Spanish and Portuguese steel distributor representatives see demand improving in the short term amid the complex global scenario, with the market undergoing a transformation. Steel prices should stay elevated with fluctuations of €5-10/tonne ($5.85-11.71/t), delegates told Kallanish during the EUROMETAL Steel Net Forum Iberia in Santander this week.
According to Spanish distributors association Unión de Almacenistas de Hierros de España (UAHE) president Roberto González, stocks in Iberia remain at a higher, healthy level, while companies in the sector have improved their services through innovation.
“Value is being added to the distribution chain because the market demands it. Good management by companies in the face of the challenging economic panorama does not consist only of selling steel, but also of supplying better and innovative services to customers,” González said.
The new economic reality is seen requiring new solutions from both producers and the distribution chain. The sector says that some long-standing concerns remain, but the market is showing positive signs of recovery and an improvement in the outlook.
“There is an increase in stocking in the Iberian Peninsula since mid-2025,” commented Arimany Ferro executive Josep Arimany. “Most of the distribution companies are already in good financial health and are moving more material. Producers are making profits thanks to rising prices, and the steel industry is reporting higher margins.” According to him, after restocking large quantities of steel, distribution centres seem to have transformed “from stockists to collectors”.
Arimany believes that, given the new market reality, the Spanish sector has reached a turning point regarding its future. “We must prioritise quality over sales volume. We are currently undergoing a period of transformation in Europe, in which regionalisation will become more entrenched alongside new protective measures. Our sales prices will be considerably higher than those of imported material. Entries will gradually decline as a result of the new trade regulations, and this will lead to fair competition within the continent, with a focus on value-added offers,” he noted.
Megasa’s representative at the event, Víctor Martínez, assured distributors that producers do not face any dilemma over whether to “produce to sell or sell to produce”.
“We are seeking a sustainable model for our operations. Our investments have brought us a new range of products, meeting very high standards, and this comes at a price. Demand for these products is constantly growing, which presents major challenges for the supply chain. The outlook is positive but very challenging,” said Martínez.
For Gerardo Garcia, an executive at León Tubos, the future of companies in the sector hinges on planning and sustainability. “We must cover our costs and ensure a return on investment amidst a climate of rationalisation and regionalisation,” he observed. “We must focus on local customers and nearby export markets.”
Distribution is an integral part of the production process because it reaches places that manufacturers cannot. This makes it an indispensable part of the value chain, according to Nicolás Rivas, chief executive of steel processor Susider.
“The value of the distribution sector lies in its responsiveness, its proximity to the customer, and its ability to provide innovative and rapid solutions to the market. Its future is linked to sustainability, the restructuring of the value chain with processes not offered by producers, and constructive dialogue aimed at developing complementary relationships with steelworks,” Rivas asserted.
Most participants at the event agreed steel prices will soon stabilise and participants should manage costs and improve customer service.
Some producer representatives, meanwhile, did not rule out the possibility that, in the not too distant future, a phase of corporate consolidation may begin within the distribution chain, which in Spain is one of the largest in Europe. This would be the result of rising inflation and oversupply.
