IREPAS: Is globalization of the world’s long steel products market now at an end?

Friday, 11 January 2019 17:10:36 (GMT+3)   |   Istanbul
       

The global long steel products market is heading towards a more complicated and difficult period as the globalization of the steel business is being rewound amid a clash between liberal and protectionist trade policies that are somehow tied to political ups and downs between world leaders, according to the short-range outlook report issued by IREPAS, the global association of producers and exporters of long steel products. It seems that global business will be relatively quiet as long as protective measures are in place.

China still not expected to repeat the mistakes of 2014 and 2015

Although the 10 percent increase in Chinese crude steel production in the January-October period of 2018 as per worldsteel data creates some worries, China is still not expected to repeat the same mistakes as it did back in 2014 and 2015.

Turkey to be hit hard by EU import quotas

Regarding the product and country specific import quotas proposed by the European Commission, especially rebar and wire rod quotas given to Turkey, IREPAS predicts that the quotas in question will most probably be filled within the first two months, and so EU producers will have a relatively good year. However, buyers in some European countries which are not self-sufficient will end up paying higher prices as a result of such safeguard measures. The IREPAS report also pointed out that the coming months will be very challenging for Turkish exporters, as there are not many markets left to which they can sell.

Next quarter outlook very good for EU and US, but quite unstable for international business

According to the IREPAS report, outlook for the next quarter is very good for the EU and the US, but is quite unstable for international business. While Turkey is in a tough situation amid trade measures by the US and the EU, new capacities are coming into Vietnam and Malaysia, which may create some weakness in Asia. IREPAS warned that, if politicians actively interfere in trade and industry, it will make the outlook worse.


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