Michael Setterdahl from Nucor, chairman of the traders' committee at the SteelOrbis Spring 2013 Conference & 68th IREPAS Meeting held on March 3-5 in Doha, stated that it was the view of traders' committee that customers worldwide currently prefer to keep their inventories at low levels and to maintain a "sit and wait" stance. The committee also mentioned the protectionist tendencies that are being observed in certain countries, Mr. Setterdahl said.
"With improved political stability, people will think more optimistically, and when they think like this they will buy more steel," the Nucor official stated, while he underlined that the situations 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 China mostly produces steel via blast furnaces, which account for around 90 percent of overall production, with the remaining 10 percent produced by electric arc furnaces, while noting that this situation is not expected to change dramatically in the foreseeable future. Consequently, Nucor executive said that the impact of electricity shortages will remain limited. 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.