Prospects for the global long steel market will remain unimportant for a long time – IREPAS

The balance between supply and supply on the light market for long-term rentals is unstable, according to the latest short-term forecast of the International Association of Producers and Exporters of Long-Term Rentals (IREPAS).

China continues to occupy a leading position in the global market, with lower billet prices dominating both the long and flat rolled segments. Nowadays, the country, it seems, has no intention of speeding up neither exports nor production, and at such a pace, in 1-2 years the world’s steel industry can collapse.

The weak Asian market, especially in China, will continue to undermine steel markets. Due to the low demand for labor and the high reserves of ore in Chinese ports, metallurgists who produce steel using the converter method have received lower prices for imported ore and coke. This is due to the fact that rental prices are lower.

On the other hand, brucht becomes more expensive through the interconnection of propositions. As a result, metallurgists who work with electric arc furnaces spend a lot of money and try to compete with converter production. If China does not introduce approaches that could change this scenario, the future market will be rendered insignificant.

The long-term rental from Europe is losing much of what is insignificant, and there are no signs of its improvement.

The long-term rental market in the United States will remain calm through the summer holidays and Independence Day, while infrastructure projects continue to be implemented at a normal pace. The stress of commerce and everyday life was satisfied through high interest rates. Prices for long-term rentals are under pressure, pressure, through internal competition, and not imports. At the same time, the profitability of American factories is still at a low level.

As GMK Center reported earlier, the import of long-term rolled products into Ukraine increased by 13.2% compared to the same period in 2023 – up to 56.5 thousand. t. Import supplies to the penny store increased by 6.1% y/y – up to $60.4 million.