The European stainless steel sheet metal market is experiencing a significant decline, characterized by weak order receipts throughout the value chain and a steady downward trend in prices for rolled products, according to sources in the stainless steel sector.
Factories in Europe are cutting prices for supplies in June and July. From the highest level recorded recently, the cost of a roll in the EU has decreased by more than 100 euros per ton ($112), while the volume of orders continues to experience significant pressure, Kallanish notes.
The roll supply in Europe continues to exceed demand, with a significant influx of material from Asia expected by July. This situation is likely to increase the inventory level of buyers and will further reduce purchases in the domestic market.
Sources at factories and steel processing companies in Northern Europe indicate that the market is expected to be under constant pressure in the coming quarters. However, there may be a potential recovery after the summer, as inventory levels in Europe are forecast to decline. Such a scenario may force buyers to purchase the coil domestically, which will shorten the delivery time.
Service centers and their customers are currently making small deals, often on a mutually beneficial basis, to reduce risks in this unpredictable market environment.
Several refiners suggest that shipments in the first quarter were in line with those in the first quarter of 2024; one of them reports achieving modest profits. "Today, if you are positive, it is already a success," he adds.
Several service centers are facing financial difficulties and are unable to raise the prices of sheet metal, which are currently considered unacceptably low. A source at the plant indicates that manufacturers may have reached the limit of their increased costs and are facing financial losses at current prices.
From a macroeconomic point of view, the expected reduction in interest rates is likely to provide a more positive outlook, while end consumers seem to believe that demand has bottomed out.
A source at the plant confirms forecasts that the market will improve slightly in the fourth quarter. Current prices for domestic cold-rolled coils in Northern Europe range from 2350-2400 euros per ton, depending on order volumes and specific customer requirements.
The forecast for 2025 is unfavorable. Businesses compete for orders, and some of them are willing to lower prices, with the end user being the main beneficiary.,
