EU Steel Service Centers record higher shipments amid continued de-stocking in 2025
EUROMETAL’s latest SSC Market Monitoring report shows that European Steel Service Centers (SSCs) experienced a moderate rebound in shipments during the first nine months of 2025, while stocks continued to decline significantly across the continent.
Across the EU27, shipments of strip mill flat products increased by 0.5% year-on-year between January and September 2025, with September alone up 11.1%, signalling improving industrial activity. At the same time, EU27 SSC inventories fell by 6.2% over the nine-month period, reflecting cautious stock management despite strengthening demand .
A stronger performance was recorded in the AT–DE–NL–BE region, where shipments rose 1.4% year-on-year in January–September 2025 and 10.8% in September.
Stocks in this core industrial region were down 10.9% over the nine months, indicating sustained de-stocking across Northern Continental Europe.
Rising shipments combined with disciplined stock levels indicate that European service centers are cautiously adapting to recovering demand.
Carl Brockmeyer to head thyssenkrupp Materials Distribution & Trading
Carl Brockmeyer will become chief executive of the Distribution & Trading business unit at thyssenkrupp Materials Services on 1 December, the company informs Kallanish.
He will take over from Detlef Schotten, who will retire from tk Materials Services in March 2026 after more than 30 years with the company, following a transition and handover period.
Brockmeyer has been working at international industrial companies for around 20 years and has extensive experience in strategic business development as well as in the areas of service and digitalisation. He has held various positions at Oerlikon and Atlas Copco.
Ilse Henne, ceo of tk Material Services, emphasises Brockmeyer’s contacts with various customer industries that are important for the company. This and “his many years of international experience, particularly in North America, will help us continue our transformation from a pure materials distributor to a service provider,” she says.
Christian Koehl Germany
Stockholding: German steel sales rise 5.6% in March as stocks fall
Steel product sales in the German distribution and stockholding system rose 5.6% year over year to 863,963 mt in March on restocking, as inventories fell 4.7% to 1,886,182 mt , data from German steel stockholders’ association BDS showed April 24.
Sales of long steel products fell to 250,858 mt in March, from 254,763 mt in the same month last year, while flat sales increased to 533,267 mt from 496,755 mt. Other steel products climbed to 79,838 mt from 65,948 mt.
Stocks of long steel products fell last month to 659,410 mt from 646,239 mt reached a year ago, while inventories of steel flat products decreased to 1,189,091 mt from 1,288,941 mt. Other steel products dropped to 37,681 mt from 44,353 mt.
In March Germany produced 3.1 million mt of steel products, falling 11.7% year over year, the third consecutive month of double-digit decline for the country’s steel industry. Germany’s blast furnace steel producers registered the biggest drop in output, down 14.8% year over year to 2.1 million mt. Steel producers using electric arc furnaces produced 3.5% less crude steel in March at 1.1 million mt.
Platts, part of S&P Global Commodity Insights, assessed hot-rolled coil in Northwest Europe at Eur640/mt ($728/mt) base ex-works Ruhr March 31, up from Eur560/mt at the start of the year, with mills cutting production to sustain higher prices.
Platts assessed HRC in Northwest Europe at Eur655/mt EXW Ruhr April 23, up Eur5 day over day, and in Southern Europe at Eur625/mt EXW Italy, stable over the day.
Thyssenkrupp may sell distribution arm, sources say
Earlier this week, international media reported Thyssenkrupp’s intention to sell its distribution arm, Thyssenkrupp Material Services, as a part of a major restructuring effort intended to increase efficiency by divesting less profitable parts of the company.
“Our goal is to transform Thyssenkrupp into a high-performance and sustainable company with a portfolio of sectors geared to profitable growth,” the company’s spokesperson told Fastmarkets on April 11. “We want every single Thyssenkrupp business to develop in the best possible way and to achieve a sustainable competitive position.
“The declared aim is to generate a permanently positive value and cash flow contribution for the group, and a reliable dividend payment to our shareholders,” the spokesperson added.
“We will continue to pursue our strategy, with a focus on the separation of the Steel and Marine divisions. The primary aim for all sectors is to increase growth and performance. This may include growth through partnerships and portfolio activities, provided this makes sense strategically and technologically,” the spokesperson said.
In August 2024, the company sold a 20% share in its steel business to a Czech private energy company, and was discussing the sale of a further 30% stake.
Thyssenkrupp Materials Services is the group’s trading arm, offering a wide range of processing and logistics services, and employing around 16,000 people. In the fiscal year 2023/24, Thyssenkrupp Materials Services’ adjusted earnings before interest and taxes (EBIT) was €204 million ($231 million). The division’s sales for the same period were €12.1 billion.
By 2030, Thyssenkrupp, which is the largest steelmaker in Germany, intends to cut steel output by 2.5 million tonnes per year, with 11,000 jobs likely to be eliminated by the fundamental changes taking place across the European steel market.
Thyssenkrupp is currently building a 2.5 million tpy DRI module in Duisburg that was expected to have capacity for around 5 million tpy of low-CO2 steel by 2030.
In March 2025, Thyssenkrupp put on hold a hydrogen tender for its green steel plant due to elevated prices, but said that it was still committed to the Duisburg site’s green transformation.
Crisis in European steel market
According to the Organization for Economic Co-operation & Development (OECD), the nominal crude steelmaking capacity in Europe is well over 200 million tonnes per year, but actual output volumes have been lagging far behind that in recent years.
In 2022, crude steel production across Europe amounted to 136.30 million tonnes, down from 152.60 million tonnes in 2021, according to data from the World Steel Association (worldsteel). The decline was due to massive output cuts that were implemented by European mills in the third and fourth quarters of 2022, due to deteriorating demand and falling steel prices.
In 2024, steel output rebounded slightly to 129.5 million tonnes compared with 126.3 million tonnes in 2023, according to worldsteel. But the total volume was still below the 159.4 million tonnes recorded pre-Covid in 2019.
Steel production in Germany amounted to 37.23 million tonnes in 2024, up by 5.2% from 35.4 million tonnes in 2023.
But despite that slight rebound, steel production in Germany remained lower, and has been below 40 million tonnes for three years in a row, German steel federation WV Stahl said.
Earlier this week, Dutch steelmaker Tata Steel Nederlands (TSN) added to the problems in the European steel sector when it announced plans to undergo a large-scale transformation that will lead to the loss of about 1,600 jobs at its IJmuiden facility.
In March this year, the European Commission presented a Steel and Metals Action Plan to support the struggling industry, but it remained to be seen how the plan will be implemented and what results it will bring.
So far, the European Commission has focuses on tightening trade policies to protect the local market from unfair imports.
On April 1, the Commission introduced new, tighter, steel safeguard measures to support the domestic steel sector.
And from April 7, the EU has imposed anti-dumping duties on imports of hot-rolled coil from Egypt, Vietnam and Japan.
Europe’s steel sector was still at the heart of several regional economies, with approximately 500 production sites across 22 EU member states, the Commission said. According to EU data, the European steel sector contributes around €80 billion to the bloc’s gross domestic product and supports more than 2.5 million jobs.
BDS: German steel sales slump, stocks hit 3-year low as of Dec 2024
German total steel sales product fell 0.59% year over year in December 2024 to 462,264 mt, and down by 40.64% month over month, data from German steel stockholders’ association BDS showed on Jan. 22.
- Total steel sales in Dec 2024 drop 0.59% YOY to 462,264 mt
- Total steel stocks in Dec 2024 decline 3.96%YOY to 1.78 million mt
Last month, sales of the flat steel product category nearly halved to 281,045, down 40.23% from November and 3.05% from the same period in 2023, respectively.
Long sales also dropped to 136,204 mt, down from 143,297 mt in December 2023 and compared to 238,850 mt in November 2023, the data showed.
Other products stood at 45,015 mt in December 2024, down 40.9% year over year and 35.39% month over month.
The BDS data also showed that steel stocks in Germany went down year year over year and month month over month. Total German steel stocks products totalled 1.78 million mt in December 2024, slipping 3.96% compared to the same month of 2023 and down 1.54% from November 2024 to the lowest level since records started in January 2020.
Flat products decreased by 4.64% to 1.11 million mt in December, year over year, and by 2.77% month over month, respectively.
Long products stocks totaled 638,548 mt in December, down 2.10% year over year but up 0.95% month over month. The rest of the stocks under “Others” stood at 30,762 mt in December, down 6.42% compared to December 2023 and down 1.54% relative to November.
In December hot-rolled coil prices in Northern Europe moved sideways from Eur560/mt base ex-works Ruhr to Eur 560/mt ex-works Ruhr on Dec. 30, with prices that moved down by around Eur130/mt in 2024. Platts, part of S&P Global Commodity Insights, assessed hot-rolled coil in Northwest Europe at Eur580/mt ex-works Ruhr Jan.21, stable day over day
EU Steel Distribution faces continued weak demand, with upward shift in price expectations
The EU steel and metals distribution sector remains cautious as we approach the end of 2024.
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. However, there’s a notable shift in price expectations, with some respondents foreseeing stabilization or slight increases, suggesting that price pressures might ease as the market recalibrates.
Overall, while the industry braces for subdued demand, there is a glimmer of potential price resilience, which could provide stability as distributors navigate this challenging period.
Assessment of Current Activity
Responses are consistent with previous months, possibly reflecting a stabilization or slight dip in current activity levels. The general trend remains below the neutral line, suggesting that the sector is still operating at a cautious activity level, with no significant improvement.
Future Activity Forecast
Downward trend continues: October responses show a continuation of the pessimistic outlook for future activity. Most responses are positioned below the neutral line, following the downward trend observed in recent months.
Weak expectations for the coming months: The future activity sentiment indicates an expected decrease as we move toward the end of 2024. This sustained downward trend suggests that distributors anticipate a prolonged period of weak demand.
Stock Position Forecast
Steady or slight decrease: Stock positions for October remain stable, with only slight variations from previous months, indicating a conservative approach to stock management.
No aggressive restocking: Respondents show no intentions of significantly increasing stock levels, reflecting a focus on maintaining or slightly reducing inventories in anticipation of lower demand. This pattern underscores a cautious stance, as distributors are reluctant to commit to higher stock levels amid uncertain market conditions.
Price Development Expectations
Shift in price sentiment: October’s responses indicate an upward shift in price expectations, with answers positioned closer to the neutral line and slightly above it.
Potential stabilization or increase: Unlike previous months, where sentiment leaned toward declining prices, October responses show a more balanced or slightly positive outlook on price developments, possibly due to market adjustments or expectations of supply limitations. This change may reflect a belief that prices could stabilize or increase slightly as distributors adapt to market realities and adjust supply strategies accordingly.
This analysis is based on the EUROMETAL Sentiment Survey, reflecting the opinions of 251 participants. Interested in our Sentiment Tool? Contact us.
EU mills gain processed coil share from distributors
European stockholding distributors and steel service centres have conceded some share of the coil market to mills and their direct supply to consumers. This applies to cold rolled and galvanized coil more than to plain hot rolled coil, Kallanish learns from statistics issued by distributors association EUROMETAL.
“Direct mill sales improve their channel position gradually the further wide strips are upgraded by cold rolling and coating,” the association writes in a recent research paper.
Of all HRC sales in the EU, the share of mill sales directly to customers in 2023 was 23%, while that of steel service centres was 40%. The statistics also consider “mill sales as pre-material” – such as for tubemakers – which took a 24% share. The remainder (13%) was sold by stockholding distributors – Multi-Product & Proximity Steel Distribution – which play a lesser role in terms of volume.
The picture shifts for further processed coil. For CRC, mills took a share of 41%, with 42% taken by SSCs. Mill sales as pre-material obviously play a lesser role for processed coil; the share of CRC here is a mere 6%. Mills score highest on coated coil, with a share of 49%, against 30% taken by SSCs.
In total, of all strip products taken together, mills, in their direct-to-customer sales, lifted their share from 34% in 2021 to 36% in 2023, totalling 22 million tonnes. The share of SSCs in that two-year period dropped by the same rate, from 38% to 36%, also totalling 22mt.
EUROMETAL notes that distributors play an overall bigger role in sales of long products, for which they account for 75% of total EU supply (see European distributors lose volume in 2020s – 20 August).
Christian Koehl Germany
European distributors lose volume in 2020s
Geopolitical tensions, trade disputes and steel trade measures have disrupted formerly well consolidated supply channels, at the cost of stockholding distributors and service centres (SSCs), European distributors’ federation EUROMETAL says in a recent research paper.
The EU steel distribution sector has experienced a marked contraction, with business volumes decreasing from 77 million tonnes in 2021 to 62mt in 2023. The downturn was particularly pronounced in the Multi-Product & Proximity Steel Stockholding Distribution segment, which saw a reduction from 47mt in 2021 to 37mt in 2023. Service centres’ supply volume in 2023 was 25mt.
EUROMETAL assesses the overall European steel supply potential – what it calls the typical steel distribution product portfolio market – at 116mt in 2023. This compares with 117mt in the 2020 pandemic year, 138mt in 2021 and 121mt in 2022. However, of this total, nearly half is served by mills, with 54mt supplied from mills directly to end users in 2023.
The decline in recent years is attributed to a combination of factors, like the economic downturn, supply chain disruptions affecting production and consumption patterns, geopolitical tensions and trade disputes, EUROMETAL notes. However, “steel distribution remains a vital component of the supply chain, as it offers essential services such as stockholding, processing, and value-added solutions to customers,” the association affirms to Kallanish.
Looking at the typical product groups, EUROMETAL notes that service centres continue to be a major player, accounting for 44% or 21.9mt of strip product supplies to the general industry, automotive, and construction sectors. The end-user quarto plate market saw 3.8mt supplied by stockholders and SSCs, with 4.1mt sold directly by mills to end-user segments.
For long steel products, distributors maintain a dominant share of 75% (22.8mt) in supplying to end users, while direct mill sales to end users accounted for only 7.5mt. The market for tubular steel products, totalling 10.6mt in 2023, was equally supplied by EU steel distributors and direct mill sales, each accounting for 5.3mt.
Christian Koehl Germany
Germany’s Klöckner increases metal product shipments 8% on year in H1 2024
Steel and metal product shipments by Germany’s Klöckner & Co. increased 8.1% year on year to 2.3 million mt in the first half of 2024, the company said Aug. 1.
Acquisitions in H2 2023, particularly of New Jersey-based Amerinox Processing, helped boost its shipments in the US and Mexico, the steel and metals processor and distributor said in second-quarter earnings.
Second-quarter metals shipments rose to 1.2 million mt, up 11.5% from the first quarter and up 3.7% year on year.
However, sales slipped 2.6% year on year to Eur3.5 billion ($3.78 billion) in the first half of 2024 due to lower prices. This contributed to EBITDA falling 37% to Eur83 million. The company expects its full year EBITDA to be Eur120 million, down from Eur180 million in 2023, saying earnings in the prior-year comparative periods benefited from a more favorable market environment.
Demand has been weaker than expected in 2024, especially in Europe, the company said. Klöckner expects the Amerinox acquisition to drive a slight increase in shipments for full-year 2024 but sees sales falling year on year due to lower steel prices.
“Despite a challenging environment, we achieved a solid result and made further progress in implementing our strategy,” CEO Guido Kerkhoff said in a statement. “With the acquisition of Amerinox Processing in North America, we further expanded our range of higher value-added products and services.”
Amerinox processes stainless steel, aluminum and special carbon steel. Klöckner said it aims to use Amerinox’s favorable location at the major port of Camden to build competitive, global supply chains. In March 2024, the company disposed of parts of its European distribution business.
Prominox buys Outokumpu’s Mexican distribution business
Stainless-steel supplier Prominox has acquired the Mexican distribution business of Finnish steelmaker Outokumpu, Kallanish learns.
The agreement includes large centres in Mexico City, Guadalajara and Monterrey formerly known as Outokumpu Mexinox Distribution (OMD).
“We are delighted to incorporate Outokumpu’s solid distribution business into Prominox being confident that by adding the strategic locations and customer base to our portfolio, we are reinforcing our position as the leading stainless-steel distributor in Mexico,” says Prominox’s president, Ivette Autrique.
In a separate note, Outokumpu confirms that the divestment of the OMD unit is due in part to dedicate more resources to the strategic areas of Mexico and the US as the warehouses serve largely smaller volumes. “We will continue to fulfil customers’ orders that are served by OMD until the transaction with Prominox is completed,” Outokumpu adds.
The acquisition is now awaiting approval from Mexican authorities and other closing conditions. The transaction should be completed during the next few weeks.
Prominox and Outokumpu did not reveal any financial details of the agreement.
Todor Kirkov Bulgaria