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Volume 7; Issue 1
more particularly in the UAE are performing quite well. He also indicated a number of challenges which the steel industry is facing, namely, volatility of prices, overcapacity in the industry, credit restrictions and trade barriers, while also stating that the steel trade is becoming more regionalized. SO \
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Events
Association, categorically denied that any government incentives were being provided for the Turkish steel industry. Some USbased traders speaking at the Traders’ Committee Meeting expressed their concerns regarding the lack of alternative sources of supply besides Turkey, stating they could not name any supplier country other than Turkey which “can supply rebar in any size, in any grade, in any volume and at any time.” Baysal said that traders are expecting scrap prices to go down further for a while
and then to stabilize, while iron ore prices are expected to decline for longer than scrap prices. Baysal also mentioned the possibility of an antidumping investigation being launched in the US against wire rod imports. Ugur Dalbeler, Chairman of the Billet Suppliers’ Committee, said that Turkish billet export prices have not been competitive in recent times due to upward pressure coming from scrap prices, leading to a 40 percent year-onyear decrease in Turkey’s steel billet exports so far in the current year. On the other hand, Dalbeler said that steel billet export suppliers from the CIS have more competitive prices and increased sales to Turkey as a result, also given the higher billet prices in Turkey. Dalbeler stated that the situation in the US market is now good, while the euro zone is reviving slowly in terms of steel market activity. “After a difficult year in 2013, we hope to start seeing those old good days by 2015 and 2016,” he concluded. Kim Marti, Chairman of the Rebar and Wire Rod Suppliers’ and Producers’ Committees, stated that global rebar and wire rod demand is growing, with further growth also expected next year. Commenting that Europe is emerging from its recession and is witnessing a more positive construction outlook, which will drive steel demand higher, Marti added that the economic outlooks for the US, Europe and Japan are positive and, since these three economies account for more than 70 percent of world GDP, the general outlook for the global economy is considered to be positive. He mentioned that the European mills were adjusting their capacity carefully in line with demand, before going on to say that oversupply is still an overwhelming problem in the world steel industry, with some regions where capacities keep on rising, such as in China. Marti also said that steel markets in the Gulf region, the GCC and