Long Steel Market in A Slump, Global Outlook Fails to Impress

The long Steel industry across the world is still grappling with difficult times, particularly with respect to trade volumes and supply-demand balance. The Steel production decline observed in 2022 appears to be ongoing even in the current year, leading to a reluctance towards imports. As a result, the trade is mainly restricted to regional markets.

According to recent reports, European mills are currently facing intense competition for each order due to the sustained failure of domestic demand to recover. Despite expectations of a demand pickup in February, such an improvement failed to materialize. Moreover, continuing political tensions have negatively impacted potential investment levels, while higher interest rates are further exacerbating the situation.

Meanwhile, Steel demand levels in the US remain unchanged, but a dim outlook looms large given the ongoing banking crises and interest rate predicament. Similarly, the MENA region's local and regional longs trade have been affected by the ongoing Ramadan period and may strengthen towards summer but could then be impeded by adverse weather conditions.

The long Steel market at the global level has been witnessing a lack of stability and sustainability despite the normalization of cost levels, specifically in Turkey and the EU. Freight rates have been declining as well. However, the consumption levels in most regions are still unsatisfactory, leading to stiffer competition among potential global suppliers. Nonetheless, suppliers in some regions are experiencing relatively good margins due to domestic business activities.

Despite some positive factors like decline in energy costs and freight charges, the global market for long products seems to be in for a correction as per the forecast for May and June. The unsatisfactory outlook can be attributed to a decrease in imports and exports, inadequate supply-demand balance, and lowered consumption levels.