Geopolitical tensions continue to increase costs
IREPAS noted that the ongoing conflicts in Ukraine and the Middle East continue to create uncertainty and disrupt trade flows. Higher oil and natural gas prices have increased transportation and production costs, and marine insurance rates have also increased due to geopolitical risks. The report notes that as expectations of a short-term outage have disappeared, many distributors and warehouses are holding stocks for fear of future shipments and replacement costs.
The EU market is preparing for a new quota system
In the EU and the UK, the market is looking for a new balance ahead of changes in the import regime starting on July 1. IREPAS reported that some import purchases occurred at the last minute when buyers were trying to position themselves. before the new quota system comes into force. In the future, buyers will have to base their strategies on the actual availability of the market, rather than on the cheapest theoretical import offers.
Scrap prices are high despite weak demand in Turkey
IREPAS said that prices for deep-sea scrap CFR remains well above US$400 per ton for Turkey, which supports prices for finished products, despite weak rebar sales in Turkey. However, Turkish factories do not expect much demand for long products from the EU due to the upcoming quotas. In addition, IREPAS noted that production costs in Turkey could increase as rising summer temperatures cut off the benefits of cheap energy generated by winter rains.
The US market is supported by trade protectionism and investments in artificial intelligence
In the United States, inflation and the postponement of interest rate cuts until 2027 continue to put pressure on housing and construction activity. However, reduced import competition, supported by 50% Section 232 tariffs and high freight costs,
