The international rebar exporters and producers association Irepas says that global demand in long products markets has remained at reasonable levels during the course of the last 30 days. The organisation however says that it remains concerned about excess supply and “…the rise in protectionism around the world, which is squeezing international trade…”.

Regionally the market has been performing well in the Americas and showing better numbers in Europe. Elsewhere, market dynamics have continued to be strong in MENA countries, Africa and Asia, Kallanish understands.

Political unrest in the regions around Turkey has also slowed down demand and increased pressure on suppliers, especially Turkish mills, Irepas continues. There is also a fear that “…the gap between the costs of scrap and iron ore has severely damaged the competitiveness of scrap-based steel producers…” the association says.

Based on a projection of Worldsteel data for the first five months of this year, Irepas calculates that in 2014 the world will “…apparently consume 28 million tonnes more purchased scrap…” than in 2013. In spite of this healthy prognosis however “…competition between scrap processors for unprepared scrap restricts margins…” the association cautions.