Vaccine news drives EU stainless steel market growth

Ahead of the last few weeks of 2020, the European stainless steel market is looking at what the new year will bring. The second round of coronavirus-related lockdowns and tightening restrictions are starting to be lifted again in several parts of Europe.

This time, the measures appear to have had minimal impact on recovery in most countries compared to the decline seen in the spring. In addition, positive vaccine news helped boost market optimism, although it is likely that the pandemic will continue to erode activity through at least the first half of 2021.

The demand for stainless steel has improved among several end-user sectors. New car registrations in Europe have returned to pre-pandemic levels. Home appliance manufacturers are also reported to be busy replenishing their product range. However, stocks of certain grades and sizes of stainless steel are currently low after a relatively strong first quarter of 2020 and no restocking activity between March and September. As a result, the volume of orders for the mills, especially for the materials intended for these segments, began to grow.