Chinese set for record long steel exports

China’s ‘aggressive’ export policy is said to be aggravating already weak demand in the global long steel products market, according to producers.

The concern comes in the latest short-term outlook from Irepas, the global association of producers and exporters of long steel products. It notes that China accelerated its exports at the beginning of 2024.

‘Based on the data for the first two months of 2024, China is poised to exceed its record exports seen in 2015,’ the outlook says. ‘Chinese steel producers seem to be making profits in each sale, with the lower iron ore and coke prices and lower energy costs in China.

However, their long product exports are still far behind their flat rolled exports.’ ‘Wobbly’ US market The European market remains very quiet with Germany in particular one of the cheapest places for rebar and wire rods.

‘Demand in Europe has disappeared again after a slight improvement at the end of 2023 and it seems it will not get better before the second half. Cut and bend prices are at levels which do not even match replacement costs. It will probably take months before spreads return to normal.’

The Irepas outlook says the US market is ‘wobbling’ with erratic prices. Customers in the US, the EU and Canada are waiting for interest rates to ease and are delaying projects in the meantime. In conclusion, it describes market conditions as ‘fluctuating unstably and difficult’.

‘The outlook for the market for the next quarter is complicated and challenging with huge uncertainty for July, August and September.’