With a long and successful career in international trading you decided to join Steelcom. Can you please tell us what inspired this decision?
I saw in Steelcom a worthy challenge to develop an already well established, regionally active steel trading company into a more global enterprise.
What is your general sentiment regarding the tendency of the markets today, following two depressed quarters? How do you see the steel markets handling such depressed conditions?
First of all, the market players themselves bear part of the responsibility for today's situation due to their greed during the constant price increases in the first and second quarters of 2008, when consumers were placing more orders than their actual needs accounted for in order to secure supplies. This led to a situation of overstocking which eventually contributed to the collapse of the steel market. Currently we are still in a destocking phase in many markets, and this, taken together with the current credit crunch, will, in my opinion, mean a continued depressed market for the remainder of the year, with consumers mostly replacing stocks to a minimum and with short lead times.
As an international trading house, your view of the global steel market is important. Thus, which world markets have been most affected by the global tightening?
For sure, the United States, Europe, and partly the Middle East (Dubai)
What do you think about the latest partial recovery in the international longs market?
I strongly believe that the recent recovery is not going to last too long because we are witnessing a general lack of robust demand and also, as mentioned before, very cautious purchasing behaviour by steel consumers; this leads me to assume that we will most likely see demand and prices fluctuate with brief up and down swings for the remainder of 2009.
What is your opinion about the longs demand coming from the North African market? Have you also turned your direction to this region after the demand tightening observed in the most of the global markets?
Steelcom has always had a presence in certain North African markets. We do not think that the demand in North Africa is exceptionally good right now, although this impression may have developed of late as the demand has gradually become a bit more stable than in other markets. This does not mean, however, that there is exceptionally strong demand in this region.
Apart from the demand from North Africa and the UAE, what other countries are expected to show strong demand?
It is almost impossible to say at the moment. China does seem to have good demand, but the Chinese economy is about to feel the economic problems of its major export markets, the US and Europe. Reduced exports of consumer goods may indirectly influence the demand for steel products in China. Other than that, the Middle East and some of the BRIC countries, like India, appear to show solid demand.
What kind of perspective do you have on future price trends?
It appears that we will face a high degree of fluctuation as well as up and down swings in the near future, and these individual cycles will probably be of relatively short duration.
Has Steelcom any plans for expansion, for new offices, etc.?
Steelcom is definitely looking at selective and qualitative growth opportunities and, as such, also at the establishment of additional offices, besides our existing ones in Dubai, Istanbul, Cairo, Kiev, Madrid and our latest activity in São Paulo. Wherever a market or region offers Steelcom a chance to pursue our idea of growth, we will examine the establishment of a physical presence.
What impression have you gained of the iron and steel markets from the latest IREPAS meeting?
This latest IREPAS meeting pretty much confirmed the prevailing uncertainty with respect to future market development. Across the industry people are having a hard time making reasonable predictions with regard to demand, pricing trends, etc.
You have been a senior participant at the IREPAS meetings for many years now. You are one of the most familiar faces. What do you think of the changes introduced at the IREPAS meetings during the last five years? What would be your expectations or suggestions for the IREPAS meetings in the future?
I would like to see a continuation of the traders' and the mills' committee meetings; yet, it would also be useful to arrange a joint session and to allow them to share and discuss their individual views of the market developments. This would help promote a better understanding for each side of the business. One could in return reduce the time frame for the presentations on individual markets, which seem to be increasingly utilized for putting forward certain speakers' companies.