Upward pressure on steel prices is likely to continue for some time, with no prospects for demand weakening in the short term after its stunning recovery since the tail-end of 2020. So said International Rebar Exporters and Producers Association (Irepas) committee members at the association’s virtual meeting this week.

Governments around the world are introducing stimulus measures to help economies recover from the shock of the Covid-19 pandemic, which in turn is lifting demand for steel and other commodities. Freight rates have also shot up, making steel transport more expensive.

“We’re in a world that’s moving back to normal and everybody wants a piece of that,” Irepas raw materials suppliers committee chairman Jens Björkman said at the meeting. This is putting strain on raw materials prices and is likely to continue for some time, he added.

Demand for scrap remains huge and consumption is likely to increase further going forward, said traders committee member Wilhelm Alff. Oil prices have meanwhile increased in recent weeks. This is all happening at a time when ferrous inventory levels are low, he added.

Producers committee chairman Murat Cebecioglu said the construction season is starting, vaccination programmes are rolling out and governments are making investments. This means demand will be high in the coming months. Turkish producers can meanwhile easily adjust to changing demand levels as they have done in the past, he added.

Traders committee member F.D. Baysal added a note of caution, however. “I don’t think price increases will continue,” he commented. “We will see some correction.” Prices have risen to 2008 levels, with hot rolled coil in the US going to $1,300/short ton, which is “scary”, he added. “If there’s a correction, what are we going to do?” he warned.