IIMA Secretary General John Atherton took part today in the Kallanish Global Flat Steel 2026 conference in Istanbul, 23rd September. He joined a panel session to discuss Input costs and supply security, looking at the key issues and the steps being taken to mitigate them.
IIMA members Cargill, Colakoglu and Tata Steel also spoke at the event.
Background of session: The Middle East conflict has resulted in an energy shock 2.0 and shipping disruption, reigniting concerns over security of supply of two key elements in steelmaking – energy and raw materials. Electric furnace-based steelmakers in gas import dependent-regions, such as India and Europe, have been hardest hit. Middle Eastern steelmakers have struggled to secure iron ore pellet feedstock due to the Strait of Hormuz closure. Besides this, concerns remain over how to secure the high-grade iron ore and scrap feedstock needed for the low-emission steelmaking transition amid depleting reserves and resource nationalism. New sources of slab production are meanwhile emerging in Asia, which will help diversify feedstock supply for mills in the region and further west. Following the banning of Russian pig iron, Russian-origin slab imports are being phased out in the EU, leaving a large feedstock supply gap that will need to be addressed.
Issues addressed:
- The impact of soaring fuel prices on global steelmakers’ competitiveness
- What steps mills are taking to mitigate the energy cost impact and ensure supply security
- New partnerships to secure raw materials supply for the energy transition
- The importance of using high-quality scrap in EAFs and how to secure supply
- New sources of iron ore supply impact on global markets
- The extent to which mills are factoring sustainability into sourcing of inputs
Key takeaways from the session:
– Energy availability, cost and future sources is the top challenge for the iron and steel industry.
– Protectionist measures restricting movement of scrap will create a fresh dynamic for the OBM merchant market as more mills look to OBMs to supplement their feedstock.
– Sustainability factors have little influence on prices but are increasingly necessary to future proof markets.
The session was moderated by Burcak Alpman of Kallanish, pictured with John.
