Final Thoughts

It’s incredibly timely with Worthington Steel announcing just last Friday that it will acquire Düsseldorf, Germany-based Kloeckner & Co. (Recall that Kloeckner Metals is Kloeckner & Co.’s North American subsidiary.)

The deal is valued at $2.4 billion. And assuming it’s approved, it will create the second-largest service center chain in North America behind only Reliance Inc.

I’ll be interested to hear how the merger might reshape the service center landscape, not only in North America but perhaps in Europe as well. For what it’s worth, Worthington last year acquired a controlling stake in Sitem SpA, an electric motor lamination producer based in Italy with locations across Europe. It’s fair to say this: Worthington Steel has been very, very busy since its spin-off from Worthington Enterprises in December 2023.

More broadly speaking, I’m sure service center consolidation will be a central theme at the conference – whether that’s on the stage or in conversations along the sidelines.

I’m also pleased to announce that Barry Zekelman, executive chairman and CEO of Zekelman Industries, will be joining me for a fireside chat. Barry is stepping in for Conrad Winkler, president of North Star BlueScope Steel, who will be unable to speak at the event this year because of sensitivities around a potential takeover.

Let’s just say that we’ve got a great pinch hitter. Barry is always one of our most popular speakers. He is well-connected in DC and in Ottawa. And his position as head of the largest independent steel pipe and tube manufacturer gives him unique insights into the steel market as well as an array of downstream industries.

I’ll be curious to learn whether “Fortress North America” is still in the cards amid a rapidly shifting geopolitical picture. A lot has changed since Barry and I spoke about the subject at SMU Steel Summit in August. (The only real Steel Summit, I might add.)

A TV derailed tariff talks with Canada last fall. Now – and this is just in the last week – we’ve seen Canadian Prime Minister Mark Carney warming up to China. Why? Concerns about US expansionism are mounting with President Trump threatening to either buy Greenland or take it by force. What happens if the EU doesn’t accede to his demands? You guessed it. More tariffs.

A paragraph like that would have been crazy talk last year. And that’s just headlines in the last week. I hesitate to predict what the hot-button issues will be a month from now.

Whether you agree or disagree with Barry, I think everyone appreciates his straight talk and passion for the industry. Speaking of straight shooters, we’ll have no shortage of them at Tampa Steel – and, no doubt, a wide range of opinions.

Case in point: David Stickler, CEO of Hybar, will talk about his company’s new rebar mill in Osceola, Ark., the same town where he also built Big River Steel. Like Barry, David isn’t afraid to say what’s on his mind. He’ll talk about Hybar’s expansion plans and the outlook for the rebar market. I’m also looking forward to hearing his opinion on tariffs, “green” steel, and maybe the sheet market too. They might not be what you’d expect from a mill CEO.

As for trade, we’ll get the latest on trade policy and tariffs from veteran trade attorneys Lewis Leibowitz and Alan Price. Lewis views trade policy through the lenses of a proponent for steel producers and Price through those of domestic mills. And they’ll have a lot to talk about with a big decision expected from the Supreme Court soon on Trump’s ability to impose tariffs under the International Emergency Powers Act (IEEPA). What happens if the Supreme Court strikes down Trump’s IEEPA powers? What alternate measures might Trump impose? And could mounting tensions between the US and traditional allies in Canada and Europe impact steel?

When it comes to the broader economy and industrial supply chains, you won’t want to miss the keynote from Tom Derry, CEO of the Institute for Supply Management (ISM). Trump’s tariffs didn’t cause as much inflation last year as many experts feared. Will that remain the case? Or is 2026 the year when those costs finally get pushed along to consumers? Also, there has been immense enthusiasm in steel for the demand potential of data centers. How much of that is real, and how much is hype?

Honestly, there is more I’d like to say about Tampa Steel than I can reasonably fit into one column. Again, the full agenda is here. I encourage you to check it out.

If you’ve registered for the event, don’t forget to download the conference app. That will allow you to ask questions to a group of speakers with unparalleled expertise across the steel supply chain. It will also allow you to take full advantage of networking opportunities at the event – whether that’s over drinks, a coffee break, golf, or a harbor tour of Port Tampa Bay.

I’ve been with SMU for five years now. And it seems that some themes are consistent at Tampa. Everyone has their forecasts for the New Year. By the time we gather, we have a better idea of how things are stacking up against those forecasts – what has gone as expected, what’s surprised the market, and key issues to watch for the balance of the year.

And not for the first time, the conference might be occurring against the backdrop of important world events. In 2022, we met for the first time since the Covid shutdowns just before Russia’s full-scale invasion of Ukraine. Last year, we met just after Trump’s inauguration and amid waves of new tariffs – some rolled out while we were up on stage. It at times felt like we were taping a live cable news show.

Could we again be reacting live on stage in Tampa to consequential events unfolding at the same time on the world stage? I wouldn’t rule it out. And I can’t think of a better, more informed group of people to share that experience with.

Whatever happens, there will be stickers!

By the way, I mentioned last week that we would have new stickers for Tampa. Below is what we’ve settled on. Make sure to drop by the SMU booth to say hello to me and my SMU, CRU, and AMU colleagues – and to make sure you get yours.