The SteelOrbis Fall Spring Conference & 73rd IREPAS Meeting started in Rome today, October 5, with the participation of almost 300 executives, including 84 representatives from 43 steel producer companies and 30 representatives from 22 raw material suppliers.
IREPAS chairman Kim Marti from Spanish steel producer Celsa stated that the main challenges the long products industry is facing are overcapacity and declining prices. He said that in the next few months China may see a decline in steel exports because some private sector Chinese mills are experiencing financial problems. Mr. Marti stressed that steel is a cyclical business and that this could mark the turning point of the cycle. Regarding declining prices, he commented, “We are closer to the bottom.”
According to Mr. Marti, current economic conditions create both winners and losers. “On the losers’ side, we see emerging economies such as Russia and Brazil experiencing a slowdown, while developed economies such as the US and the EU are seeing an acceleration of growth,” Mr. Marti said. He went on to say that the EU economic sentiment index rose to 105.6 in September this year, the highest since August 2011, which indicates that the EU is overcoming its financial problems.
The IREPAS chairman also pointed out that Chinese economy is changing from being investment-led to being a robust, consistent economy which is based on domestic consumption, adding that he believes business has a bright future in China.