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Global Steel Trade Outlook: Policy Shifts and Infrastructure Demand Reshape Export Markets

As global trade policies tighten and large-scale infrastructure projects accelerate across multiple regions, the international steel trade landscape is entering a new phase of structural adjustment. Recent developments in Europe, North America, Southeast Asia, and Latin America highlight both rising compliance costs and emerging demand drivers that are reshaping global steel flows.

Europe: CBAM Accelerates Structural Change in Steel Trade

 With the European Union’s Carbon Border Adjustment Mechanism (CBAM) set to enter full implementation in 2026, steel exports from Southeast Asia and Latin America to Europe are facing increasing carbon-related costs. As compliance requirements tighten, European buyers are placing greater emphasis on emissions transparency and low-carbon production.

This transition is expected to reduce the competitiveness of high-emission steel products, while encouraging exporters to diversify destination markets or accelerate investments in low-carbon steelmaking and certified supply chains.

United States: Elevated Construction Material Prices Persist

In the United States, the aftereffects of recent tariff policies continue to influence the construction materials market. Domestic steel prices remained elevated through late January, supported by trade protections and steady demand from industrial and infrastructure projects.

While higher prices provide short-term support for U.S. producers, they also reshape regional trade flows, encouraging indirect supply through neighboring markets and reinforcing demand for competitively priced imported steel products that meet U.S. standards.

 

Mexico: Large-Scale Housing Plan Signals Long-Term Demand

Mexico’s government has released further details of the “Plan Mexico” initiative, which aims to begin construction of approximately one million housing units in 2026. The program is expected to significantly increase long-term demand for construction steel, including steel rebar, H beams, and steel structural sections.

At the same time, existing trade measures may influence sourcing strategies, potentially increasing reliance on regional and nearshore suppliers while opening selective opportunities for qualified exporters.

Southeast Asia: Infrastructure Investment Remains Resilient

Singapore has announced that total construction demand in 2026 is expected to remain at a high level of SGD 47–53 billion, reflecting continued investment in infrastructure, commercial developments, and public works. This sustained demand supports stable imports of high-quality structural steel and customized steel solutions.

In the Philippines, Ayala Land has confirmed plans to develop a new central business district in Southern Luzon. The project is expected to begin stimulating demand for long steel products, particularly rebar, as early as this quarter, reinforcing the Philippines’ role as a key growth market for construction steel in Southeast Asia.

Latin America: Shifting Trade Flows and Mining-Led Demand

Following Mexico’s implementation of steel-related tariffs, part of the steel volumes previously destined for the Mexican market may be redirected toward South American economies, particularly Brazil. This shift could intensify competition in Brazil’s import market while supporting downstream construction and manufacturing activity.

In Chile, recent announcements of mining expansion projects have generated new procurement intentions for steel structures and heavy sections. Mining-related infrastructure continues to be a key driver of steel demand, particularly for high-strength and corrosion-resistant products.

Meanwhile, El Salvador and Honduras have jointly announced new cross-border road upgrade projects. These initiatives are expected to boost regional demand for construction materials, including steel and cement, while increasing cross-border trade within Central America.

Canada and Eurasia: Infrastructure Expansion Supports Long-Term Demand

According to a January report by Eurasia Group, climate change and the gradual opening of Arctic shipping routes are driving a surge in infrastructure investment in northern Canada. Projects related to ports, transportation, and energy are expected to increase demand for weather-resistant and structural steel products over the medium to long term.

In Russia, the accelerated construction of export-oriented logistics hubs and port facilities targeting “friendly countries” across Asia, Africa, and Latin America is supporting additional demand for steel in transport and infrastructure applications. These developments may gradually reshape global steel trade routes and reinforce South–South trade corridors.

These developments suggest that global steel trade is increasingly influenced by a combination of regulatory pressures and infrastructure-driven demand. While environmental compliance and trade measures continue to raise entry barriers in certain markets, large-scale construction and industrial projects across emerging economies are creating new opportunities for adaptable and globally oriented steel exporters.

Exporters with diversified market strategies, strong compliance capabilities, and flexible product offerings are likely to remain well positioned as global steel demand continues to evolve.

As global steel trade continues to evolve under the combined impact of environmental regulation, infrastructure investment, and shifting supply chains, experienced steel producers and exporters are increasingly focused on long-term reliability, regulatory alignment, and project-level understanding. Companies with sustained involvement in international steel supply, including Royal Steel Group, have placed growing emphasis on adapting products and logistics to diverse regional standards and construction requirements.

This broader industry perspective reflects a shift toward more resilient and responsible supply practices, supporting infrastructure and construction projects across multiple markets as global steel trade enters a period of structural transformation.

ROYAL GROUP

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Post time: Jan-26-2026