It's time for another update on the price index of reinforcement steel.Since the beginning of 2025, we have observed a cautious recovery in prices. After a prolonged period of declines in 2023 and 2024, prices are stabilizing. This recovery is partly due to rising energy and transportation costs, which increase the costs of production and distribution. However, there are still many uncertain factors that keep the market in motion, such as geopolitical tensions, fluctuations in energy prices, and international trade agreements.
Of course, it's always like looking into a crystal ball. Some factors will have more impact than others, and there are always unexpected developments that can disrupt the market. We conducted online research and listed the most important data for you. We are experts in reinforcement, but not market analysts. Additionally, steel prices extend far beyond just reinforcement. These are our two cents based on what we know now.
Global crude steel production is about 3.4% lower than last year. This affects the availability of basic products for reinforcement steel. While China and Europe are producing less steel, countries like India and South Korea are expanding their production. This results in changes in international trade flows, which impacts the European market. According to recent figures from the World Steel Association, total production in Europe has decreased by over 5%, while India even showed a growth of 6%. These shifts put pressure on European availability and prices.
The United States, under the current administration, has reintroduced import tariffs on steel, which is impacting global steel trade. European producers are anticipating countermeasures. If trade routes change, this could affect the availability and price of reinforcement steel here. As a result, some European steel producers are focusing more on internal markets, increasing the pressure on availability in the Netherlands.
Since February 2025, steel prices have been slowly rising. This increase is reflected in the reinforcement steel market with some delay. Suppliers are trying to keep prices stable, but higher energy and transportation costs are putting pressure on the supply chain. Market analyses from Eurofer show that the average steel price in Q1 2025 increased by 4.2% compared to the last quarter of 2024.
There are several factors currently influencing the course of the reinforcement steel market, such as:
Raw materials like scrap and iron ore remain relatively stable, but energy prices continue to fluctuate. This creates uncertainty for producers, which translates into fluctuating steel prices.
Exchange rates make imports from Asia cheaper, despite existing tariffs. This allows for more Asian imports but presents challenges for European producers.
Of course, it's still a guessing game, but the market expects prices to rise slightly or remain at the current level in the coming months. This is mainly driven by large construction projects such as bridges, roads, and dikes, and construction companies already making purchases to prepare for future projects. Construction production is slowly stabilizing, despite nitrogen issues, and key projects in infrastructure and energy transition provide a stable base demand for reinforcement steel.
Increasing demand from the construction sector. This naturally raises questions: why is demand rising when there are reports of halted or canceled construction projects due to, for example, nitrogen regulations? Indeed, the construction sector is under pressure, but the demand for reinforcement steel continues to grow. This is mainly due to large construction projects like bridges, roads, and dikes, investments in sustainable energy (such as wind and solar parks), and construction companies stocking up in preparation for future projects. Reports from EIB and ABN AMRO indicate that projects in energy infrastructure, bridge renovations, and dike reinforcement continue despite pressure on housing construction.
Lower production within Europe, leading to higher prices.
Maintained import restrictions, which make European production more valuable.
We will continue to closely follow market developments. You can always consult the price index on our website every quarter for the latest information. We do our best to keep you up to date, but given the market's volatility, we cannot guarantee that changes will always be immediately visible.
