Spanish and Portuguese steel distribution representatives anticipate difficult market conditions in 2025 amid a complex global scenario.
Assessing the outlook within a climate of high international trade uncertainty and geopolitical instability is challenging, delegates tell Kallanish on the sidelines of the EUROMETAL Steel Net Forum Iberia in Vilamoura, Algarve.
“In general, the current level of activity is positive, although some sectors are facing difficulties, leading to expectations of a slightly weaker demand in the first half of 2025, accompanied by some concerns,” one participant comments. Looking ahead to the second half of the year, he expects an improvement in activity levels as some of the uncertainties affecting the market ease.
According to a Portuguese steel distributor, after three years of stability, the sector has maintained a good level of activity in 2024, despite a slight decline in turnover.
“Now, the situation has changed, with most market players trying to recover their margins at a time when steel prices are rising,” he observes.
A representative from the construction sector notes that steel demand has evolved unevenly across industries. Construction companies have been more exposed to rising costs, showing signs of weakness in 2024.
“We see prices increasing again, while demand is losing momentum. US tariffs are affecting the European and Iberian markets, although exports from the region to North America remain insignificant,” he points out.
Spanish and Portuguese steel distributors confirm that most major suppliers have increased their investments in 2024, focusing on modern equipment, recognising this as a key factor for competitiveness.
“The future lies in generating added value by meeting customers’ needs for more specialised products, so having advanced technology is essential,” one processing company owner comments.
The sector is unanimous in calling for government support programmes to facilitate access to state-of-the-art technologies and help strengthen suppliers’ competitiveness.
“The sharp rise in costs in recent years continues to put pressure on our already tight profit margins, which hinders investment plans,” a Portuguese steel seller says. “For companies to remain competitive and deliver value to society, ensuring their economic sustainability is crucial.”
Another major challenge for the sector remains the difficulty in attracting young talent. There is a shortage of technically trained professionals, according to some of the market participants.
