With the start of a new quarter, it is high time to take a look at the current state of affairs in the world of rebar pricing.
From Q3 2020, we saw an increase in steel prices due to the outbreak of corona. Companies chose to stockpile more, due to the uncertain market. Demand increased, production stagnated and thus prices rose. The year 2022 was undoubtedly remarkable for the steel industry. You can certainly say that there was an explosion in steel prices. Besides corona, there was the invasion of Ukraine. Steel exports from Ukraine, Russia and Belarus virtually stopped. This meant a scarcity of steel. The rise in energy prices also contributed to the significant price increases for steel products. Companies in numerous sectors faced higher production costs, which ultimately impacted consumer prices.
As of Q2 of 2022, calm seems to be slowly returning to the market. Prices are falling steadily. Interestingly, current prices are approaching those of Q4 of 2020. This is a significant development, as it is the first time since the rise in 2021 that we have seen prices at this level again.
One of the main factors contributing to this drop in prices is declining demand for steel products. This reduced demand can be attributed to several factors, including reduced demand from the construction industry.
Companies are adjusting their production and investment levels, leading to lower demand for steel. This has led to a surplus of supply in the market, causing prices to fall.
The situation in Ukraine had a big impact on prices, but now falling demand seems to be the main factor affecting prices.
Of course, you can see that the falling steel prices have been incorporated into the products offered by Betonstaal.nl. On the site, our offerings are priced a lot more favorably than they were in 2022.
Whether the downward trend continues is, of course, a matter of a crystal ball. We continue to monitor the steel market and will continue to report on further developments in Q1 2024.
