The 20th Annual Port of Tampa Steel Conference, hosted by the Tampa Port Authority and Ports America in Tampa, Florida this week provided warm sunshine during the day, clear skies at night, and a chance for the nearly 400 port and steel industry professionals that attended the event to meet face-to-face with clients, as well as an opportunity to prospect for new ones. Most importantly, the conference offered a forum for steel market players to discuss what's ahead for their industry in these turbulent times.
The latter half of 2008 was a very difficult time for just about everyone in the steel industry, and the first seven weeks of 2009 have not proven to be much better, as demand for freight and products have remained at startling lows. However, the speakers at the Tampa event focused primarily on what companies and individuals can do to help their respective businesses continue to survive and grow, as well as what they may expect in the future.
The conference schedule was highlighted by some of the steel industry’s most influential speakers including: Mario Longhi, president and CEO of Gerdau Ameristeel Corporation; Bob Holt, vice president of sales and marketing for ThyssenKrupp Steel USA; Murat Askin, general manager of SteelOrbis Americas; and Lewis Leibowitz, international trade attorney partner with Hogan & Harston, LLP.
Mr. Longhi expressed his view that the infrastructure spending portion of the stimulus package is not large enough to fix the nation's aging infrastructure, roads and bridges; however, when asked the question of how much of an increase he could see for the long products that Gerdau Ameristeel produces, he replied, “If the production rates stay as they are today, it could mean as much as 25 percent increase in production for long products.”
Mr. Holt's presentation focused mostly on the steelmaking facilities ThyssenKrupp Steel is constructing in Alabama. When complete, Mr. Holt believes that facility will be a low-cost steel producer comparable to other American steel producers and will be able to obtain a premium from the market for its quality. Mr. Holt also indicated that there are also currently no plans to build a melting facility in the US.
Lewis Leibowitz, a trade attorney who is a vocal advocate for steel consuming industries, touched on the subject of whether there will be new antidumping and countervailing duties imposed in 2009. He indicated that it is hard to make such a prediction given the current market conditions. t. “Technically, everyone is subsidized right now,” said Mr. Leibowitz. “The stimulus package itself is a subsidy.” He also added “If the cases are filed, you have to prove injury. Everybody is hurting in a market where imports are declining as fast as demand.” According to Leibowitz, it is up to International Trade Commission to figure out these difficult questions.
Together, the four speakers touched on the current and potential future of the steel industry by discussing pertinent topics of steel demand, trade legislation, and world economics. But perhaps Mr. Askin summed up the whole conference, in his speech entitled, “How to Make The Most Of A Tough Market,” by stating, “Now’s the time to beat your competition.”
Mr. Askin presented the view that no one is doing very much business right now, so now is the time to analyze your strengths and weaknesses and take advantage of what opportunities may be available to you, while other companies are more focused on just surviving.
(Picture: at podium- Steve Erb, vice president of Ports America Florida, Inc.; at table from left- David Phelps, president of American Institute for International Steel (AIIS); Mario Longhi, president and CEO of Gerdau Ameristeel Corporation; Bob Holt, vice president of sales and marketing of ThyssenKrupp Steel USA; Murat Askin, general manager of SteelOrbis Americas; Lewis Leibowitz, international trade attorney partner with Hogan & Harston, LLP)
