iodine supply position, reinforcing its reputation and potentially increasing market share and revenues in a segment with high prices.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_ee2b3a8fby 20262026-01-012026-12-31Expansion of lithium carbonate production capacity in Chile to reach 240,000 metric tons per year.This capacity increase is crucial for SQM to meet growing global lithium demand, particularly from the EV and energy storage sectors, and maintain its market leadership.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_96887543somewhere next year2026-01-012026-12-31Final investment decision (FID) on the expansion of the Mt. Holland mining and concentrator operations.An FID would signal continued commitment to increasing spodumene concentrate supply, supporting future lithium hydroxide production and SQM's overall international lithium growth strategy.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_fb8cdf94scheduled to be submitted to the SEA Evaluation Service in 2Q 20262026-04-012026-06-30Submission of the environmental impact study for the Salar Futuro project to the Chilean Environmental Assessment Service (SEA).This is a critical early step for a significant future lithium project, indicating progress on long-term capacity expansion and potentially impacting investor sentiment regarding SQM's growth pipeline beyond current operations.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_bb2e1cf7for the coming year2026-01-012026-12-31Evaluation and potential decision to expand SQM's own lithium sulfate production capacity in China.Expanding in-house capacity in China would reduce reliance on third-party tolling, potentially improving cost efficiency and control over a key part of the lithium value chain.Ticker2025-11-19earnings_transcriptSQM (ticker)
SQM_330455a6We expect to be able to finish our seawater pipeline project in the Tarapaca region2026-05-012026-06-30Completion of the seawater pipeline project in the Tarapaca region.This project will provide additional operational flexibility and unlock incremental iodine production capacity, potentially increasing sales volumes and sustaining high prices. Bullish if completed on schedule, bearish if delayed.Ticker2026-02-27earnings_transcriptSQM (ticker)
SQM_cb09556fby mid this year.2026-05-012026-06-30Final Investment Decision (FID) on the expansion of the Mt. Holland mine and concentrator.This decision will determine the future production capacity of spodumene concentrate from Mt. Holland, impacting SQM's international lithium supply. Bullish if approved, leading to increased capacity; bearish if delayed or not approved.Ticker2026-02-27earnings_transcriptSQM (ticker)
SQM_bc26eec9in the middle of this year.2026-05-012026-06-30Application for environmental approval for the Salar Futuro lithium project.This is a crucial step for the long-term development of a new lithium project, indicating future growth potential beyond current operations. Bullish if application proceeds as planned, bearish if delays or issues arise.Ticker2026-02-27earnings_transcriptSQM (ticker)
AA_6cec3253later in the process (Massena East), progressing two other sites in parallel2026-04-242027-04-24Finalization of terms and announcement of monetization for the Massena East smelter site for a data center project, and progress on two other idled sites.Monetization of idled assets can generate non-operating income, improve capital efficiency, and contribute to the balance sheet, positively impacting valuation and investor sentiment.Ticker2026-04-16earnings_transcriptAA (ticker)
AA_963385dethrough the first half of the year2026-04-242026-06-30Continuation or de-escalation of the Middle East conflict and its effects on energy prices, freight costs, and global alumina refinery margins.Escalation would increase costs and reduce demand, negatively impacting Alcoa's Alumina segment profitability. De-escalation would ease margin pressure and improve market conditions.Theme2026-04-16earnings_transcriptAA (ticker)
AA_a866586bthrough the first half of the year2026-04-242026-06-30Increased alumina supply from new refinery projects in coastal China and Indonesia.This new supply is expected to weigh on global alumina prices, potentially impacting Alcoa's Alumina segment profitability negatively.Theme2026-04-16earnings_transcriptAA (ticker)
AA_1f609147now closely watching for the next directional signal2026-04-242026-12-31Announcement or changes in Guinea's bauxite export policy.Guinea is a major bauxite supplier; changes in its export policy could impact global bauxite supply and prices, affecting Alcoa's bauxite costs and Alumina segment margins.Theme2026-04-16earnings_transcriptAA (ticker)
AA_b25c2a19sequentially this year2026-04-242026-12-31Actual global aluminum demand growth, particularly in ex-China markets, and the impact of the Middle East conflict on this trajectory.Stronger demand would support aluminum prices and Alcoa's Aluminum segment profitability, while a further slowdown due to the conflict would be a headwind.Theme2026-04-16earnings_transcriptAA (ticker)
AA_a1e4aac5not yet been felt... just reaching North America now2026-04-242026-09-30North American customers fully experiencing the impact of reduced aluminum supply from the Middle East.This could further drive up regional premiums and spot demand for Alcoa's value-add products in North America, benefiting its Aluminum segment.Theme2026-04-16earnings_transcriptAA (ticker)
AA_25358db3will progress... successfully2026-04-242027-04-24Finalization of agreements with Japanese, Australian, and U.S. governments for the gallium project in Western Australia.Successful progression could unlock new revenue streams and strategic value from critical minerals, enhancing Alcoa's portfolio and potentially attracting government support.Ticker2026-04-16earnings_transcriptAA (ticker)
AA_d7b9f884during the course of the summer2026-06-012026-08-31USMCA negotiations potentially leading to changes in Section 232 tariffs on Canadian aluminum imported to the U.S.Easing of tariffs would significantly reduce costs for Alcoa's Canadian metal, improving Aluminum segment margins. Continued tariffs or new restrictions would be a headwind.Theme2026-04-16earnings_transcriptAA (ticker)
AA_1121d817continue to delever and get into that range, over time working capital should come back out and into cash2026-04-242027-04-24Alcoa reaching its target net debt level ($1 billion to $1.5 billion) and announcing subsequent capital allocation plans (e.g., increased shareholder returns, growth investments).Achieving the debt target provides financial flexibility, potentially leading to increased shareholder returns or value-creating growth opportunities, boosting investor sentiment.Ticker2026-04-16earnings_transcriptAA (ticker)
AA_1bae68b6one to two years for that restart2026-04-242028-04-24Alcoa's decision regarding the restart of the fourth line at its Warrick smelter, considering capital requirements, electricity availability, and operational feasibility.A restart would add 50,000 tons of aluminum capacity, increasing production and revenue, especially in a tight market. However, it requires significant capital and carries execution risk.Ticker2026-04-16earnings_transcriptAA (ticker)
NUE_3450851cwithin the year2026-01-012026-12-31Successful ramp-up of Nucor's new rebar micro-mill in Lexington, NC, melt shop in Kingman, AZ, Nucor Towers & Structures facility in Alabama, and galvanizing/prepaint lines at Crawfordsville, IN to positive EBITDA run rates.Successful ramp-up of these recently completed projects will contribute to Nucor's profitability and demonstrate effective capital deployment, positively impacting earnings and investor sentiment. Delays or underperformance could negatively impact margins and guidance.Ticker2026-01-27earnings_transcriptNUE (ticker)
NUE_2d97925dmid-20262026-05-012026-06-30Commissioning of the new galvanizing line at Nucor's Berkeley County mill.This project enhances Nucor's capabilities and product mix towards higher-margin galvanized sheet steel, supporting growth in key markets. Successful commissioning will contribute to future profitability.Ticker2026-01-27earnings_transcriptNUE (ticker)
NUE_9fc64fc9second quarter2026-04-012026-06-30The new greenfield utility pole production facility in Indiana is expected to begin full operations.This facility expands Nucor's presence in the high-growth utility transmission tower market, contributing to the 'Expand Beyond' strategy and future revenue streams. Successful ramp-up is key to realizing the expected benefits.Ticker2026-01-27earnings_transcriptNUE (ticker)
NUE_31c8d623For the full year2026-01-012026-12-31Nucor's actual steel mill shipments for 2026 compared to its guidance of approximately 5% increase over 2025.Shipment volume is a direct driver of revenue and profitability. Exceeding guidance would indicate stronger demand or market share gains, positively impacting valuation and sentiment. Missing guidance would suggest weaker market conditions or operational issues.Ticker2026-01-27earnings_transcriptNUE (ticker)
NUE_d391d9bfin the year ahead2026-01-012026-12-31Nucor's ability to generate 'meaningfully higher free cash flow' in 2026, as guided by management.Improved free cash flow is crucial for Nucor's capital allocation strategy, supporting growth investments and shareholder returns. Achieving this target would validate the company's financial strength and project returns, boosting investor confidence.Ticker2026-01-27earnings_transcriptNUE (ticker)
NUE_330e971fbeginning with the pickle line in the second quarter. By the end of the year, we expect commissioning, inspecting and testing of all equipment across the mill to be complete. Following commissioning, our priority will be to operate safely and reliably as commercial shipments begin ramping up in early 2027. We will be increasing production and advancing product development throughout 2027 and '28.2026-04-012028-12-31Nucor's new sheet mill in West Virginia will undergo commissioning, starting with the pickle line in Q2 2026, with all equipment commissioning, inspecting, and testing expected to be complete by year-end 2026. Commercial shipments will ramp up in early 2027, with full production and product development continuing through 2028.Successful commissioning and ramp-up will enable Nucor to increase market share in key sheet-consuming regions, expand into higher-value automotive and consumer durable markets, and contribute significantly to future EBITDA and earnings. Delays or issues could negatively impact profitability and sentiment.Ticker2026-04-27earnings_transcriptNUE (ticker)
NUE_5f57ecbcEquipment commissioning is planned for the middle of the year, and we expect production to begin in the fall.2026-05-012026-11-30Equipment commissioning for the second galvanizing line at Nucor's Berkeley County sheet steel mill in South Carolina, with production expected to begin in the fall.This new line will expand Nucor's capacity to service automotive customers in the Southeast, increasing market share and contributing to revenue and earnings.Ticker2026-04-27earnings_transcriptNUE (ticker)
NUE_da3dc217The administration recently put out procedures for submissions by steel or aluminum producers that would be committed to new capacity in the U.S. This is related to the proclamation 10984 on imports of medium and heavy-duty vehicles and vehicle parts. How do you think this could impact potentially the announcement of new capacity in the U.S., steel capacity in the U.S.2026-05-032027-05-03Potential for new steel capacity announcements in the U.S. by other producers, influenced by Proclamation 10984 regarding imports of medium and heavy-duty vehicles and vehicle parts.Increased domestic steel capacity from competitors could alter the supply-demand balance, potentially impacting Nucor's market share, pricing power, and overall industry profitability.Theme2026-04-27earnings_transcriptNUE (ticker)
STLD_d74c386eshift our product mix to a higher-margin mix this year, reaching the planned optimized mix of 45% can sheet, 35% automotive, and 20% industrial sometime in 2027.2026-04-242027-12-31Steel Dynamics successfully shifting its aluminum product mix towards higher-margin automotive and can sheet products, with the optimized mix targeted for 2027.A successful shift to a higher-margin product mix will enhance the profitability of the aluminum segment, contributing significantly to the company's overall financial performance.Ticker2026-04-22earnings_transcriptSTLD (ticker)
STLD_4a675cc7receive approvals in the coming weeks (for finished automotive products) and should receive qualification from several customers in the coming weeks (for first CASH line).2026-04-242026-06-30Steel Dynamics receiving final qualification from several automotive customers for its finished automotive aluminum products and material produced from its first Continuous Anneal and Solution Heat Treat (CASH) line.Automotive qualification is a critical step to access the higher-margin automotive market, enabling the planned product mix shift and improving the profitability of the aluminum segment.Ticker2026-04-22earnings_transcriptSTLD (ticker)
STLD_4f92d316The last of four preheat furnaces will be in service at the end of the second quarter, The third cold mill is expected to begin producing in the third quarter, The second CASH line is expected to begin commissioning in the third quarter.2026-06-012026-09-30Commissioning and start-up of the last preheat furnace by the end of Q2, and the third cold mill and second Continuous Anneal and Solution Heat Treat (CASH) line beginning production/commissioning in Q3 at the aluminum facility.These equipment milestones are crucial for expanding the aluminum facility's production capabilities, increasing capacity, and supporting the ramp-up of higher-value products.Ticker2026-04-22earnings_transcriptSTLD (ticker)
STLD_c2b76393we think we should be around 60,000 to 70,000 tons in the second quarter.2026-04-012026-06-30Steel Dynamics achieving aluminum shipments of 60,000 to 70,000 tons in the second quarter of 2026.This shipment target indicates significant progress in the aluminum facility's ramp-up, directly impacting Q2 revenue and demonstrating operational improvement.Ticker2026-04-22earnings_transcriptSTLD (ticker)
STLD_f94c8d49will positively impact our second quarter results.2026-04-012026-06-30Realization of higher average selling prices for flat rolled steel in Q2 2026 due to the two-month lagging priced contracts from Q1 price increases.This event is expected to positively impact Steel Dynamics' steel segment revenue and profitability for Q2 2026, as a significant portion of their flat rolled business is linked to these contracts.Ticker2026-04-22earnings_transcriptSTLD (ticker)
STLD_c3c0806dexpectations for seasonally increased shipments in the second and third quarters2026-04-012026-09-30Seasonally increased shipments of ferrous and nonferrous scrap from the Metals Recycling Operations in Q2 and Q3 2026, including increases related to further support of aluminum operations.Higher scrap shipments are expected to improve operating income for the Metals Recycling segment and ensure adequate raw material supply for both steel and aluminum production.Ticker2026-04-22earnings_transcriptSTLD (ticker)
SQM_afb45fa4Our first estimation was the first semester. Right now, maybe it will happen in the second semester.2026-07-012026-12-31New iodine production capacity from third parties coming online in Chile.Increased supply from competitors could impact iodine prices and SQM's market share, despite strong demand. Bullish if delays persist, bearish if new capacity comes online as expected.Theme2026-02-27earnings_transcriptSQM (ticker)
NUE_977ac647beginning in July2026-07-012026-12-31Formal review of the USMCA trade agreement, offering opportunities to address steel demand, transshipment through Mexico and Canada, and Canadian steel subsidies.The outcome of the USMCA review could significantly impact North American steel trade dynamics, potentially leading to stronger enforcement against unfair imports, increased domestic demand, or changes in the competitive landscape. Favorable outcomes are bullish for Nucor and the U.S. steel industry.Theme2026-01-27earnings_transcriptNUE (ticker)
NUE_deea7296In Indiana, we expect to be fully operational in the third quarter of this year.2026-07-012026-09-30Nucor's new utility towers facility in Indiana is expected to become fully operational.This facility will contribute to Nucor's Towers and Structures business, expanding its capabilities and market share in the utility transmission tower market, positively impacting revenue and earnings.Ticker2026-04-27earnings_transcriptNUE (ticker)
NUE_883fcf3cwe expect to commission the paint line later this year.2026-07-012026-12-31Nucor expects to commission the paint line at its Crawfordsville, Indiana facility.Commissioning of the paint line will enhance Nucor's product offerings and capabilities in the sheet group, potentially leading to increased sales and improved margins.Ticker2026-04-27earnings_transcriptNUE (ticker)
NUE_a046e5ffas USMCA discussions continue2026-07-012026-12-31Outcomes and specific policy changes resulting from the formal USMCA review, particularly addressing steel subsidies from the Canadian government and the use of North American channels for circumvention.A favorable outcome could strengthen trade protections, reduce unfair competition, and improve the competitive landscape for Nucor and other domestic steel producers. A negative outcome could lead to increased imports or competitive disadvantages.Theme2026-04-27earnings_transcriptNUE (ticker)
NUE_cc212b76our Alabama towers and Structures facility is expanding its customer base, improving production and on track to reach EBITDA positive run rates by the end of the summer.2026-08-012026-09-30Nucor's Alabama Towers and Structures facility is on track to reach EBITDA positive run rates.Achieving EBITDA positive run rates indicates improved operational efficiency and profitability for this facility, contributing positively to Nucor's overall earnings.Ticker2026-04-27earnings_transcriptNUE (ticker)
AA_d8bfdf52by year-end 20262026-10-012026-12-31Ministerial approvals for Alcoa's mine operations in Western Australia.Secures long-term bauxite supply and operational continuity for Alcoa, impacting long-term valuation and sentiment. Delays would be bearish.Ticker2026-04-16earnings_transcriptAA (ticker)
NUE_41306289by year-end2026-10-012026-12-31Completion of construction and initial start-up of Nucor's new sheet mill in West Virginia.This is a major growth project for Nucor. On-time and on-budget completion and successful start-up are critical for future revenue generation, market share expansion in high-value products (automotive, consumer durables), and validating Nucor's long-term growth strategy. Delays or cost overruns would be negative.Ticker2026-01-27earnings_transcriptNUE (ticker)
STLD_f037c963exiting 2026 at a monthly rate of 90% capacity2026-10-012026-12-31Steel Dynamics' new aluminum flat rolled products facility achieving a monthly production rate of 90% of its nameplate capacity.Reaching this capacity target is fundamental to realizing the projected through-cycle EBITDA for the aluminum segment, directly impacting the company's overall earnings and investor sentiment.Ticker2026-04-22earnings_transcriptSTLD (ticker)
SQM_91fd9bcdwe are now expecting ramp-up to move into 2027.2027-01-012027-12-31Completion of the ramp-up phase for the Kwinana lithium hydroxide refinery.A delayed ramp-up into 2027 means sales will be heavily skewed towards spodumene concentrate for longer, impacting product mix and profitability from higher-value hydroxide. Bullish if issues are resolved and ramp-up accelerates, bearish if further delays.Ticker2026-02-27earnings_transcriptSQM (ticker)
NUE_e9c701aaAnd in Utah, we expect to reach full production by mid-2027.2027-05-012027-06-30Nucor's new utility towers facility in Utah is expected to reach full production.This facility will contribute to Nucor's Towers and Structures business, expanding its capabilities and market share in the utility transmission tower market, positively impacting revenue and earnings.Ticker2026-04-27earnings_transcriptNUE (ticker)

Constituents

  • SQMT2
    Sociedad Química y Minera de Chile S.A.
  • AAT3
    Alcoa Corporation
  • Norsk Hydro ASA
  • NUET3
    Nucor Corporation
  • Steel Dynamics, Inc.
  • COLOT3
    · no notes yet
  • GXOT3
    · no notes yet
  • KCCAT3
    · no notes yet
  • TRMBT3
    · no notes yet