Service Centers

ASD Cleveland Meeting Features Cliffs Natural Resources CEO

September 18, 2016

SMU attended the regional meeting of the Associated Steel Distributors (ASD) on Sept. 15 in Cleveland, Ohio. The meeting was well attended for a presentation by Cliffs Natural Resources CEO Lourenco Goncalves. Mr. Goncalves spoke about the environment, trade and how conditions in the iron ore industry impact global steel supply, or, in recent years, oversupply. Recent trade case successes are helping to correct illegal foreign trade policies. The U.S. needs steel exports, said Goncalves, but they need them at fair and unsubsidized prices.

China is moving toward correcting its excess supply problems and cleaning up the pollution that its redundant and inefficient mills have created. Eventually China will be a major player in the scrap industry as more EAFs are built and the country moves away from sinter feedstock. But, until it generates enough of its own scrap steel, look for China to become a major purchaser of scrap.

Mr. Goncalves recently spoke on this topic at the Steel Market Update Steel Summit in Atlanta, GA in August. An item that he added to his ASD presentation was his belief in the strength and importance of service centers and distributors for the U.S. steel industry. He urged that service centers toe the line on pricing and not capitulate to lowering prices just to make a sale. Only through pricing discipline and offering value can the steel industry stay healthy and continue to grow.

ASD president Andrew Gross, in his closing remarks, talked about the value that ASD offers through its regional and national meetings and speakers that provide insight into topics that are important to the membership. The Association also features a Future Leaders Forum, a series of networking opportunities and seminars designed to provide leadership and management information.

As a frequent attendee at the regional meetings, it is clear that the ASD is doing just that, providing important value through education, community service, networking and discussion of relevant and timely issues. The next ASD event is the Fall Conference to be held in Las Vegas Nov. 17 – 19, 2016. For more information about ASD, go to www.steeldistributors.org.