SMM, Sept. 20: Stemcor, one of the world's largest steel traders, is getting an extra boost from the global trade war, but warned that the situation could worsen soon. With demand growing in most major economies, especially restrictions on steel exports from China, the steel industry is enjoying some of the best conditions in years.

According to Steve Graff, CEO of Stemcor, "although the steel tariff policy in the United States is good for our current business operations. But if it lasts too long, it could turn negative, as well as for the global steel industry. Stemcor became a smaller company after it was on the verge of bankruptcy in 2013. The company is now focusing on links between steelmakers and end-users, abandoning physical assets and more speculative transactions. Last year, the change in strategy helped the company make its first profit since it almost went bankrupt. Stemcor on Thursday reported a 14 per cent increase in profits to $20.6 million and a 7 per cent increase in sales to $977 million in the first half of 2018. This is a considerable shift for Stemcor.

The company is currently majority-owned by (Apollo Global Management LLC), a private equity firm Apollo Global Management Co., Ltd. After the economic downturn, the steel industry is slowly recovering just as the commodity crisis hit in 2015. As demand slows, China exports large quantities of cheap goods to the market, driving down prices for global producers and sparking political disputes from Europe to the US. Since then, China has slowed exports and reduced pollution under international pressure, while global demand has improved. While the brief recovery in the steel market is good news for companies such as Stemcor, Graff stressed that the risks hidden by tariffs remain.

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