“Competition in the market is healthy, but there is enough demand for everyone. Accordingly, there is no concern about competition in general. The current state of the market is ideal for rolling over very good forecasts for the next quarter, "says the new report association.
According to analysts, the global business environment is improving with the increase in vaccine distribution, especially where coverage of vaccinated citizens has exceeded 30 percent. Vaccinations and the summer season will help most countries return to normal life, which in turn will support demand for metal products.
Demand in the global long products market has continued to grow lately, and in particular, demand in China and advanced economies continues to push the market towards growth. At the same time, the international supply was further reduced. Most factories offer deliveries several months in advance, thereby pushing prices upward. There is an imbalance between supply and demand for rebar, but customers seem to have come to terms with the continued price increases, IREPAS said.
Shipping continues to be the biggest challenge. In addition to shipping, credit insurance is dwindling as prices rise. Until now, steel mill customers have found ways to work around this, but this remains a challenge for the future. Another problem is that in the US market “good orders” lead times are getting shorter. On the other hand, geopolitical winds can cause a change in the landscape.