OUTLOOK: Focus in Q2 to be on ‘volume survival’ amid effects of Covid-19, Irepas says

The second quarter of 2020 will be one of volume survival due to massive capacity cuts in scrap, billet and long steel products globally amid Easter and Ramadan holiday periods and during efforts to contain the coronavirus, the International Rebar Producers & Exporters Association (Irepas) said on Friday April 3.

Steel output reduced globally 
The Italian government in March ordered the closure of all non-essential production operations in the country, including steelmaking, as part of measures to battle the Covid-19 virus pandemic. Originally the measures were set to last until April 3 but as the lockdown was extended to April 13 and assets will remain shuttered accordingly. 
Algerian steelmakers also significantly reduced or stopped operations at the end of March because of the health emergency. As for re-rollers, market participants said their operations had also been suspended because traders who supply billet for re-rolling had stopped import operations. 
Several steel mills in the Izmir region of Turkey were heard to be closing down or reducing production, while one steel producer in the Iskenderun region was also reportedly halting production to carry out maintenance, Fastmarkets reported.

“The stoppages of active steel production capacities are not really being coordinated....

Published

Vlada Novokreshchenova

April 07, 2020

14:04 GMT

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