What a wild ride we’ve been on. What’s important to note is that we’re in this together. We’re all facing the same challenges, whether you’re in Asia, the USA or Europe. Section 232 has helped support a slowdown of global growth.
With the recent market correction, there has been an abundance of purchases. Many feel we are at the bottom or close to it. Unfortunately, the damage has been done. We’ve also encountered higher freight rates from IMO 2020 and as we near the end of the year; the feeling is that most of the costs have already been priced into today’s freight. Sadly though, new outliers could further affect rates. With recent attacks on Saudi Arabia’s oil supply, we have seen our gas prices go up immediately and considerably.
Now is the time to stay focused. We have a sustainable business and one that remains ever important in fighting global pollution. Scrap usage should be the focus for pollution reduction going forward as steel production reaches all-time highs in China.
Things we should continue monitoring include: idled furnaces for maintenance; lower guidance from steel producers; political issues between the USA, Saudi Arabia and Iran; IMO 2020; and Section 232. These are just some of the issues that will affect our industry.
Greg Schnitzer
President of the BIR Ferrous Division
Country
