LONDON The long steel
market could see fundamentals improve in December as output
reductions help to correct a supply/demand imbalance, according
to the International Rebar Exporters and Producers Association
"Buying activity in the market
should be slightly better due to the combination of existing
low inventories and the approach of the new year, but questions
will probably still surround the overall market situation until
after the (holidays)," Irepas said.
In the European market, a
strengthening euro will increase long product imports but could
weigh on the competitiveness of scrap exports, the association
Winter weather and the
approaching holiday season are expected to reduce scrap
availability in both the United States and continental
Prompted by poor demand and
higher scrap prices, long steel mills continued to cut supply
in November, putting pressure on margins, the association said.
"Raw material price increases strongly squeezed mills
margins in the E.U. market as the supply/demand imbalance got
Competition continued to be high
across markets in November, driving mills toward direct orders
with end-users and traders to consolidate their activities.
Although Irepas continues to see
some hope for demand in the North American markets and the
Asian and African markets look promising, the association
expects European mills to continue to adjust volumes to curb
A version of this article was first published by AMM sister
publication Steel First.