We have now entered a rising-cost business cycle, which is making the situation in the worldwide market for long steel goods worse. According to the International Rebar Producers and Exporters Association's most recent short-term prognosis, inventories are holding up far longer than anticipated as a result of the market's lack of demand (Irepas).
Regarding the steel market, Europe and the rest of the globe appear to be on separate planets. Energy prices in Europe are rising at an unprecedented rate, and a logistical dilemma is also present.
Due to the present geopolitical climate and production cuts planned by European steel companies, steel prices are rising in the EU.
Demand and supply in the US haven't altered all that much recently. However, import rivalry is now less fierce. Nearly all US ports are severely congested, which is a challenge for importers. The time it takes to deliver discharged goods might often be months. Meanwhile, the continual shifting of cargo at ports caused by a lack of space results in damage.
The cost of manufacturing has grown by USD 40 per ton as a result of the recent increases in gas and electricity costs in Turkey. Furthermore, cheaper imports from Russia are a problem for Turkish steel manufacturers.
According to Irepas, the forecast for the upcoming quarter is gloomier and uncertain.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.