The opening session at the SteelOrbis Spring '11 Conference and 64rd IREPAS Meeting featured the presentation of Kim Marti Subirana of CELSA, who said that demand for long steel products is now consistent and is improving globally. Mr. Marti also remarked that long steel product prices are set on a rising trend for the long term.
Assessing the outlook for the immediate future, Mr. Marti said that the global economic recovery is gathering pace. Regarding the major long steel markets, Mr. Marti told the attendees that long product demand will remain consistent, although the political unrest in the Middle East and North Africa (MENA) region is not helping in the Mediterranean markets. However, the after effects of this depressed period may include increased infrastructure and housing spending to satisfy social needs, boosting demand in the region, Mr. Marti remarked. Regarding the actual market situation in the MENA region, Mr. Marti said that Algeria and Morocco are now performing better, and that the Tunisian market is back on track, even showing an improvement compared to the period before the recent temporary interruption. Egypt is foreseen to recover very soon, Mr. Marti added.
The North American market is accelerating and the Latin American, African and Southeast Asian markets will stay strong, Mr. Marti said, adding that the reconstruction in Japan after the earthquake will create extra demand in Asia and that the country will recover very soon. Mr. Marti pointed out that Europe as a whole still remains the slowest market although north and northeastern Europe are performing much better, acting as the engine for south and southwestern Europe.
Mr. Marti remarked that the volatility in scrap prices has started to indicate deeper lows in a long-term uptrend, in a context of restricted availability, while in the short term buyers' scrap purchases may lift prices in the coming weeks.
According to Mr. Marti, long steel producers located in the slowest markets are monitoring their regional markets in order to maintain production levels in accordance with demand. Margins are still under pressure for these producers, who need to increase their profitability.