German distributors continue to delay restocking their steel inventories, according to Klöckner & Co CEO Guido Kerkhoff. During a recent conference call, Kerkhoff noted that the point of replenishing shelves has not yet been reached.
Distributors are buying only as much as they expect to sell, reflecting cautious market behavior. While there are signs of a gentle price recovery, real demand remains subdued. Kerkhoff remains optimistic, however, believing that a return to regular business activity will eventually occur.
The company anticipates a slight drop in real steel demand in Europe for the fourth quarter, with the transport and automotive sectors being the most affected.
Despite the current low activity levels, the energy sector shows relatively stable demand. In contrast, Klöckner & Co is more positive about its performance in the USA, although it also expects a slight dip in demand due to election year uncertainties.
