The global long steel products market is under increasing pressure due to weak demand, market protection, and excess capacity, with no positive news from China, according to the International Rebar Producers and Exporters Association (Irepas).
China’s economic outlook remains discouraging, with no signs of a rebound in domestic demand for long steel products in 2025. Despite this, Chinese steel users continue to consume about 900 mln tons of steel annually, a surprising figure, according to Irepas.
The global economy faces significant challenges, especially with uncertainties surrounding U.S. trade policy as the new administration prepares to take office. Proposed tariffs, including a 25pct duty on imports from Canada and Mexico, could disrupt supply chains, raise costs, and strain the global economy. Rising borrowing costs could further burden industries like construction, already struggling with low demand and inflation. While some countries already facing Section 232 tariffs may benefit from a level playing field in the U.S., these proposed tariffs could increase domestic construction costs, slowing economic growth and steel demand, Irepas noted.
In the U.S., potential mass deportations under Trump’s administration could lead to labor shortages in construction, driving up costs and slowing growth. Domestic mills, such as Commercial Metals, are reporting losses due to heightened competition from increased domestic production capacities. While rebuilding after the Los Angeles fires might eventually boost activity, this remains a long-term prospect, Irepas added.
Europe continues to face negative growth, with the European Union expected to revise its protective measures on April 1. Turkey and India have also introduced market protection measures.
Competition remains fierce in a poor and unstable market with a bleak outlook, Irepas concluded.
