Long products market will be oversaturated in the short term - IREPAS

The International Association of Manufacturers and Exporters of Rebar has published a report suggesting an oversupply in the global long products market, which will emerge in the near future. Companies that are engaged in construction of buildings from metal structures or use long products in their core business will benefit from this.

According to the Association, fears of oversupply arise mainly due to declining consumption and an increase in steel production in China. Competitive Chinese prices continue to keep global valve manufacturers' margins under pressure. In addition, as a result of geopolitical tensions, trade in billets and rebar in the Black Sea region, Libya and Iraq has already been severely affected.

The tension between Ukraine and Russia poses a problem for any positive developments in the long-term product market in the long term. The situation in Iraq will also play a prominent role, as noted by IREPAS.

Unequal conditions for scrap and iron ore smelters and increased exports from Chinese steel mills will continue to imbalance the market. China's steel product export volumes and prices are likely to affect the global pricing of all steel products.

IREPAS also notes that demand for long products has resumed in North America. The demand in the Nordic countries also remains reasonable. However, some South American markets are showing a slowdown in activity. In addition, the decline in production has already narrowed the gap between supply and demand for semi-finished products on the market.