The European steel market started the year with greater stability – Eurometal

The European steel market entered 2026 with greater stability but limited momentum. This is evidenced by a January survey by Eurometal, an association representing European distributors of steel, pipes, and metal products.

According to the study, current activity remains largely unchanged compared to the last months of last year, with no further decline. At the same time, expectations for activity in the first quarter show a slight improvement compared to the end of 2025. The January results indicate that market pessimism has moderated slightly. These results reflect hopes that demand conditions may gradually normalize over the course of the year, although the outlook remains limited.

Expectations regarding inventory levels continue to signal disciplined inventory management. Most distributors expect inventory levels to remain stable overall during January-March, with no signs of aggressive replenishment. This reflects a continued aversion to risk and a preference for flexibility in a market still characterized by weak demand and uncertainty in order books.

Price expectations remain the most positive indicator in Eurometal’s January survey. As noted, after a steady improvement in the second half of 2025, price sentiment has now clearly consolidated above the neutral line. This indicates that a growing proportion of distributors are forecasting stable prices or moderate price increases in the coming months.

“While this does not yet indicate a strong growth cycle, this trend may reflect tighter supply conditions, lower import availability, or expectations of gradual restocking after demand stabilizes,” Eurometal noted.

The analysis is based on Eurometal’s market sentiment survey, which reflects the opinions of approximately 200 industry participants for January 2026.

It should be recalled that the new EU measures on steel are to include a ban on metal products from Russia and Belarus, a proposal supported by the European Parliament’s International Trade Committee (INTA). In addition, the reintroduction of unused quotas was rejected and stricter “smelting and casting” rules were approved.