Events
Pricevolatility, overcapacity, and tradebarriers—oh my!
IREPAS event attendees discuss the many concerns face the global long steel industry, but positive economic signs abound
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he 69th meeting of IREPAS (International Rebar Exporters and Producers Association) was held in Istanbul, Turkey on September 2224, 2013. ere were 120 producer representatives amongst the 407 registered delegates from 49 different countries. Kim Marti was named as Chairman of IREPAS, replacing Ugur Dalbeler. Ioannis Meimaroglou, Chairman of the Raw Materials Suppliers’ Committee, confirmed that a record high number of 42 representatives attended the committee meeting in Istanbul. Meimaroglou stated that the raw material suppliers fully understand the difficulties steel producers are facing in selling finished products under prevailing market conditions, and their efforts to reduce their costs, including the costs of raw materials. He went on to emphasize that scrap suppliers are indeed trying to reduce their scrap collection prices, while adding that they are facing some major issues. First of all, he pointed to the difficulty presented by domestic market competition in any country where scrap demand increases because of the introduction of new steel capacities, or because the winter is coming, or because steel mills want to take advantage of low scrap prices. Meimaroglou went on to say that scrap prices are influenced by prices of other raw materials, including iron ore and steel billet, which can be used—as they are now—as an alternative when prices allow it. He said that it is impossible to achieve the greater degree of stability that scrap suppliers are seeking in
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order to better plan their medium-term activity. Due to unpredictable market conditions, scrap suppliers are keeping their inventories low, which in turn results in increased volatility. He also said that, when scrap prices are going down and margin expectations also diminish, a significant number of scrap collectors halt their activities, which leads to reduced scrap availability. Meimaroglou added that official policies and regulations, especially in some countries, are completely hostile to scrap exports, aiming to limit them as much as possible. Furthermore, financing by banks—due to the general economical situation, but also due to problems which have arisen in recent years in the steel sector—is becoming more and more difficult to obtain and more limited, Meimaroglou said, adding that the dollar exchange rate is becoming an important factor in cost creation, affecting the market and competition in different areas. In conclusion, Volume 7; Issue 1
he underlined the general view among all participants that scrap suppliers are currently going as low as they can in terms of prices while still managing to provide steel mills with regular supplies of good quality material. “Scrap exists. But we need real workable prices, allowing us to collect and to deliver properly to our clients,” he concluded. Representing the Traders’ Committee, F.D. Baysal said that the antidumping petition in the US against rebar imports from Mexico and Turkey has become a major concern for traders as they are worried Turkish and Mexican rebar imports to the US might stop while the investigation is being carried out. Turkish participants at the event, including steel producers and steel exporters, all stated that the dumping claim is groundless and that, even if a decision of injury is reached, dumping margins close to zero will be decided. Furthermore, the Turkish participants, including the Turkish Steel Exporters’
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