NOWA STAL, March 2025 – excerpt from the article "Distributors of stainless steel: signs of market revival visible"

Statement from a representative of our company on the stainless steel market situation:

"The European stainless steel market has been struggling for months with an imbalance between supply and demand. The decline in demand for steel products is a result of the ongoing economic crisis. At the same time, a decrease in imports suggests that imports are not the main source of the problem. Meanwhile, the relatively high level of stainless steel production in Europe is leading to an oversupply of material, and prices—hovering on the edge of profitability—are forcing the implementation of efficiency-boosting programs.

Operating at the break-even point is pushing European mills to raise prices. The long-anticipated increases have now materialized—at the beginning of February, prices rose by €30 to €70 per ton. Despite this, order books at mills are starting to fill up, delivery lead times are extending, and further price adjustments seem inevitable.

Distributors are cautiously replenishing their stocks, considering the continued weakness of most stainless steel-consuming sectors. However, shortages of certain product categories are beginning to emerge in the market.

Although the European market is facing difficulties, the economic situation in Poland appears slightly better than in Western Europe. Polish companies, especially those focused on the domestic market, are performing better than firms primarily oriented toward exports.

However, investments—both in the private and public sectors—remain limited. Factors restraining growth include the war in Ukraine, high interest rates, inflation, the lack of EU recovery funds, and overall economic and political uncertainty. While customers are expressing demand for stainless steel, purchases remain relatively small in volume. Only ongoing, relatively modest projects are being executed.

Some optimism has been brought by recent announcements from the Polish government regarding investments aimed at stimulating the economy and reducing energy prices in the future. An additional boost may come from the EU's new "Compass for Europe" strategy, which envisions a more innovation-friendly and less bureaucratic approach to business. If these plans are implemented, political and economic stabilization could translate into increased consumption, an industrial revival, and, consequently, greater demand for stainless steel."

Izabella Suchorzyńska – Marketing Director of the Nova Trading Group