The European steel market remains under dual pressure from rising costs and weak demand. Geopolitical tensions in the Middle East and disruptions in the Strait of Hormuz have pushed natural gas prices higher across Europe, increasing energy costs and creating upward pressure on the production side. However, limited demand and the continued availability of low-priced imported and stock material are encouraging buyers to maintain a wait-and-see approach, which is restricting stronger price increases. Despite these factors, steel prices in Europe have continued to rise within the range of €5–20/t.
At the same time, widespread production shutdowns are not currently expected in Europe. Market sources indicate that some producers are attempting to adapt to market conditions by reducing capacity utilization or slowing sales rather than completely halting production. In Italy, some rebar producers have temporarily suspended sales, while others continue to offer material, although demand remains quite limited.
When examined by product segment, market performance varies. Demand in the rebar and long products segment remains weak, while relatively more stable demand is observed in hot-rolled coil and its derivatives, sheet, and heavy plate products. Prices for structural steel products such as HEA, HEB, IPE, and INP beams are also reported to be performing more strongly.
Overall, the European steel market appears to be caught between upward cost pressure driven by rising energy costs and geopolitical risks, and downward price pressure caused by weak demand. On a global scale, European producers continue to compete with lower-cost producers, particularly in China and Southeast Asia. Lower labor costs, government support, and more flexible carbon regulations in these regions are viewed by European producers as creating unequal competitive conditions.
As a result, both the European Union and regional producers continue to work on various trade measures and protection mechanisms to safeguard domestic production. However, in the current environment of weak demand, market participants state that geopolitical developments and volatility in energy markets will remain the key factors determining price direction in the short term. Developments in the Middle East and the trajectory of energy prices are therefore likely to keep uncertainty high in the European steel market in the coming period.
Comments
No comment yet.