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IREPAS: the steel market is at the bottom in a state of relative equilibrium

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Almost zero margin may cause the collapse of the market, if scrap prices and iron ore prices seriously drop, noted in the International Association of exporters and producers of rebar.

IREPAS: the steel market is at the bottom in a state of relative equilibrium

currently, the gap between the price of scrap metal and commodity armature is practically zero, despite the fact that demand is influenced by both political and economic circumstances, including flash coronavirus. About it saying in summary the International Association of exporters and producers of the IREPAS rebar following the conference, the SteelOrbis Spring '20.

"Because the margin where it is, it may seem that the market is in equilibrium close to the bottom, if the price of scrap and iron ore prices will not fall", - said the expert.

raw material Suppliers said that although steel production in Europe and the United States is gaining momentum, short-term pricing trends indicate a further fall in prices in the short term.

it is Expected that the scrap market will continue unstable period, according to the suppliers of raw materials. They added that uncertainty and protectionist measures have affected and will continue to play a role in pricing in the future.

IN IREPAS said the main topic of discussion during the meeting was the outbreak of coronavirus.

the Potential impact of coronavirus on markets has been summarized as follows.

global Demand of iron ore will rebound after an initial sharp slowdown.

  • Taking into account the fact that Chinese steel mills have a huge unsold stockpile of steel after the outbreak, it is expected that prices will fall after the lifting of restrictions.
    • Also announced the first sentences of the blanks of Chinese origin in the Mediterranean region. Therefore, it is expected that China will soon return to the export markets.

    the Association said that there are two scenarios of the impact of the coronavirus in the steel industry: optimistic, where the business will lose a portion of the proceeds within two months of the epidemic on the background of the decline of confidence in the Chinese economy and pessimistic, which is that the steel industry will be in crisis, comparable to 2009.

    82nd meeting of IREPAS (international Association for exporters and manufacturers of valves) was held in Belgrade, Serbia, 1-3 March 2020 in the framework of the conference SteelOrbis Spring '20.

    Flash coronavirus had a negative impact on a meeting in Belgrade. After the end of February came the news about the cases of the coronavirus in Italy, many of the participants, who were to take part in the conference, decided not to go to Belgrade because of fears of becoming infected.

    as a result, in the SteelOrbis Spring '20 was attended by 77 delegates from originally was 346.

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