Speaking on October 6 at the SteelOrbis 2015 Fall Conference & 73rd IREPAS Meeting in Paris, F.D. Baysal from Seba International, the chairman of the traders committee, said that some traders believe that there exists room for a small further price reduction, while the general consensus is that prices are at the bottom or pretty close to it.
Regarding the current situation in the US, the traders committee chairman stated that the committee members discussed whether mills are ready to produce new grades according to new ASTM standards. Mr. Baysal said that they also talked about the CARES’ (Certification Authority for Reinforcing Steels) suggestion that trading companies should be CARES-approved as well and whether this was another way of imposing a trade barrier. He pointed out that the traders did not subscribe to the suggestion. Commenting on another trade barrier, antidumping cases, Baysal said that not only the cases themselves but also the annual reviews create risks as well.
In answer to a question about whether the major iron ore producers’ increasing supply volumes constitute market vandalism, Mr. Baysal said he did not think it was market vandalism, but rather a strategy. “My belief is that when the smaller guys are out, the major producers can control the prices better. If the market turns against them, it might hurt them but I think it is a smart strategy. Once the smaller ones are out, it will be really hard for them to come back,” he concluded.