During his welcome speech at the SteelOrbis 2020 Fall Conference & 83rd IREPAS Meeting held virtually on September 21 with approximately 450 participants, Murat Cebecioğlu, chairman of IREPAS, stated that the coronavirus pandemic has worsened the situation in the market. Stating that halts in construction activities and delays in investments have reduced the demand for all steel products, he added that supply and demand decreased all over the world except in China, where output keeps growing. Underlining that the demand in the global long product market is not as bad as thought, the IREPAS chairman stated that the last quarter has been very strong in China and that the current outlook is supported by China’s being a net importer, with the country being the driving force in the recovery period.
Mr. Cebecioğlu said that the investment activities and stimulus measures in China are positive signs for the long product market, adding that domestic demand in China is strong, while the country is not interested in exports. The IREPAS chairman stated that the market is almost entirely shaped by news and signals from China. Pointing out that there is a smaller global market outside of China, he stated that buyers and producers are operating regionally due to the pandemic and protective measures, while the global market is currently in a recovery period after a weak quarter with the decline in production capacities caused by the pandemic. Regional demand is improving and purchases are resuming due to replenishment needs.
While indicating that most mills outside of China are still going through a difficult period due to declines in production rates and in financial results, Cebecioğlu said that, considering the results recorded in the first half of the year, the situation is still positive. He stated that there is great uncertainty about what the winter will bring due to the possibility of a second wave of the pandemic and that the global market outlook is becoming more uncertain due to ongoing political uncertainties and new threats from all over the world.
Despite all these factors, the IREPAS chairman said that the regional markets are performing well and prices are getting stronger. On the other hand, he noted that the situation is not good in terms of free and fair trade. Stressing that the protectionist measures implemented unilaterally by the US by violating WTO rules continue to impact global trade negatively, Cebecioğlu stated that IREPAS supports free and fair trade in steel as always and invites everyone to respect it.