Trade Body Warns of Deteriorating Long Steel Products Market

SEATTLE (Scrap Monster): The recently concluded 87th meeting of IREPAS (the International Rebar Exporters and Producers Association) in Monaco warned of deteriorating situation in the global long steel products market.

In his opening address, Murat Cebecioglu, Chairman, IREPAS noted that the market is currently facing a rising-cost business cycle. Furthermore, he cautioned of a huge market uncertainty in the near future.

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The steel mills, especially those in the EU region, are seen battling with unprecedented surge in energy prices. The situation is not much different elsewhere in the world. This coupled with worsening logistics and supply chain issues will likely make production cuts at mills inevitable. This in turn may help to balance the huge drop in demand. The IREPAS Chairman termed the current crisis situation as a once-in-a-generation event.

The meeting observed that the scrap demand has witnessed notable slowdown in virtually all markets, except in South Asia. The weak scrap demand in major markets such as the U.S., Turkey, China and EU countries has been offset by Southeast Asian demand, which turn has helped to mitigate the pressure on market prices exerted by Turkey.

The rising inflation rates, escalating energy price and declining steel production may likely impact several countries, IREPAS said.