The International Rebar Producers and Exporters Association (IREPAS) has recently issued a report highlighting the ongoing challenges facing the global steel market. In its short-term outlook, IREPAS emphasizes the impact of escalating trade duties and protectionist measures that are reshaping the steel industry worldwide. According to the association, the market for long steel products has been severely affected by what it describes as “a spiral of duties and trade measures” leading to a protectionist climate “unlike any experienced before.”
U.S. Trade Policies Spark Uncertainty in Global Steel Market
The report singles out the United States for its central role in the current turmoil. IREPAS, which represents steel producers and traders from around the world, including Turkey, Spain, and the Middle East, states that the U.S. has introduced a series of unpredictable trade policies under the current administration. These policies, the association notes, have significantly increased uncertainty in global markets, leaving many industry players unsure of how to proceed. “Unpredictable decisions by the U.S. government can change the plans of market players overnight,” the report states. The association suggests that the U.S. has discovered a “best method of protection” by creating uncertainty, making it increasingly difficult for foreign steel producers to export to the U.S.
While IREPAS fears a closed-off U.S. market, the organization also looks at China’s role in the global steel trade. According to the association, China’s ongoing trade activity, coupled with its struggles to implement production cuts, has created further challenges. IREPAS is hopeful about potential production reductions in China following the national congress, but remains cautious about the country’s ability to enforce them due to economic difficulties at home. “Exports are becoming increasingly important for them,” the report concludes, pointing out that low domestic prices in China make steel exports more attractive.
European Union Faces Growing Threats from Global Steel Imports
The European Union is also at a crossroads in terms of its steel trade policies. IREPAS expresses concerns that the European Commission’s current stance on safeguarding against surging steel imports is insufficient. The association notes that there are no proposed defense measures to counter the increasing import volumes, leaving the EU vulnerable to more trade measures, especially from the U.S. This lack of action may open the door for greater imports and further complicate the EU’s already precarious position in the global steel market.
Declining Demand and Market Instability in the U.S.
Alongside trade issues, IREPAS has voiced concerns about the state of steel demand in the U.S. market. The association observes that demand for rebar and long steel products has worsened, with market players engaged in opportunistic buying in anticipation of potential future duties. This has led to a surplus of imported steel in the U.S., further dampening demand. “The general steel business in the U.S. has worsened,” IREPAS claims, noting that early imports in 2025 could further depress demand in the following months.
Challenges for Electric Arc Furnace (EAF) Producers and the Impact of U.S. Tariffs
Another key issue highlighted in the report is the rising price of scrap steel. EAF producers, particularly in countries like Turkey, are facing challenges as increasing scrap prices force them to turn to semi-finished steel billets instead. This shift in procurement has been exacerbated by the rising costs of scrap in the U.S., a situation that has made it increasingly difficult for EAF-based mills to remain competitive. “EAF-based mills are already priced out,” IREPAS explains, adding that Asian imports of semi-finished products have become a more attractive option for many mills, especially in Turkey.
Conclusion: A Volatile Global Steel Market
Overall, IREPAS paints a grim picture of the current state of the global steel market. The report describes the environment as unstable, with high volatility and intense competition. It warns that the market is almost at maximum levels of competition, leaving little room for growth or stability in the near future. As trade tensions continue to rise and global production faces significant challenges, the steel industry must adapt quickly to survive.
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