Iberian steel distributors in Spain and Portugal anticipate a challenging 2025 due to global trade uncertainties and geopolitical instability. While activity levels remain positive in some sectors, others face difficulties, leading to expectations of weaker demand in the first half of the year. However, an improvement in activity is anticipated in the latter half as uncertainties ease.
The sector is grappling with rising steel prices, tight profit margins, and uneven demand across industries, particularly in construction, which has been impacted by increasing costs. Distributors are also contending with competition from steel producers engaging in direct sales to end customers, which has disrupted traditional supply chain dynamics.
To remain competitive, distributors are focusing on adding value through advanced technologies, personalized services, and optimized stock management. However, challenges such as high costs, limited investment capacity, and a shortage of skilled professionals persist. Industry participants are calling for government support to facilitate access to modern technologies and strengthen the sector's competitiveness.
