Steel distribution in the EU: stability remains as price expectations rise
The latest EUROMETAL survey on market sentiment for January 2026 confirms that the market entered the new year with greater stability but limited momentum.
Although current activity remains broadly unchanged and inventory management remains cautious, price expectations have strengthened to a positive level, indicating a gradual improvement in pricing sentiment, even though demand fundamentals remain weak.
Based on responses from about 200 industry participants, the study identified a sector that is no longer experiencing a deterioration, but is still awaiting clearer signals of recovery.
Current activity remains generally stable.
The assessment of current activity shows minor changes compared to the last months of 2025. The level of activity remains at a neutral level, but the absence of further declines confirms that the market has stabilized after the volatility seen earlier in 2025. This prolonged period of sluggish activity indicates that the market has regained temporary equilibrium, albeit at low levels.
The short-term outlook has improved slightly
Expectations for activity in the next quarter show a slight improvement compared to the end of 2025. Although confidence remains volatile, the January results suggest that pessimism has weakened somewhat, and fewer respondents expect further deterioration. This cautious improvement reflects hopes that demand conditions may gradually return to normal during 2026, although visibility remains limited.
Warehousing strategies remain defensive
Expectations regarding inventory volume continue to indicate disciplined inventory management. Most distributors expect inventory levels to remain broadly stable over the next three months, with no signs of active restocking. This reflects the continued risk aversion and desire for flexibility in a market that continues to be characterized by weak demand and uncertain order volumes.
Price expectations are strengthening at a positive level
Price expectations remain the most positive indicator in the January survey. After a steady improvement in the second half of 2025, price sentiment has now settled clearly above the neutral line. This suggests that a growing proportion of distributors expect prices to remain stable or rise modestly in the coming months.
Although this trend does not indicate strong growth yet, it may reflect a tightening trend.