IREPAS pegs global rebar consumption growth at 5.3% this year

SEATTLE (Scrap Monster): The International Rebar Producers Association (IREPAS) predicts robust growth for global consumption of long steel products, especially rebars. According to Kim Marti, developing economies will continue to drive global rebar consumption. Meantime, China accounts for more than half of the total worldwide rebar consumption.

The global long steel product consumption is expected to reach 840 million tonnes in 2014. The annual rebar consumption growth is expected to reach 5.3% in 2014. The rise in consumption will be mainly led by significant growth in North American region, where consumption is foreseen to grow by 7.8%. The EU region rebar consumption growth is anticipated to grow at 5.9% for the full year 2014.

According to Marti, Asian markets account for over 70% of the global rebar consumption. Among long products, rebar has the highest market share at 43%, followed by wire rods with 27%, merchant bar with 24% and sections for 6%.

IREPAS also notes that the long term fundamentals of long steel products remain solid, but geopolitical tensions in Ukraine and MENA region are feared to pose threat to the market in near term. The iron-ore based producers have benefited immensely out of the plunging iron ore prices, whereas the profit margin for EAF producers continues to remain contracted.