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Steel's new mettle: analysts say the steel industry is entering a more prosperous era. The large turnout and upbeat mood at the recent Steel Success Strategies conference reflect that optimism.

Article Excerpt
The threatening competitive environment of the past decade has tested the mettle of metal ness a "more friendly environment for steel companies," according to Peter Marcus, managing director of World Steel Dynamics.

WSD was a co-sponsor, along with the publishers of American Metal Market, of the Steel Success Strategies conference June 21-23 in New York City. Nearly 1,000 steel industry executives from all over the world attended the annual gathering to discuss the global supply-demand balance, trends in production and consumption, raw material shortages and international trade, among other subjects.

In their opening presentation, Marcus and his associate Karlis Kirsis said the steel industry is exhibiting characteristics similar to younger growth industries. They also highlighted several "unbelievable" events in the steel industry this year and the driving forces that will shape the industry in the next 10 years.

Among the growth-industry type characteristics of today's steel market is the astonishing pace of new developments. Stiff price competition has produced major price swings and helped to promote change. "Laggers in adopting new technology will be threatened with extinction," Marcus said.

Steel is an increasingly global business. Thirty percent of all steel products manufactured are shipped across an international border. In general, those products have seen major improvements in quality, which has led to the continued dominance in automotive markets and gains in new markets, notably construction, the WSD analysts reported.

Global steel demand has grown every year but one since 1993. In 2000, global steel production was 849 million metric tons. This year it should hit 1.04 billion tons, for a compound average annual increase of 5 percent.

China is "driving the bus" in steel production, Marcus said. In 2000, China produced 129 million tons of steel or 15 percent of the global total. In 2004, China's total could hit 270 million tons or 25 percent.

All over the world, the steel industry's structure has changed rapidly....

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