19:00 – 22:00                   Welcome cocktail at Swissôtel The Bosphorus

Day 2: Monday, September 18, 2023

09:15 – 09:30                  Welcome address by Chairman of IREPAS

09:30 – 11:30                    SESSION ONE: Critical changes in the global long steel markets

- Keynote speech:

• Figures and comments from WTO report
• Illicit nature of EU’s decarbonization subsidies
• How protectionism has evolved
• Chinese steel industry’s restructuring and opening up to global markets
• New threat: Circumvention
• Turkish steel industry: Standstill period
• Threats from US

Ugur Dalbeler, CEO, Colakoglu Metalurji / Deputy Chairman, Turkish Steel Exporters’ Association / The Board Member, World Steel Association

- Long products market outlook

• Overview of global construction sector
• Steel and long products consumption
• Rebar markets
• International price situation

Alexander Gordienko, Export Director, Celsa Group 

- GCC market outlook

• The announced projects in KSA – when will they start and how it will change the market
• Exports from GCC
• Overall potential longs demand supply balance in GCC

Sunil Kumar, Chief Marketing Officer, Jindal Shadeed Iron and Steel

- Chinese steel market outlook

• Expectations in Chinese steel market

Huseyin Ocakci, Assistant General Manager, CIEC

11:30 – 11:50                     Networking break

11:50 – 12:45                     SESSION TWO: World economy in short, medium and long run

- Keynote Speaker: Prof. Dr. Ozgur Demirtas, Chair Professor of Finance, Sabanci University

12:45 – 14:30                    Networking lunch

14:30 – 16:30                    IREPAS Committee Meetings

• 14:30 – 16:30 IREPAS Producers Committee (by invitation only)
• 14:30 – 16:30 IREPAS Raw Material Suppliers Committee (by invitation only)
• 14:30 – 16:30 IREPAS Traders Committee (open to all attendees)

19:00 – 24:00                  Gala dinner at Divan Kuruçeşme

Day 3: Tuesday, September 19, 2023

10:00 – 11:30                   SESSION THREE – Panel with Committee Chairmen

• IREPAS Producers Committee
• IREPAS Raw Material Suppliers Committee
• IREPAS Traders Committee

Of the many deserving long-term contributors to the IREPAS community, several were awarded plaques at the gala dinner held at the 79th meeting in Istanbul, which marked the 35th anniversary of the foundation of IREPAS.

Ioannis Meimaroglu, Chairman of the Raw Materials Suppliers’ Committee, confirmed that a record high number of 42 representatives attended the committee meeting in Istanbul. Meimaroglou stated that the raw material suppliers fully understand the difficulties steel producers are facing in selling finished products under prevailing market conditions, and their efforts to reduce their costs, including the costs of raw material. He went on to emphasize that scrap suppliers are indeed trying to reduce their scrap collection prices, while adding that they are facing some major issues. First of all, he pointed to the difficulty presented by domestic market competition in any country where scrap demand increases because of the introduction of new steel capacities, or because the winter is coming, or because steel mills want to take advantage of low scrap prices.

Mr. Meimaroglou went on to say that scrap prices are influenced by prices of other raw materials, including iron ore and steel billet, which can be used – as nowadays – as an alternative when prices allow it. He said that it is impossible to achieve the greater degree of stability that scrap suppliers are seeking in order to better plan their medium-term activity. Due to unpredictable market conditions, scrap suppliers are keeping their inventories low, which in turn results in increased volatility. He also said that, when scrap prices are going down and margin expectations also diminish, a significant number of scrap collectors halt their activities, which leads to reduced scrap availability.

Meimaroglou added that official policies and regulations, especially in some countries, is completely hostile to scrap exports, aiming to limit them as much as possible. Furthermore, financing by banks – due to the general economical situation, but also due to problems which have arisen in recent years in the steel sector – is becoming more and more difficult to obtain and more limited, Mr. Meimaroglu said, adding that the dollar exchange rate is becoming an important factor in cost creation, affecting the market and competition in different areas. In conclusion, Meimaroglu underlined the general view among all participants that scrap suppliers are currently going as low as they can in terms of prices while still managing to provide steel mills with regular supplies of good quality material. “Scrap exists. But we need real workable prices, allowing us to collect and to deliver properly to our clients,” he concluded.

Representing the Traders’ Committee, F.D. Baysal said that the antidumping petition in the US against rebar imports from Mexico and Turkey has become a major concern for traders as they are worried Turkish and Mexican rebar imports to the US might stop while the investigation is being carried out. Turkish participants at the event, including steel producers and steel exporters, all stated that the dumping claim is groundless and that, even if a decision of injury is reached, dumping margins close to zero will be decided. Furthermore, the Turkish participants, including the Turkish Steel Exporters’ Association, categorically denied that any government incentives were being provided for the Turkish steel industry. Some US-based traders speaking at the Traders’ Committee Meeting expressed their concerns regarding the lack of alternative sources of supply besides Turkey, stating they could not name any supplier country other than Turkey which “can supply rebar in any size, in any grade, in any volume and at any time.”

F.D. Baysal said that traders are expecting scrap prices to go down further for a while and then to stabilize, while iron ore prices are expected to decline for longer than scrap prices. Baysal also mentioned the possibility of an antidumping investigation being launched in the US against wire rod imports.

Ugur Dalbeler, Chairman of the Billet Suppliers’ Committee, said that Turkish billet export prices have not been competitive in recent times due to upward pressure coming from scrap prices, leading to a 40 percent year-on-year decrease in Turkey’s steel billet exports so far in the current year. On the other hand, Dalbeler said that steel billet export suppliers from the CIS have more competitive prices and increased sales to Turkey as a result, also given the higher billet prices in Turkey. Dalbeler stated that the situation in the US market is now good, while the euro zone is reviving slowly in terms of steel market activity. “After a difficult year in 2013, we hope to start seeing those old good days by 2015 and 2016,” he concluded.

Kim Marti, Chairman of the Rebar and Wire Rod Suppliers’ and Producers’ Committees, stated that global rebar and wire rod demand is growing, with further growth also expected next year. Commenting that Europe is emerging from its recession and is witnessing a more positive construction outlook, which will drive steel demand higher, Marti added that the economic outlooks for the US, Europe and Japan are positive and, since these three economies account for more than 70 percent of world GDP, the general outlook for the global economy is considered to be positive. He mentioned that the European mills were adjusting their capacity carefully in line with demand, before going on to say that oversupply is still an overwhelming problem in the world steel industry, with some regions where capacities keep on rising, such as in China. Marti also said that steel markets in the Gulf region, the GCC and more particularly in the UAE are performing quite well.

He also indicated a number of challenges which the steel industry is facing, namely, volatility of prices, overcapacity in the industry, credit restrictions and trade barriers, while also stating that the steel trade is becoming more regionalized.

Kim Marti has been working for Celsa Group since 1990 in different commercial roles. Among the most recent of these roles was Commercial Director of Celsa UK 2003-2008, after which he moved back to headquarters in August 2008 to be appointed International Sales Director for the group.

• Byer Steel Corporation
• Cascade Steel Rolling Mills Inc.
• Commercial Metals Company
• Gerdau Ameristeel Inc.
• Nucor Corporation

The petitioner alleges that rebar imported from Mexico and Turkey is being or is likely to be sold at less than normal value within the maning of the relevant sections of the Tariff Act. Petitioner further alleges that Turkish producers and exporters of rebar into the United States have benefited from subsidies that are countervailable within the meaning of the same act, and also alleges that these unfairly-traded imports have materially injured the United States domestic industry producing rebar and threaten to cause further material injury if remedial action is not taken.

The AD petitions allege the following dumping margins:

1. Turkey – a range of 41.93% to 42.49%.
2. Mexico – 66.76%.

The countervailing duty (CVD) petition identifies a number of subsidies allegedly used by Turkish rebar producers, but it does not quantify an alleged CVD margin.

The scope of the petition is as follows: Steel concrete reinforcing bar imported in straight length or coil form, regardless of metallurgy, length, and diameter.  Specifically excluded are plain rounds (i.e., non-deformed or smooth bars).

These products are usually classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers 7213.10.0000, 7214.20.0000, and 7228.30.8010.

Speaking on behalf of the producers and exporters of long steel products; IREPAS Chairman Ugur Dalbeler said it is highly likely that the US ITC will accept the petition and start an investigation. However he said, the dumping margins alleged by the US producers are ungrounded. Mr.Dalbeler added “Free trade is one of the few unambiguously good things and it is based on the idea of comparative advantage. Most commodities freely trade around the world and this allows resources to flow to their best use. Countries and companies that have embraced this message have thrived and prospered. Those that tried to close themselves off from this trend have not. Competition increases efficiency and serves customers and the public. IREPAS always supports free and fair trade in steel.”

The opening session of the conference continued with the following presentations:

Keynote Speaker: Kim Marti Subirana, CELSA Group Commercial Director
Global macroeconomics and long steel products market
SESSION ONE – GCC and MENA long products markets

Saudi Economy and Steel Markets; current situation & future outlook
Adel Al-Mughram, Senior Marketing Manager, Long Products, SABIC

MENA Markets Summary Forecast, Markets & Steelmaking
Juma Al Mansouri, Assistant Vice President Emirates Steel

North African Industry
Hadi Hami, General Manager, Norecom Group

The 68th meeting of IREPAS (International Rebar Exporters and Producers Association) was held in Doha on March 3-5, 2013. There were 76 producer representatives amongst the 210 registered delegates from 60 different countries.

Yusuf Guven, chairman of the IREPAS Raw Material Suppliers Committee, said that the iron ore inventory strategies implemented in China resulted in increased iron ore prices. He went on to state that China has been importing scrap from the US in line with the uptrend in iron ore prices and, because of this, some scrap availability issues have been seen in the rest of the world. Contrary to the usual seasonal winter situation, scrap inventories have not been available at US ports this winter. Also, domestic scrap prices in the US have moved upwards by $20-40 per ton.

Mr. Guven added that an increase in scrap consumption has been observed in Europe, while demand for steel is expected to remain strong in Turkey. He stated that it is not possible to say scrap is in short supply when looking at the global situation, noting that a certain supply and demand equilibrium exists in the market.

In conclusion, the chairman of the Raw Material Suppliers Committee told participants at the Doha meeting that there are no expectations of high volatility in scrap prices globally, while greater pressure may be seen on prices since scrap consumption is increasing.

Michael Setterdahl, chairman of the Traders Committee, stated that customers worldwide currently prefer to keep their inventories at low levels and to maintain a “sit and wait” stance. “With improved political stability, people will think more optimistically, and when they think like this they buy more steel,” he added, underlining that the trends in scrap and iron ore, coking coal and natural gas are key when watching the global markets. In addition, shortages of electricity, in China for example, should be observed.

The chairman of the Traders Committee also remarked that the economic situation is ready to take off.

Mr. Setterdahl concluded by saying that it is good to see no negativity in the MENA region, while trade between the GCC countries has increased and so the supply and demand situation is more balanced in the region; however, he added that it is unclear whether this situation is permanent.

Ugur Dalbeler, chairman of IREPAS and of the Billet Suppliers Committee, stated that in 2012 the low trend of iron ore prices put pressure on flat product prices. As a result, producers preferred to produce billet rather than slab if they had the option. Even some blast furnaces in Brazil reduced capacity in order not to produce more slabs. Therefore, more billets and less slabs were produced overall in 2012, while in 2013 the expectation is for a significantly reduced
billet output. Mr. Dalbeler said that the committee does not believe that scrap prices will go down and, as steel billet prices seem rather stable, this situation puts pressure on producers.

The IREPAS chairman also said that electric arc furnace-based producers and even integrated mills will either have to raise their prices or they will have to consider reducing their production. In conclusion, he stated, the committee’s view was that, although 2013 seems set to be characterized by sideways price movement, it will definitely be a better year than 2012.

Kim Marti Subirana, chairman of the IREPAS Rebar and Wire Rod Suppliers Committee, stated that 2013 started slower than expected but added that the year will be better than last year as the long steel products market will gain momentum. Business in the Middle East is looking good on the back of ongoing projects, while new projects are also being started. The committee chairman pointed out that new production capacities in the Middle East are on the way and that everything seems under control.

“The Turkish long steel market seems strong with new projects and demand, the Asian markets similarly appear strong, while the situation in Africa is relatively good,” he added. Business in Libya is slow at the moment but the country shows some limited signs of improvement and it is back in the game. Egypt, on the other hand, Kim Marti continued, has been experiencing some restrictions in relation to the US dollar, but business still continues in this country. Although Brazil had been expected to perform better than it actually did, the situation in this country still seems positive, as does the situation in South and Central America. Regarding North America, the committee predicts a good year.

The committee is optimistic regarding 2013 as general demand looks good globally. However, the committee also discussed import restrictions in certain countries, notably in Egypt and Morocco, which constitute a cloud in an overall clear sky.

The emerging markets continue to be important in rebar consumption, Mr. Marti added. He stated in conclusion that long steel product volumes are looking for new markets and this is putting pressure on the markets in question. “We need to correct the supply and demand balance in order not to place pressure on markets,” he said.

Notes to Editors:

IREPAS is a global association of producers and exporters of long steel products. It was founded by CELSA and GERDAU 30 years ago to develop understanding between producers, traders and consumers around the world. Today, IREPAS unites producers, traders, consumers of steel and professionals from the shipping and finance industries.

Please click here to watch the video

The 67th meeting of IREPAS (International Rebar Exporters and Producers Association) was held in Munich between September 30^th and October 2^nd, 2012. There were 80 producer representatives from amongst the 276 registered delegates from 37 different countries.

Ioannis Meimaroglu, the chairman of the IREPAS Raw Material Suppliers Committee, said that steel mills have been trying to secure their orders before finalizing their raw material purchases due to instability and difficulties in the finished steel market, which means that they have been obliged to change their strategy from working on stock basis to working mainly on spot basis. He went on to state that this is affecting steel scrap suppliers very negatively since they cannot collect material on a continuous basis, as they do not know at what price level the material will be sold when their customers come to the market.

Mr.Meimaroglou added that this situation is also posing problems for steel producers, as they can never be sure of steel scrap availability at the requested prices on spot basis.

Underlining that scrap suppliers need time to collect scrap and cannot meet demand from steel mills at short notice, Mr.Meimaroglu said that scrap suppliers understand the concerns of the steel mills and the uncertainty in the steel markets, as steel export destinations become more limited and as Chinese steel exports target steel mills’ traditional customers.

He added; it is also very important for steel producers to help keep their raw material suppliers alive, as the latter are facing pressure from finished steel
markets and also price competition in their domestic markets, as well as fluctuations in currency exchange rates and export regulations.

Michael Setterdahl, the chairman of the IREPAS Traders’ Committee, listed the economical crisis and Chinese exports as major concerns in the market, stating that macro decisions made by some governments, especially China,  have recently been impacting the steel prices more than the producers’ own pricing policies. Mr.Setterdahl added that as long steel production is low globally except for China and Turkey , the outlook for prices of long products in 2013 is positive and recapped the discussions by saying “Everything depends on demand and supply, as always.”

Uğur Dalbeler, chairman of both IREPAS and the Billet Suppliers’ Committee, stated that the recent news on Chinese supply has put some pressure on steel billet prices in the international market. However, he went on to say that the view of the billet suppliers’ committee is that downward price movement may not be seen, as downward pressure on prices is expected to be softened by the oncoming winter season. The IREPAS chairman stressed that the real issue for the producers is to achieve healthy margins in business. The committee agreed there are shortages of scrap and that this is the main reason why billet prices have not decreased further. He characterized the general situation in the global billet markets as being in equilibrium. In conclusion, Dalbeler emphasized that, the
difficulties in scrap collection during winter months will provide support not only for scrap but also for billet prices.

Mohammed Al Saadi, the chairman of the IREPAS Rebar and Wire Rod Suppliers Committee, mentioned that the local Turkish market seems strong, with demand at good levels in the market. While the situation in Qatar and other Arab countries seems healthy with high production capacity utilization rates, demand in these countries is also good on the back of ongoing investments and projects. In the meantime, whereas political issues in Syria and Iran have been affecting the business in a negative way, everybody hopes the situation will be resolved in the short term, Mr. Al Saadi said.

Mr. Al Saadi explained that almost 65 percent of the production in Europe, especially Italy and Spain, is exported, adding that the US and Carribean markets seem stable, while global market conditions in general are likely to continue in their current state until next year. The committee considers the main market
concern to be Chinese supply, which also has a psychological impact on business.

Notes to Editors:

IREPAS is a global association of producers and exporters of long steel products. It was founded by CELSA and GERDAU 29 years ago to develop understanding between producers, traders and consumers around the world. Today, IREPAS unites producers, traders, consumers of steel and professionals from the shipping and finance industries.