Steel Business Briefing, Wednesday, 25th February 2009

The strength of the dollar and euro against the pound is just one reason to be cheerful regarding the UK's steel market, says John Brierley, outgoing Chairman of the North East Association of Steel Stockholders (NEASS).

This strength, which is deterring imports and making UK exports more attractive, is creating a "very good basis for manufacturing", he says. As managing director, UK & Ireland at carbon and stainless steel plate stockists Brown McFarlane he says his business is certainly seeing new jobs in the plate sector and process engineering and is starting to see some more in infrastructure.

Unlike automotive and white goods, not all UK sectors are suffering under the economic crisis, he adds. Those relating to energy, like new-build powers stations and renewables are most buoyant.

Addressing the NEASS annual dinner attended by Steel Business Briefing, he added that the UK's stockholding sector remains in the black despite dramatic declines in stock value in the second-half of 2008. "The stock write-up [in H1] is better than the subsequent write-down:" The exception, where last year's stock profits could now equal the recent losses, is strip mill products for cars and white goods.

2009 and 2010 will be poor compared to 2008, but the system's underlying strength will see the stockholding and distribution business though, he concludes.

Brierley will be succeeded as chair of NEAS by Laurence McDougall, director at Tomrods Ltd. Brierley's term as President of the National Steel Stockholders Association (NASS) continues until April 2010.