The latest market sentiment survey by the European Federation for the Distribution and Trade of Steel, Pipes and Metals (EUROMETAL) for January 2026 indicates that the steel distribution sector in Europe entered the new year with greater stability, but with limited momentum, as activity levels remain low while price expectations continue to strengthen.
The survey indicates that the market has stopped deteriorating after the volatility of 2025, but still expects clearer signs of recovery under the influence of demand.
Estimates of current business activity show slight changes compared to the last months of 2025, while the overall mood remains close to the neutral line. While activity remains at relatively low levels, the absence of further declines confirms that the market has stabilized after earlier weakness.
This prolonged period of flat activity suggests that distributors have found a temporary equilibrium, albeit one characterized by subdued order acceptance and cautious customer behavior.
The short-term forecast shows a modest improvement
Expectations for activity over the next three months have improved slightly compared to the end of 2025. Although confidence remains fragile, fewer and fewer respondents now expect a further deterioration in market conditions. This cautious improvement reflects tentative optimism that demand may gradually return to normal as 2026 progresses.
Inventory management is still characterized by discipline and risk aversion.
