European steel prices approach the end of the current growth cycle

Buying activity, resale value and sentiment remain weak in the European flat products market in November.

Slow economic growth, global trade conflicts and political difficulties have increased pessimism. The lack of orders, in particular from the automotive sector, continues to have a significant negative impact on overall demand. European steel prices are under downward pressure. Domestic delivery times are short, allowing customers to either delay making a purchase decision or only buy small quantities.

Moreover, prices for offers from suppliers from third countries began to rise. Ilva is currently not accepting new orders due to ArcelorMittal's withdrawal from its takeover agreement with the Italian government. If this situation persists, it should help reduce supplies across Europe, leading to a reduction in capacity already held by other steel producers. Moreover, a number of buyers believe that prices are bottoming out for this cycle. Consequently, the restocking rate can begin after an extended phase of inventory reduction.