IREPAS predicts a 5.3 percent growth in rebar consumption this year

The International Association of Rebar Manufacturers (IREPAS) predicts a steady increase in global consumption of long products, especially rebar. According to the association, developing countries will continue to drive global rebar consumption. Meanwhile, China accounts for more than half of the world's total rebar consumption.

Global consumption of long steel products is expected to reach 840 million tonnes in 2014. Annual growth in rebar consumption is expected to reach 5.3 percent in 2014, while consumption growth will be driven mainly by a strong rebound in the North American construction sector, where consumption is expected to increase by 7.8 percent. The growth in rebar consumption in the European Union is expected to be 5.9 percent during 2014.

According to the association, Asian markets account for more than 70 percent of the world's rebar consumption. Among long products, rebar has the highest market share at 43 percent, followed by wire rod with 27 percent.

IREPAS also notes that the long-term foundations for increased use of long products remain solid, but geopolitical tensions in Ukraine and the MENA region pose a threat to the market in the near future. Steel producers have benefited enormously from the fall in iron ore prices, while margins for electric arc furnace producers remain contractual.