IREPAS Flags Rising Costs and Trade Barriers Across Steel Raw Material Markets

Global steel raw material markets are facing growing pressure from higher freight, energy and financing costs, alongside increasing trade barriers, according to discussions at the SteelOrbis 2026 Autumn Conference and 95th IREPAS Meeting in Belgrade. Jens Björkman, chairman of the IREPAS raw material suppliers committee, highlighted a sharp rise in coking coal prices, which climbed around 60% within a few months. While the US recorded strong raw material demand during the first part of 2026 and India continued to grow, European steelmakers remain challenged by elevated energy costs. European scrap and steel movements have also been disrupted by low water levels on the Rhine, delaying shipments and keeping some material in inventories. India and Pakistan’s imported scrap markets are experiencing changing trade flows, with buyers facing longer delivery periods, larger shipment requirements and higher financing and freight expenses. Looking ahead, IREPAS sees increasing trade barriers as a major risk for the 2027 scrap market, potentially making global steel trade more regional. Despite growing interest in HBI and DRI, scrap is expected to remain the primary raw material for electric arc furnace-based steel production.