Demand in the global market of long products remains generally low, all attention is focused on geopolitical events.
The balance of supply and demand in the global long products market has deteriorated somewhat for international business since June, although supply has begun to respond. Global crude steel production rose from 1.7% year-on-year in June to a 0.3% decline in July, while China's crude steel production rose from 0.4% to a 3.6% decline in the corresponding months. However, global production in the period from January to July decreased by only 0.6 percent year-on-year, which does not yet indicate a significant rebalancing. It is extremely difficult to predict the market situation in the coming period, especially given the geopolitical events affecting the Black Sea region and the Strait of Hormuz. International trade is becoming an increasingly difficult task. Overall demand remains low, while supply and logistics disruptions are putting upward pressure on prices.
,Energy costs are increasing significantly, the overall environment is becoming more inflationary, ,
,At the same time, energy costs have increased significantly. Natural gas prices in Europe and other countries remain at very high levels, electricity prices are following the same trend, while coal prices have also increased. Consequently, the overall situation is becoming more inflationary. Thus, we are faced with an unusual combination of relatively weak demand, rising costs, and supply-side pressures, which creates significant uncertainty and volatility in the international steel market.
Exports of rolled steel from China continue to grow, while investment in real estate is declining.
Meanwhile, China's real estate market continues to grow. Investments decreased from 18.0% in the first half of the year to 19.2% in January-July, including investments in fixed assets and infrastructure. Investments decreased at a higher rate of 6.7 percent and 3.6 percent, respectively, in the period from January to July, compared with corresponding declines of 5.7 percent and 2.4 percent in the first half of the year. China's steel exports continued to exceed 10 million metric tons in July, while exports of rolled steel increased by 20.9 percent in July and by 12.3 percent from January to July. Combined with the tightening of EU and UK import quotas from July 1, this means an improved balance in protected markets, but increased displacement to the remaining open markets. The imbalance is redistributed rather than eliminated.,Higher costs are starting to push up prices in the EU. ,
,Demand in the EU market remains weak, partly due to the summer season and continued lack of activity.