The beginning of summer is usually a busy time on the global long products market. But not this year. In most countries, the construction sector is showing weak activity. The unstable political situation, high interest rates, and depression in the global economy are hindering the development of the industry. Demand is low, and almost everywhere there are more sellers of steel products than buyers.
Competition in the market is intensifying. In particular, some companies from the Gulf countries are promoting billets to Turkey and rebar to Southeast Asia at very competitive prices. Chinese exports of billet and long products are increasing. Only in Europe, the new quota mechanism in the wire rod market leads to a decrease in competition in this sector.
However, in the European Union long products did rise slightly in price, but this is primarily due to the scarcity of scrap metal in the region and the increase in its cost. At the beginning of June, scrap quotations also rose in Turkey, so local producers of steel products are also aiming for price growth. However, for this they will have to overcome unfavorable trends in the domestic market and in exports.