The European market for stainless long steel, including wire rod, bars, and other niche products, is experiencing a persistent decline, with prices reaching their lowest levels in recent years, according to supplier sources.
Two mill executives indicate
In response to contracting consumption, Europe is experiencing what can be characterised as “a new normal”, with mills adjusting their operations by idling equipment for several days each month to align with current demand levels. The stainless longs segment is going through “a recessive phase, not only in Europe but also in the US and Asia”, another northern European mill source comments.
US tariffs are significantly affecting producers in both Asia and Europe. Asian material supply, particularly from China and India, is currently experiencing a shift in direction towards Europe. EU quotas are effectively curbing robust Asia-origin supply but are not entirely halting the flow of material into the market, which “remains huge”, the source adds.
One mill reports ongoing sales in the US; however, US customers have prudently scaled back their orders, opting to purchase only what is essential to mitigate the impact of tariffs. EU mills are believed to have lost about 30% of their sales to the US as a consequence of tariffs.
The EU safeguard revision has proven to be ineffective for the European stainless longs sector. There has been a lack of action at European level to safeguard the segment from significant imports, which is largely attributed to influential lobbying by buyers.
End-user sectors have reported declining longs consumption over the past year. The US oil and gas sector has curtailed investment. One source indicates the current demand driver in Europe is the defence sector, which is anticipated to sustain its momentum due to projected capacity enhancements.
Questioned about potential projections for recovery, both sources concur “there is no outlook”. Certain macroeconomic developments might nevertheless lead to favourable outcomes for the market, including the resolution of the Russia-Ukraine conflict.
European mills are adopting a long-term perspective, navigating challenges using strategic cost management, while simultaneously pursuing investments focused on vertical integration and expansion. The strategy, which has also been adopted by some European flats producers, seeks to mitigate businesses’ exposure to the cyclical dynamics of the steel industry while diversifying production.
Coil producer Aperam has purchased US specialty steel producer Universal Stainless & Alloy Products as part of its strategy to enhance market position, expand geographic footprint, and diversify product offering. It is targeting high-growth sectors, including aerospace and industrial applications.
At its Imphy site in France, the Luxembourg-based producer is doubling capacity and boosting wire rod supply, serving the aerospace, automotive, and welding consumables industries.
Italian longs producer Cogne Acciai Speciali, a subsidiary of Walsin Lihwa, also intends to strengthen its position in the special steel industry by boosting its portfolio and expertise in the global market. The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden (see Kallanish passim).
Cogne and Walsin’s growth strategy focuses on increasing market share in Europe and Asia while enhancing the group’s presence in the US market.
Natalia Capra France
