The global long steel products market remains under severe pressure, with demand weak, prices squeezed, and mills struggling to operate profitably, according to the latest short-range outlook from the International Rebar Producers and Exporters Association (Irepas).
Irepas noted that mills are cutting production as protectionist measures intensify, while heavy exports from China and other Asian countries continue to depress prices. Imports displaced by U.S. tariffs are also seeking new markets, fueling worldwide disruptions.
Some improvement may emerge in the coming months, with China’s recent modest domestic price gains and anticipated interest rate cuts offering potential support. However, mills remain squeezed by low capacity utilization and sideways scrap prices, raising concerns about long-term viability.
In Europe, weak demand persists, though production cuts over the summer could help restore some balance in Q4. German domestic prices, which slumped sharply from June to August, are now being pushed upward by mills attempting to recover lost ground. Market activity remains subdued, but September is expected to show some improvement.
In the U.S., demand is also soft, with prices trending down despite 50pct import duties. Capacity utilization remains below 80pct even after months of tariff protection, and with new capacity coming online, this may fall further. Ongoing legal challenges to several Trump-era tariff rulings add another layer of uncertainty.
Overall, Irepas described the market as unstable, with fundamentals weak and policies unpredictable. The association expects the outlook for the next quarter to remain unsatisfactory, marked by fragile demand, competitive pressures, and policy-related uncertainty.
