World rebar consumption is expected to grow by a very impressive 7.1 percent year on year in 2013, supported by continuing growing demand in China and Asia and also in the CIS and Turkey. The year started very well for emerging and developing countries, but towards the summer demand slowed in many countries due to currency outflows, as stated by Alexander Gordienko of Celsa Group at the SteelOrbis 2013 Fall Conference & 68th IREPAS Meeting being held in Istanbul on September 22-24.
In the first half of 2013, long steel demand recovered in North America and the EU emerged from its recession. The CIS and Turkey have become leaders in growth. Asia kept growing though at a slower rate, while growth in Africa, Brazil has slowed down, said Mr. Gordienko, adding that world long steel consumption is showing a stronger pace of growth and is gaining an increased share in total steel consumption. World finished steel consumption, in the meantime, has been maintaining a consistent uptrend since 2009 and is forecast to continue to grow through 2013, according to Mr. Gordienko.
Wire rod markets have improved worldwide with the exception of some African countries, India and some Latin American countries. The slowdown in the automotive industry in the EU has contributed to the continuing decline in consumption of wire rods in the region, Gordienko pointed out.
Long product consumption will grow in 2013 with help from northern Asian markets but also thanks to North America, the CIS and Turkey. Margins for long products continue to be under pressure but recently, for the first time since 2008, there has been a feeling that raw materials are not that strong any longer, Gordienko said. Markets seem to be moving in waves and it is important for the mills to be able to adjust their production levels in line with market conditions, he warned.