Global steel markets are becoming increasingly fragmented as trade barriers, overcapacity and geopolitical risks reshape trade flows, according to participants at the 95th meeting of the International Rebar Exporters and Producers Association (IREPAS) in Belgrade.
IREPAS chairman Ioannis Manessis said geopolitical conflicts, higher energy and raw material costs, restrictive trade measures and weak demand are creating a challenging environment for steel producers and traders. Rising costs are supporting steel prices in many markets despite subdued demand.
Producers said regional markets are facing different challenges, with European mills particularly affected by high energy costs. CELSA Group export director Alex Gordienko expects India to remain focused mainly on its domestic market, while Southeast Asian suppliers are likely to remain competitive but more selective in export markets.
Gordienko said growing overcapacity and trade barriers are reducing access to export markets and contributing to greater regional fragmentation. He expects individual markets to increasingly follow their own cycles as domestic policies and trade measures gain importance.
Traders also highlighted higher freight costs, war-risk premiums and changing import requirements. SEBA Group chairman F.D. Baysal said these factors are making steel trade more regional, while Middle East shipments remain particularly affected by freight and logistics uncertainty.
Raw material suppliers pointed to higher freight, energy and financing costs and potential restrictions on scrap exports as key risks. Stena Metal International’s Jens Bjorkman said scrap will remain the principal raw material for EAF-based steelmakers, with HBI and DRI expected to supplement rather than replace it.