The July 2025 EUROMETAL Market Sentiment Survey reveals growing pressure across the European steel distribution sector, with worsening assessments of current activity, a weakening outlook for the coming quarter, and persistently negative price expectations. Stock levels, meanwhile, remain largely unchanged — highlighting a cautious and defensive posture among distributors.
Distributors appear to be responding pragmatically: holding stock steady while bracing for weaker demand and continued margin pressure. Unless broader economic conditions improve, the current trends suggest a challenging third quarter for the European steel and metals distribution sector.
Assessment of current activity
July 2025 shows a notable drop in sentiment compared to June. The sentiment has moved further below the neutral line, reflecting an increasingly negative assessment of current activity. This downturn breaks the relatively flat trend observed in the first half of 2025 and signals growing dissatisfaction or declining demand in real-time operations.
Future activity forecast
The forecast for the next quarter continues to decline, with July showing the lowest forward-looking sentiment in the past six months. The trendline illustrates a clear and consistent downward trajectory since May, confirming worsening confidence in short-term market recovery. Respondents are increasingly pessimistic about business conditions through Q3.
Stock position outlook
Stock expectations remain remarkably stable, with most respondents continuing to expect no major changes in inventory levels. This suggests risk aversion and careful supply chain management, as distributors prefer not to overcommit amid weak activity and uncertain pricing. The consistent bubble size and central positioning point to a wait-and-see approach.
Price development expectations
Sentiment toward pricing remains firmly negative, following a steep drop in May and no recovery since.
July shows a slight uptick compared to June but remains well below the neutral line, suggesting that expectations of price increases are limited. The data shows a continued lack of pricing power in the market, with respondents likely anticipating oversupply or muted demand to keep pressure on prices through the summer.
This analysis is based on the EUROMETAL Market Sentiment Survey, reflecting the opinions of 215 industry participants for July 2025.
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