Conditions on the European steel market will remain stable in May: Platts review
European market participants began to expect higher prices and production and inventory levels to remain unchanged in May, data from the latest Platz European Steel Sentiment Survey showed.
Consumer price index
The overall consumer price index for May was 75 points, up from 92.50 in April, indicating that market participants still expect prices to rise, but at a slower pace than last month.
The opinion of traders, shareholders and service centers on the price was estimated at 75 points, and manufacturers also shared this opinion.
This happened after steel markets, especially flat markets, experienced price declines, mainly due to high inventory levels and weak end-user demand. Buyers took a wait-and-see attitude to evaluate new protective measures that have yet to be finalized, and as a result, activity decreased.
The Platts agency, part of S&P Global Energy, estimated domestic oil demand in Northern Europe on May 6 at 695 euros per metric ton from the Ruhr refinery, which is 15 euros lower compared to the previous month. Platts estimated domestic demand for HRC in Southern Europe at 690 euros per tonne, excluding production in Italy, which is 5 euros per tonne less than in the same period.
According to Platts, the average volume of shipments in Europe amounted to 820 euros per ton, which is 30 euros more than in the previous month.
Production index
The overall production index was 47.50 points, up from 61.25 points in April, indicating a potential slowdown in production as the market approaches the normally calm summer months.
The sentiment of traders, shareholders and service centers decreased on a monthly basis from 60 points in April to 45 in May. Producer sentiment was fixed at 50 points, down from 62.50 over the same period.
Inventory index
The overall inventory index stood at 50.83 points, virtually unchanged from the 52.50 points recorded in April, indicating that market participants expect inventory levels to remain stable.
This indicator was made up of 60 points received from traders, service centers and shareholders, and about 42 points from manufacturers.
Sources continue to note a high level of inventory in the market, as buyers purchased large quantities of materials back in the third and fourth quarters of 2025 in anticipation of new regulatory measures.
However, market participants also said that buyers will eventually need to replenish stocks, otherwise inventory levels will decrease, which may increase demand for domestic materials, given the current shortage.