The first day of the Annual Meeting and Conferences of IISI in Turkey

The first day of the Annual Meeting and Conferences of IISI in Turkey

The executives of the major steel producing companies of the world are welcomed to the 38th Annual meeting and Conferences of the IISI, by Mr. Recai Berber, chairman of the host company Erdemir. In his speech Mr Berber expressed his pleasure in hosting this very important event in Istanbul, and gave the participants some brief information about Erdemir's history and current investments. Later on, Mr. Kirby Adams, the Chairman of the IISI and Managing Director and CEO of BlueScope Steel has recalled the amazing changes the worldwide steel industry has experienced during the last four years, from being very pessimistic to the historical peaks in terms of pricing and more importantly very profitable times. But he has also emphasized that the long term outlook will only remain positive if the steel industry executives continue to address the challenges ahead. He has pointed out six areas that the steel industry should focus on starting with restructuring. Underlining the fact that other industries like oil and aluminum have become revitalized by consolidation, Adams said top three producing companies in the US, EU and Japan now account for more than 50% of the total steel output in their respective markets now. He said the consolidations and alliances would help the steel companies become stronger, and added that the steel companies must have the courage to produce less when necessary giving the very successful example of the domestic steel industry in the EU. Kirby Adams has also addressed the issues of volatility, the raw materials situation as challenges ahead. He thinks the steel industry should invest in raw material supply chain. While he believes raw material suppliers should feel responsibility about their pricing, he has also said that customers should feel the responsibility to support steel, and not stop buying steel due to raw material pricing as in such case everybody will be losing. Adams said IISI must continue its stand against steel subsidies and excessive government interference in the steel industry. He has also urged the steel industry to spend wisely on innovation instead of simply building new capacity on today's profits and work to reward the shareholders of the companies. As for the sixth and last pillar, Adams addressed the issues of safety and environment. The Secretary General of the IISI, Ian Christmas has informed the participants during his speech that, IISI has decided to appoint a senior figure, yet to be named, to act as their ambassador who will conduct informal talks with governments and steel industry around the world. This ambassador will try to find ways to sort out differences, as part of IISI's effort to restart the OECD talks next year. Christmas said that IISI has full support of the OECD Deputy Secretary General in charge of the negotiations.