The European steel distribution sector entered 2026 in a phase of stabilization, according to the January 2026 Market Sentiment Survey released by EUROMETAL, the European Federation of Steel, Tubes and Metals Distribution & Trade.
The survey shows that business activity has stopped deteriorating following the volatility experienced throughout 2025, although overall demand remains subdued. Sentiment indicators for current activity remain close to the neutral level, suggesting the market has reached a temporary equilibrium rather than entering a recovery phase.
EUROMETAL noted that distributors continue to operate with cautious order intake and restrained customer demand, while avoiding aggressive stock accumulation. Inventory levels are expected to remain broadly stable, reflecting a risk-averse approach amid ongoing uncertainty.
Looking ahead, expectations for activity over the next three months show a modest improvement, with fewer respondents anticipating further market deterioration. While confidence remains fragile, this shift points to tentative optimism that demand may gradually normalize during 2026.
The most positive signal in the survey relates to pricing. Steel price expectations have consolidated clearly above the neutral line, indicating that a growing share of distributors expect prices to hold firm or rise moderately in the coming months. EUROMETAL said this trend may reflect tighter supply conditions, reduced import availability, or expectations of gradual restocking once demand stabilizes.
Overall, the survey concludes that Europe’s steel distribution market has moved out of decline but has not yet entered a demand-driven recovery, with prudence and short-term visibility continuing to define market behavior.
VietnamSteel by Hoa Sen Group
