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Prices and volumes of steel may bottom out in the second quarter: Irepas

Prices and volumes of steel may bottom out in the second quarter: Irepas

Prices and volumes of steel may bottom out in the second quarter: Irepas

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As there will be a large drop in capacity from scrap to billet to long-lasting steel products in the second quarter – with Easter and Ramadan and the uncertain development of coronavirus effects – Q2 / 2020 could be will be a low point in price and volume, the International Association of Rebar Manufacturers and Exporters (Irepas) said in its latest short-term outlook, adding that the main question will be how long it will take. to return to normal state.

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“The impact of the COVID-19 coronavirus pandemic on economies or market conditions in countries and regions will be to varying degrees, which could change the dynamics of demand and steel production. separately, “Irepas noted.

Note that some areas may see a shortage and others may see a surplus, Irepas said: “It will take more time for these balances to be balanced, or significant differences in prices to be there. could be as persistent as it was decades ago. “

Note that oil prices fell as global demand plummeted, and raw material prices followed, Irepas said raw material supplies were slowing down and projects were difficult to implement. “In some cases, the demand is still good but the demand for raw materials cannot be met. This is a very unusual situation. The amount of scrap available is significantly lower because industry and commerce have stalled in Western world, “Irepas declared.

After falling to as low as US $ 207 per tonne CFR in early April, scrap prices have risen substantially to start this week amid some supply issues. Import price of Turkish HMS scrap 1/2 (80:20) stood at USD 230.50 / tonne CFR on Thursday, an increase of USD 20.50 / ton compared to last week.

“The current situation in the global long steel market can be described as unstable, like global and regional politics and economy, and like the evolution of a virus pandemic,” Irepas said. said in these cases, Q2 will be mass survival while the survival and fate of the global long steel market in the third quarter will be determined when the virus peaks.

“There is certainly no reason for economic activity not to recover once we have reached the peak of the virus crisis. All we have to avoid is social instability,” Irepas concluded.

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