The European steel distributors association EUROMETAL’s October market sentiment survey indicates that most respondents expect a slight increase in prices over the next three months. However, overall activity is projected to decline slightly, with the exception of the steel trading segment, which anticipates a minor uptick. This comes as European mills have been attempting to raise coil prices since early October, following a significant drop in September. Despite these efforts, success has been limited so far.
Stock levels are generally expected to remain unchanged, although many flat steel service centers foresee an increase in the coming months, while traders predict a decline. In terms of end-use markets, respondents serving the automotive, construction, machinery, and white goods sectors expect slightly lower activity but higher prices. Conversely, the energy, packaging, and tubes segments anticipate slightly increased activity alongside higher prices.
Regionally, respondents in France, Portugal, and the Visegrad countries expect lower activity despite higher prices. Western Europe, including Austria, Belgium, Germany, Luxembourg, and the Netherlands, is the only region expecting unchanged prices over the next three months, coupled with slightly lower activity. EUROMETAL notes that while current activity levels are stable, future activity is expected to weaken, with distributors maintaining a conservative approach to inventory. There is a notable shift in price expectations, with some respondents predicting stabilization or slight increases, suggesting that price pressures might ease as the market adjusts.
