The global long steel products market is facing an unprecedented structural crisis, according to the latest report from IREPAS, the international association for longs exporters and producers. The market is currently oversupplied and overcrowded, leading to historically thin margins and a near-impossibility for producers to negotiate price increases. This intense competition is exacerbated by the 50 percent US steel import duty, which has disrupted both the domestic US market and international trade flows.
Demand for long steel products is declining notably in Europe and Turkey, with no immediate signs of recovery unless there are significant changes in end-user consumption patterns. Adding to the pressure, cheaper billet imports from Asia are driving prices down further. IREPAS highlights that prices for steel billets originating from Far Eastern and Southeast Asian countries are falling almost daily, making billets a more economical choice than scrap for steel production.
China remains a dominant force in this oversupplied market, leveraging weak domestic demand, lower blast furnace production costs, and export subsidies to undercut competitors. This combination is intensifying downward price pressures globally, deepening the crisis faced by long steel producers worldwide.
