Blechexpo: Restoration of flat rolled stainless steel products is slow
Prices for flat rolled stainless steel in Europe are expected to continue to rise, although consolidating the recent increase is likely to take longer than expected.
Further consumption remains challenging, reflecting trends seen in the carbon steel sheet sector, as well as in stainless steel production and processing plants, as confirmed at this week's Blechexpo in Stuttgart, attended by Kallanish.
While European roll purchases are projected to increase as buyers focus on local sources in the face of tough protectionist measures, stainless steel refiners do not expect a similar increase in sales.
"The situation should improve during the first quarter, as prices for rolls will rise and we will purchase more European materials. Factories will benefit from the new protectionist policy of the European Commission. Profitability may increase slightly in the coming months, but consumption levels are expected to remain the same as they have been recently," commented the German stainless steel manufacturer.
European factories are raising prices, although there is still some volatility in commercial behavior in the manufacturing sector. "No one can afford to lose orders. We've had a lot of difficult months with low or negative margins, so the plants are also aggressive from time to time," said another processor.
.All sources present at the event agreed that market recovery remains elusive. It is expected that there will be a more significant price increase in the first quarter. Currently, there is little demand for imported goods, as prices in Asia do not match European prices.
Large buyers, however, continue to attract imported goods. "We don't have a choice," one customer explained. "We cannot accurately calculate the cost of CBAM, so we buy almost blindly. Our forecasts may be incorrect, and we are taking a risk knowing that CBAM payments will begin in 2027."
A source at the plant said that end-user demand is stable, not decreasing or improving. Inventories remain high across Europe and are particularly high in slower markets such as Italy. The automotive sector continues to show low performance, which is reflected in a slowdown in consumer activity, while investments in heavy industry are postponed due to uncertainty.
According to market participants, the market will need at least six months to adjust to the new CBAM rules and protective measures, and it is expected that during this period