The supply and demand balance in the global long steel products market is being impacted strongly by low demand, according to the latest report issued by IREPAS, the global association for longs exporters and producers. Despite the overall gloomy scenario of mostly insufficient demand, stimulus measures in China and potential steps by the incoming Trump administration to end conflicts could boost the steel markets, the IREPAS report says. Regarding the international markets, aggressive competition is observed in open markets and fair demand in domestic markets.
While the global long steel products market is looking for solutions to its current desperate situation, exports from many countries, especially China, are not helping. China has introduced stimulus packages and measures to resolve the problems of its weak real estate and construction sectors and excess steel production capacity. IREPAS notes that it is yet to be seen whether a change will occur in 2025 as regards the high levels of Chinese exports.
With the new Trump administration, new tariffs may be introduced and if equally distributed they may create opportunities for the countries already struggling under the Section 232 duties. China is considered to be the biggest loser in terms of future export opportunities to the US, which may make the country more aggressive in its export strategies without worrying about the global reactions. IREPAS expects higher steel prices in the US as a result of the anticipated new duties. The easing of interest rates will also stimulate the domestic construction industry.
According to the report, the EU is suffering from low demand and is overwhelmed by imports. Europe, and in particular Germany, is in a recession. Finally, all the rules and regulations imposed by the EU and the German government over recent years, combined with great geopolitical uncertainty and stagnating international economies, have hit Europe with full strength.
According to IREPAS, the global long steel market can be described as unstable and fluctuating as there is a lack of demand. Unfortunately, the outlook for the market is not so bright, as it still points out to a continuing lack of demand and further fluctuations.