Steel Producers at IREPAS: Producers need to find new opportunities while preserving margins

Speaking on March 24 at the SteelOrbis 2015 Spring Conference & 72nd IREPAS Meeting in Paris, the chairman of the steel producers committee, Kim Marti, who is the international sales director of Spanish steel producer Celsa and also chairman of IREPAS, stressed that there are three major points for steel producers: the markets are growing, Chinese exports are expected to continue putting pressure on the markets, while big producers are adjusting their production according to market conditions.
 
Mr. Marti said producers have to find new opportunities, while in the meantime they also have to preserve margins by adjusting production. He said that, regarding the EU, its economy is expected to grow by 1.5 percent and customers are financially healthy, making business more possible. The IREPAS chairman indicated that Turkey is in intense competition with China, while it is challenged by low demand in neighboring countries, such as Iraq and Syria, due to political unrest. Turkish exporters have been finding alternative markets in Africa and South America.
 
The steel producers committee chairman said that, with the weaker ruble, Russia has focused on the export markets and domestic demand in the country is expected to decrease by 10 percent, while steel mills affected by the conflict in the eastern region of Ukraine have started to recover. Ukraine's billet exports stand at 100,000 mt per month. Sharing forecasts regarding the GCC countries, Mr. Marti stated that demand in Qatar is expected to increase by seven percent and the UAE will continue to see strong demand supported by Expo 2020. He indicated that, if oil prices remain low, steel producers will have to make some adjustments, though this will not have a dramatic effect on the region's steel demand.
 
Looking at South America, Brazil is suffering a little bit because of political uncertainty, while other countries in the region are enjoying healthy conditions. Mr. Marti also said that seven percent GDP growth is expected in the Philippines, while construction there is growing as well. He added that the country needs 150,000 mt of billet per month, and with new production capacities coming online the country will be self-sufficient.