IREPAS Warns of Weak Demand in Global Long Steel Market
Steel News | 2026-02-10 07:09:01
In the United States, commercial and residential construction indicators are softening, although domestic mills remain positioned well due to strong trade protection and limited import competition.
By Paul Ploumis
SEATTLE (Scrap Monster): The global long steel products market remains under pressure, according to the IREPAS short-range outlook, as weak demand and high supply weigh on prices.
Buyers are acting cautiously, purchasing strictly on a hand-to-mouth basis and delaying medium- and long-term commitments amid structural and seasonal softness. While China recorded a production decline in 2025, with output falling to 960 million metric tons for the first time since 2019, exports surged to a record 119 million metric tons, adding supply pressure globally.
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Rising geopolitical tensions are pulling foreign exchange and commodity markets in different directions, increasing uncertainty for mills and traders. This uncertainty is reinforcing buyers’ wait-and-see approach, while input costs, particularly ferrous scrap, remain firm compared with finished steel prices. In the European Union, demand is weak, as political uncertainty, CBAM implementation, and quota concerns have slowed imports.
In the United States, commercial and residential construction indicators are softening, although domestic mills remain positioned well due to strong trade protection and limited import competition. Seasonal scrap supply tightness is providing support to long steel prices. Market conditions remain unstable, but seasonal factors offer optimism for 2026.
POLL
Will seasonal factors meaningfully improve global long steel market conditions in 2026?
Frequently Asked Questions
- What is the current outlook for the global long steel market?
According to IREPAS, the market remains under pressure due to weak demand, cautious buying behavior, and elevated supply levels.
- How is China influencing global long steel supply?
Despite a notable production decline in 2025, China’s steel exports hit a record 119 million metric tons, increasing global supply pressure.
- What factors are affecting demand in the EU and the US?
In the EU, CBAM uncertainty and quota concerns have slowed imports, while in the US, weakening commercial and residential construction is impacting demand.
