Low demand for long steel products such as rebar was at the root of the problems facing the steel industry, according to the International Rebar Producers & Exporters Association (Irepas).
The raw material for blast furnaces was becoming cheaper but the ferrous scrap used in electric-arc furnaces was getting more expensive, while the prices for both rebar and hot-rolled coil were increasing. This was the cause of the current confusion in the global long steel products market, Irepas said in its latest short-range outlook published this week."Customers are making inquiries for longer than they normally would, and mills are incurring greater losses than they can afford, so they are halting production and have stopped offering," Irepas said. "However, the current price increase should not hold for long because the real problem is demand."Fastmarkets' daily index for steel scrap, HMS 1&2 (80:20 mix), US-origin, cfr Turkey, rose to $261.47 per tonne cfr on Tuesday November 12, up from $254.80 per tonne cfr on November 1 and $225.88 per tonne on October 1.The daily index for iron ore 62% Fe...