The global long steel products market is described as ‘very poor and unstable’, with a ‘very unsatisfactory outlook’ in the latest short-term outlook from Irepas.
The international association for producers and exporters of rebar says this is caused by
weak demand, market protection and excess capacity. Meanwhile, it points out, Chinese exports continue to undermine confidence in the rest of the world’s markets. Chinese data for November 2024 showed China closing on a record year for steel exports.
No resurgence
‘The economic news coming from China is less than encouraging and there is no anticipation of any resurgence in its domestic demand for long steel products in 2025,’ the outlook comments. ‘In fact, it is puzzling how Chinese steel users still manage to consume 900 million tonnes of steel annually.’
Uncertainties over US trade policy continue as the new Trump administration took office. Proposed tariffs, including a 25% duty on imports from Canada and Mexico, could disrupt supply chains, raise costs and increase global economic strains, says Irepas. It fears that rising borrowing costs could further burden industries like construction, which are already struggling with low demand and inflationary pressures.
Deportation fear
It also warns that Trump threats of mass deportations of undocumented workers could create labour shortages, particularly in construction, driving up costs and slowing growth.
The outlook concludes: ‘Competition in the market is very strong, while the market can be described as very poor and unstable, with a very unsatisfactory outlook.’
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