News Global Market graded rolled steel 12 April 2023
European producers fight for orders, China did not show the expected recovery
The global graded rolled products market is facing challenges due to declining international trade and lack of balance between supply and demand, the International Rebar Producers and Exporters Association (IREPAS) said. SteelOrbis informs about it.
The downward trend in steel production in 2022 seems to have spread to the current year, but producers are able to meet actual consumption. This has led to a certain dislike of imports and a reduction in international trade. The world market, according to IREPAS, is becoming more and more regional.
European plants are fighting for every order, but the market is restrained, it is dominated by negative factors. The Chinese market after the New Year holidays did not show the expected recovery.
In the US, steel demand remains strong, but the outlook for the local market is mixed. The banking crisis is affecting investment prospects as well as interest rates, which continue to grow, do not improve the situation, leaving importers at a disadvantage.
In the MENA region, regional and international trade is usually affected by the Ramadan period. Closer to summer, it may become more active, but weather conditions will soon play a role.
The current state of the global market remains unstable. IREPAS gives an unsatisfactory forecast for May-June 2023, despite some positive factors, such as falling energy prices. However, the situation may change.
As GMK Center reporred earlier, in early March, IREPAS noted that demand for graded products grew in most markets. This was mainly due to seasonal reasons. The supply on the global market began to adjust, which changed its dynamics. The EU market remains weaker and lags behind general trends. In Europe, there were far fewer requests from the construction sector than expected.
Also, in early March, global rebar prices were adjusted after the earthquake in Turkiye – in most markets, except for Europe, they grew. Quotations were supported by demand, which was held back during 2022 by negative expectations regarding a recession in the global economy.