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Alexander Gordienko was speaking at the International Rebar Exporters & Producers Assn (Irepas) meeting and Steel Orbis conference in Munich on Monday October 1.
“The first six months of 2012 have seen a reduction in long products consumption in Europe, but a recovery of consumption globally,” Gordienko said. “I forecast global growth of 8% year-on-year in consumption of long products in 2012.”
Current growth in the global rebar market is mainly fuelled by Asian countries, Celsa said, with the USA also performing well.
Rebar is expected to continue to take market share from the sections market, as growth in the global construction market shifts to developing countries.
“This [increase in market share] is because the main growth in construction is coming from the developing countries and emerging nations, as opposed to industrialised countries,” Gordienko noted.
“Asia will be the main consumer of rebar in 2012, while China continues to have the highest rebar consumption per capita,” he added.
Celsa remains positive on global long products consumption in the near future.
“We remain optimistic in the mid-term as overall demand for long products is increasing in the world,” Gordienko said. “The situation is not that bad worldwide and we do expect an improvement.”
However, the steelmaker said steel mills are expected to continue to feel pressure on margins from raw materials prices and pricing competition.
“Overcapacity continues to be a problem [especially in Europe] and export areas will need to readjust capacity,” Gordienko said.