Traders Help Industry Navigate Through Turbulent Times

It’s a “crazy, risky business,” said Murat Askin, founder, and CEO of StaalX, with geopolitical, economic, and legislative woes to constantly deal with. In 2021, steel became very scarce and there were a lot of shortages, so traders had to be creative in rushing imports in and traversing through the landmines.

Responsible traders help to provide some order into the market, acting ethically and responsibly so as not to disturb a market, noted Jose Gasca, managing director of Metrading International. Additionally, traders must always act with an environmentally- and socially-responsible mindset, he said.

Lewis Leibowitz, trade attorney and regular contributor to the SMU newsletter, provided an important SWOT analysis showing the main areas of strength, weakness, opportunities, and threats for traders. “Traders are a vital cog in the economic machine of the world,” he noted.

With the Section 232 tariffs mostly still in place in the US, and some countries having already switched to a tariff rate quota (TRQ) system, most of the panelists agreed they will remain in place for some time. Leibowitz said it is unlikely they will be abolished within 3-5 years, but he does see them being changed to adapt to current political realities. Gasca lamented issues his company has faced with TRQs and is of the opinion that they must be changed.

The panel agreed that port congestion, logistical issues, and warehousing shortages have been major issues for their business, but most foresee the problems easing through the remainder of the year and into 2023. As Gasca pointed out, “logistics are limiting the ability for someone to bring a product in on a competitive basis.”

By Laura Miller, Laura@SteelMarketUpdate.com