The European stainless flat products market remains subdued, with demand flat at very low levels following a sluggish summer across the region. Prices have slipped because of the standstill, sources tell Kallanish.
Market participants do not expect prices or demand to improve until buyers reduce their elevated inventories, a process that could take a few months. One large Southern European processor expects stability until the end of the year, as producers’ costs remain too high to allow price reductions. Weak demand is limiting price increases. A separate source expects prices and demand to improve from January 2027, as European inventories are depleted and imports are constrained by EU quotas and CBAM.
Another source notes that in the first half of the year buyers purchased around 30% more material than usual, encouraged by a generally optimistic outlook as prices were rising along with new trade measures. That extra stock is now being used very slowly. Demand from both end-users and service centres remains weak and is expected to stay that way in the coming months.
There are variations, with some European markets holding better prices than others despite generally subdued volumes everywhere. In France, sheet prices stand at around €2,850/tonne ($3,289/t) delivered, some €100/t above Germany and Italy where prices remain at €2,750/t or below.
End users remain cautious, pushing for lower prices given weak market conditions. While some sellers are holding firm and losing orders, others are cutting prices to retain business. One source expects weakness to persist, with long-term contract buyers increasingly negotiating lower prices.
As Europe is overstocked, several sources say they are not buying coils and may resist without buying for some time. “What I see is against logic,” a northern European coil buyer tells Kallanish. “Prices were supposed to increase. With the quota system and CBAM, mills should be able to raise prices, but downstream demand is too weak, and the recovery anticipated for September is not happening.”
European cold rolled coil prices have eased to €2,580-2,600/t delivered, while Italian prices have fallen from €2,580/t in early July to €2,530-2,560/t. Polished edge Italian HRCs stand at €2,350/t and €2,400/t delivered in the rest of Europe. Mills in Europe are quoting October and November lead-times. The level of €2,650/t quoted for November delivery is not yet achieved.
Meanwhile, stainless steel producer Aperam is extending its product range in Europe, with its 304L and 316L grades now available in thicknesses up to 15mm in 1,500mm width, in both coils and sheets.
Aperam says in a note it is the only European producer offering this combination, expanding options for demand applications while maintaining the quality and consistency of continuously rolled stainless steel.
