Steel Industry Short Range Outlook -July 2019 by IREPAS

SEATTLE (Scrap Monster): The International Rebar Producers and Exporters Association (IREPAS) announced publication of Short Range Outlook (SRO) for Steel Industries for July 2019.

According to IREPAS, uncertainty still prevails in global longs market. The market seems to be generally unstable with BOF production facing severe pressure on account of increasing raw material costs. Several BOFS have already closed. Also, threats of potential BOF closures still exist. The industry is likely to witness slow down in activities and shutdown of inefficient facilities.

The domestic supply of long steel products has witnessed notable improvement in the U.S. However, the demand continues to remain without any major change. Although domestic mills face very little pressure from imports, they are engaged in tough competition with respect to their offer prices even to small buyers.

The South American market reported marginal growth in reinforcing bar consumption during the first five months of the year. But lack of infrastructure development has resulted in reduced pickup in general demand. The rebar price levels at still at lower levels, though iron ore prices have hit $117 per mt CFR.

The demand in Western markets is expected to stay low for short term. However, the markets are likely to firm up during the last quarter of the year.

The global long steel products market is expected to remain slower than usual during the summer, IREPAS noted.