European steel distributors association EUROMETAL’s October market sentiment survey shows the majority of respondents expect prices to increase slightly in the coming three months. Activity is expected to decline slightly, except for in the steel trading segment which projects a slight increase.
This comes amid European mills’ attempts since early October to raise coil prices, after values plummeted throughout September. The attempts have been largely unsuccessful so far.
Although stock levels are, on the whole, expected to remain unchanged, a large portion of flat steel service centres indicated they would increase in the coming months, whereas traders projected a decline.
In terms of end-use markets, survey respondents serving the automotive, construction, machinery and white goods sectors foresee slightly lower activity in the coming period, albeit alongside slightly higher prices. The energy, packaging and tubes segments meanwhile expect slightly increased activity with slightly higher prices.
Notably, by region, respondents in France, Portugal and the Visegrad expect slightly lower activity despite higher prices. Meanwhile, Western Europe – made up of Austria, Belgium, Germany, Luxembourg, Netherlands – is the only region expecting unchanged prices in the coming three months – to add to slightly lower activity.
“While current activity levels remain stable, future activity is expected to weaken. Distributors are maintaining a conservative approach to inventory, aligning stock levels with anticipated market softness,” EUROMETAL says in its release dated 1 November. However, there’s a notable shift in price expectations, with some respondents foreseeing stabilisation or slight increases, suggesting that price pressures might ease as the market recalibrates.”
EUROMETAL divides the survey replies into three sets – “customer sector”, meaning association member type; “customer region”; and “responder activity”, referring to the end-use sector served.
Adam Smith Poland
