Thinking Beyond Survival

SteelOrbis hosts 2^nd Annual Steel Trade Conference of the Americas and Trading Workshop

SteelOrbis held its second-annual Trading Workshop and Steel Trade Conference of the Americas from July 29  to 30 in San Diego, California. Despite the difficult market conditions, the inaugural event brought together a host of professionals from all segments of the steel industry, from steel producers, to distributors, to traders, as well as representatives of related industries such as logistics and raw materials, all of whom gathered with the goal of thinking beyond mere survival and looking towards the future.

The steel industry has undergone some very trying times since SteelOrbis' first-annual Steel Trade Conference of the Americas was held in July 2008. While last summer, the market mood was downright jubilant as the American and global steel markets were riding high on record profits and soaring prices, this year's event was held under far less favorable circumstances, as prices and demand for many steel products have been effectively cut in half, and the industry has had to curtail production by the same degree. However, despite the tough business environment, and perhaps because of it, the attendees of this year's event deemed it crucial for their businesses to convene to discuss the sober task at hand: recovering from this Great Recession.

The overall mood at the event was probably best summarized in a statement made by SteelOrbis CEO Murat Eryilmaz in his opening remarks of the Steel Trade Conference. Mr. Eryilmaz said that while the industry is still reeling from the past year's events, most would agree that “the worst is now behind us.”

Other speakers and attendees of the Conference echoed Mr. Eryilmaz' remarks, with several presenters commenting that although we are not going back to year-ago prices anytime soon, the inventory de-stocking phase seems to finally be over, as buyers of both raw materials and finished steel products are now starting to replenish their supplies. Of course, the economy remains the greatest challenge going forward, and while there are some green shoots cropping up around the world and the US economy is projected to start a slow recovery in the second half of this year, high unemployment and weak consumption will remain significant hurdles for the steel industry and economy at large.

Speakers at Workshop and Conference included a variety of respected industry executives and analysts, including (in alphabetical order): Brian Archer, Trading Manager - Wire Rod & Rebar at Corus International Trading Ltd.; Thomas Danjczek, President of Steel Manufacturers Association (SMA); Alan Gin, Associate Professor of Economics at the University of San Diego; Alberto Hassan, Founder & President of the Hot Briquetted Iron Association (HBIA); David Hodary, Director of Marketing and Communications, David J. Joseph Company; Lewis Leibowitz, Partner, Hogan and Hatson LLP; Mike McCall, Chairman, Wire Reinforcement Institute; Stephen Miller, Managing Director, Ferrosource Division of Stemcor USA; John Packard, Publisher of Steel Market Update; Anton Posner, Senior Vice President of MID-SHIP Logistics; Paul Shellman, Commodity Risk Management Consultant at CME; Jim Tregenza, Vice President and Chief Operating Officer at TMK IPSCO; and Lotta Ulfsdotter, Business Manager Steel at the London Metal Exchange.

The speakers of Session 1 of the Steel Trade Conference -- Thomas Danjczek of SMA, Economist Alan Gin; and David Hodory of DJJ -- focused on the economy and scrap markets, while Session 2 featured outlooks for the major steel product markets: wire rod, rebar, tubulars and flats (see Session 2 panel picture for list of speakers). Finally, speakers at Session 3 – including trade law specialist Lewis Leibowitz and Lotta Ulfsdotter of LME -- discussed steel trade legislation and steel futures. Session sponsors included the Port of Longview and London Metal Exchange.

Attendees of the optional Trading Workshop held in conjunction with the Steel Trade Conference had the unique experience of learning the ins and outs of the steel trade from the pros, including Alberto Hassan of HBIA, Murat Askin of SteelOrbis, Anton Posner of MID-SHIP and others, with topics covering all aspects of the steel supply chain, from raw materials, to steelmaking, to steel transportation and financing. The idea behind SteelOrbis' Annual Trading Workshop is that every steel industry professional, from young traders to seasoned mill executives, can always more to learn about the industry by learning about the different segments of the supply chain.

In addition to the insightful commentaries from the speakers at this year's event (full PowerPoint presentations are available for download to attendees of the conference at www.steelorbisevents.com), attendees also enjoyed many networking opportunities including the Welcome Reception, sponsored by the Port of San Diego, and a Cuban-themed Gala Dinner, complete with live music and salsa dancing. A Port of San Diego Cargo Terminal Tour and Bay Cruise, sponsored by the Port of San Diego, was also part of the event's activities.

All in all, the event provided insightful analysis of market conditions, while simultaneously offering a relaxed setting for making new business contacts, as well as a unique industry  education opportunity through the Trading Workshop. Most importantly, the steel professionals that attended the event were able to unite and strengthen their community in spite of the daunting business conditions.