2025 has begun with a lack of positive news, with the widespread weakness of demand, protectionist measures and overcapacity putting the global longs market under increasing pressure, according to the latest monthly report issued by IREPAS, the global association for longs exporters and producers.
Steel exports from China reached record figures in 2024, and the country is still struggling with economic uncertainties, so it appears that domestic steel demand in China is unlikely to increase in 2025.
The global economy looks set to face more challenges this year, with Donald Trump threatening to impose 25 percent duty on imports from Canada and Mexico to the US, which could jeopardize industries like construction, which are already struggling with inflation and low demand. Moreover, Trump’s administration could also cause labor shortages with the mass deportation of undocumented workers.
The situation in Europe has not changed much compared to the end of 2024. The region is still experiencing negative growth, and the EU will revise its protective measures on April 1. In the meantime, Turkey and India have also introduced trade measures.
To conclude, IREPAS stated that the global long steel markets are entering a very unpredictable period, characterized by strong competition, poor demand and an unstable, unsatisfactory outlook, although some issues may become clearer after Trump’s inauguration on January 20 and after the Chinese New Year holiday.