The global market for long steel products has shown no signs of improvement, and the business environment has deteriorated due to a deteriorating supply-demand balance. According to the latest report published by IREPAS, a global association of long-life exporters and manufacturers, the wars in Iran and Ukraine have significantly worsened global supply chain disruptions, while the current rise in prices is driven by a supply shock characterized by higher energy, power and freight costs rather than a recovery in demand.
Ceasefire critical to avoiding recession
IREPAS said more part of the future market depends on whether the recently declared ceasefire in the war with Iran holds, adding that if the ceasefire fails and energy prices remain elevated, many countries could enter recession. While higher costs have so far been seen as unavoidable, the association pointed out that growing protectionism and uncertainty about future demand are further complicating international trade.
Divergent scrap and regional dynamics
On the raw material side, it noted that ferrous scrap export volumes to the US are declining due to higher domestic consumption, while the UK is shifting to containerized scrap exports to Turkey. At the regional level, IREPAS has identified three clear dynamics: competition in the US remains largely domestic, the EU market has a combination of domestic competition and limited imports, while
