IREPAS Announced Bleak Outlook for Long Steel Products

SEATTLE (Scrap Monster): The International Rebar Exporters and Producers Association (IREPAS), in its Short Range Outlook (SRO), said that the outlook for long steel products looks bleaker and unpredictable for the next quarter. The months of October and November will be extremely difficult for the global long steel products market. Also, December and January could be worse.

According to the report, the situation in the global long steel products market is deteriorating. The lack of demand in the market is resulting in inventories lasting longer than expected. The European steel mills and consumers have been badly hit by rising energy costs. The bigger than ever logistics crisis in the EU region too has been impacting the market.

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The geopolitical tensions have led to hike in prices. However, IREPAS expects production cuts in the near future, which in turn will balance the drop in demand. Consequently, the EU mills may resort to price increase, it noted. The escalating energy prices will continue to remain as a major issue in the EU region.

The association describes the market as unstable and fluctuating. The ongoing crisis is a once-in-a-generation event. The raw material prices have stabilized, even if only for a short time. The EU mills are likely to import more slabs and billets from countries that are not affected by European energy crisis.