The latest European Federation of Steel, Tubes and Metals Distribution & Trade (EUROMETAL) Market Sentiment Survey for October 2025 reveals a cautious mood among European steel distributors. While current market activity appears to have stabilized after months of decline, confidence in a sustained recovery remains weak. The industry continues to face fragile demand, low visibility, and defensive strategies heading into the final quarter of the year.
The assessment of current business activity held steady in October, marking the second consecutive month without further deterioration. Although activity remains slightly below neutral, this stability suggests that the market may have reached its lowest point following the sharp decline over the summer.
Outlook for Q4 turns slightly weaker
Expectations for the next quarter slipped modestly, reversing the cautious optimism recorded in September. The softening sentiment indicates continued uncertainty over demand and economic headwinds across major EU markets, with distributors maintaining a wait-and-see approach.
Inventory outlooks remain largely unchanged, with most distributors pursuing defensive stock strategies and expecting stable volumes. However, price expectations rose for the third consecutive month, showing the strongest positive reading since early spring 2025.
This trend suggests that distributors anticipate moderate price increases in the coming months, potentially reflecting tightening supply and restocking cycles in Q4.
Industry remains cautious despite improving price sentiment
The October survey highlights a sector in holding pattern, where stability in operations contrasts with subdued forward confidence. Although sentiment on pricing is improving, distributors remain wary amid weak demand fundamentals and limited visibility for recovery.
According to EUROMETAL, the continuation of this cautious optimism could mark the first stage of market consolidation - but only if underlying demand begins to recover in late 2025.