The sector has expectations for stabilization or a slight increase in prices
Steel distributors in the EU are facing weak demand, but there has been a marked change in price expectations. This is evidenced by the results of the October EUROMETAL Market Sentiment Survey, based on a survey of 251 respondents.
As noted, the EU steel and steel products distribution sector remains cautious towards the end of the year. Although current activity levels are stable, it is expected to ease in the future.
Market participants surveyed did not indicate any intention to significantly increase inventory levels, reflecting a focus on maintaining or slightly reducing them in anticipation of lower demand. This pattern emphasizes a cautious stance, as distributors are reluctant to increase inventory levels amid uncertain market conditions.
In terms of price expectations, some respondents foresee stabilization or slight growth in prices. The responses to the October survey indicate an increase in price expectations. Unlike in previous months, when sentiment tended to be downward, the October responses show a more balanced or somewhat positive outlook for the situation. This is likely due to market adjustments or expectations of supply constraints.
As reported earlier, according to a survey released at the end of September, EU steel distributors had a pessimistic outlook for Q4. The industry was likely preparing for a difficult end to 2024 with potentially lower prices. The September data showed that the majority of respondents believed that inventories would remain stable or slightly decrease in the fourth quarter.
Read more: EU increased steel exports to third countries by 6% y/y in January-July – EUROFER
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