Stainless steel prices in Europe will continue to decline – Assofermet

The reason is high inventories in service centers and weak demand in key sectors

A drop in cold-rolled stainless steel prices and production costs for European producers in the third quarter of this year will make their products more competitive with imports from Asia, including China and Indonesia. This forecast was made by Alessandro Bettuzzi, Sales Director of Oiki Acciai Spa and Coordinator of the Stainless Steel Division of the Assofermet Association, Argus Media reports.

High inventories in service centers and weak demand in key sectors (automotive, household appliances) are likely to mean a weak third quarter in Europe, especially in Italy, Bettuzzi said on the sidelines of the Made in Steel event.

A representative of Assofermet told Argus that market fundamentals are weak, with prices for nickel scrap falling. This, together with a further decline in electricity costs, will lead to lower stainless steel prices than current levels, restraining imports.

However, energy prices remain a problem for producers in Europe, and he sees investments in renewable energy as a long-term solution.

Since mid-March, the market for cold-rolled flat products has fallen by €100/ton, according to an Assofermet spokesman. At the same time, prices for these products in Europe were mostly stable in January-February. According to him, the downward trend is likely to continue until July, given that demand has been weakening over the past eight months.

Bettuzzi reiterated the importance of the EU protecting downstream products instead of focusing on protecting steel producers. Earlier, the EBA called on the EU to support not only production, but the entire steel value chain (trade, distribution, processing and end use).

Despite geopolitical instability and import pressure, leading European stainless steel producers Acerinox and Outokumpu showed improved operating results in the first quarter of 2025. The companies reported an increase in EBITDA and production volumes in the period.