OUTLOOK: Favorable long steel market conditions drive positive expectations for second quarter, Irepas says

The combination of a material shortage, strong demand and long lead times in the global long steel market, in addition to progress with Covid-19 vaccination programs, have made the outlook for the second quarter of this year very positive, according to the International Rebar Producers and Exporters Association (Irepas).

“It was somewhat surprising to see that the steel output outside China had not increased during the first two months of the year compared to the same period last year, despite the increases reported in India, South Korea, Turkey and Brazil. Output in the [United States], Japan, Russia, Germany, Taiwan and France were all lower year on year. That means there is still a shortage of material, which keeps prices and margins high,” Irepas said on Wednesday April 7.
Global crude steel output increased by 6.6% year on year to 315 million tonnes in January-February 2021, according to the World Steel Association (Worldsteel). China produced 175 million tonnes of this, up by 13% year on year; and the rest of the world produced 140 million tonnes, down by 0.4% year on year.

“Tight availability from most exporting countries and companies is affecting the level of competition in most...

Published

Vlada Novokreshchenova

April 08, 2021

15:34 GMT

Dnipro