Ugur Dalbeler, chairman of IREPAS, the global association of producers and exporters of long steel products, as well as CEO of Turkish steelmaker Colakoglu Metalurji, has said that in 2013 the main problem in the steel industry will continue to be high capacity utilization. He was speaking during the SteelOrbis 2013 Spring Conference & 68th IREPAS Meeting held in Doha on March 3-5.
Mr. Dalbeler underlined that higher capacity utilization continues to result in narrower margins, since higher production means increased raw material needs and higher raw material prices as a consequence. He added that new capacities are being added all over the world, with the exception of Europe, where strict discipline has been observed since the start of the world economic crisis.
The IREPAS chairman told attendees at the Doha event that protectionist measures are expected to remain on the agenda of the steel industry, such as the 6.8 percent import duty in Egypt imposed on rebar and wire rod. Mr. Dalbeler also emphasized that Russia still imposes a 15 percent export duty on scrap, despite its obligation to reduce this duty gradually by 2.5 percent every year beginning from August 2012, as per the regulations of the WTO, of which Russia became a member in August 2012. Dalbeler said that protectionist measures are nothing but short-term solutions, although they have a negative impact on the economy in general and on competition, going on to stress that IREPAS is advocating for fair trade.
Mr. Dalbeler stated that the year 2012 was a period of survival, even more difficult than 2008-2009. According to the IREPAS chairman, the main issues were the crisis in the euro zone, the slowdown of the Chinese economy and the fiscal cliff in the US. Although these issues have not been left behind entirely, Dalbeler said that he is not pessimistic, since a 3.5 percent increase is expected in world steel consumption, with almost every region giving signs of improvement, except Europe.
Expressing his surprise about the rapid development he has witnessed in Doha, where the SteelOrbis/IREPAS event is being held, Dalbeler stated that steel consumption in the GCC continues to grow and that the
Middle East in general still has significant growth potential, especially when the political problems in Syria and Iran are resolved.