BIR World Mirror on Ferrous Metals / Quarterly report - May 2015

PRESIDENT'S OPENING REMARKS
by William Schmiedel, Sims Group Global Trade Corporation

Dear colleagues,   

Much of the first quarter was certainly the rough road we had anticipated. Carbon scrap markets continued deteriorating as the immense wave of Chinese semi and finished steel exports hit foreign shores. As we look forward, we can be slightly optimistic as those exports have dropped by about 27%. We have also seen a reversal of iron ore pricing that may continue for a while as well as a firming ruble. Indeed, we must temper our optimism with the clear fact that overcapacity is still prevalent in the steelmaking industry. The global utilisation rate is still mired in the low 70% range and worldwide GDP growth is still low. All that notwithstanding, we have three quarters remaining for 2015 and many of these dynamics could quickly change.

I look forward to seeing you in Dubai.

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