Tag: Sentiment Survey

The latest EUROMETAL Market Sentiment Survey for January 2026 confirms a market that has entered the new year with greater stability but limited momentum.

While current activity remains broadly unchanged and inventories continue to be managed cautiously, price expectations have consolidated at positive levels, suggesting that sentiment is gradually improving on the pricing side, even as demand fundamentals remain weak.

Based on responses from around 200 industry participants, the survey highlights a sector that is no longer deteriorating, but still waiting for clearer signals of recovery.

Current activity remains broadly stable

The assessment of current activity shows little change compared with the final months of 2025. Activity levels remains at the neutral line, but the absence of further decline confirms that the market has stabilised after the volatility seen earlier in 2025. This prolonged period of flat activity points to a market that has found a temporary equilibrium, albeit at subdued levels.

Near-term outlook improves slightly
Expectations for activity in the next quarter show a modest improvement compared with late 2025. While confidence remains fragile, the January results suggest that pessimism has eased somewhat, with fewer respondents expecting a further deterioration. This cautious improvement reflects hopes that demand conditions may gradually normalise as 2026 progresses, although visibility remains limited.

Inventory strategies remain defensive
Stock volume expectations continue to signal disciplined inventory management. Most distributors expect stock levels to remain broadly stable over the next three months, with no indication of aggressive restocking. This reflects ongoing risk aversion and a preference for flexibility in a market still characterised by weak demand and uncertain order books.

Price expectations consolidate at positive levels
Price expectations remain the most positive indicator in the January survey. After improving steadily in the second half of 2025, sentiment on prices has now consolidated clearly above the neutral line. This suggests that a growing share of distributors expect prices to hold firm or increase moderately in the coming months.

While not yet indicative of a strong upward cycle, this trend may reflect tighter supply conditions, lower import availability, or the anticipation of gradual restocking once demand stabilises.

Key takeaway
The January 2026 survey confirms a steel distribution market that has moved out of decline and into a phase of stabilisation, but without a clear demand-driven recovery. Activity remains subdued and inventories are tightly controlled, underscoring continued caution across the sector.

At the same time, the consolidation of positive price expectations stands out as a potentially important signal. If demand fundamentals begin to improve, this could mark the early stages of a more constructive market environment in the months ahead. Until then, prudence and short-term visibility continue to define sentiment across Europe’s steel distribution sector.

This analysis is based on the EUROMETAL Market Sentiment Survey, reflecting the views of approximately 200 industry participants for January 2026.