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Positive Trends in European Steel Market: Activity Rises Amid Pricing Speculation

The European steel market is exhibiting a positive sentiment as recent developments suggest increased activity levels despite ongoing pricing uncertainties. Key articles, including Northwest European rebar market debates hike attempt success and European longs market cautious at end of winter holidays, but talk about increases persists, indicate a cautious optimism regarding price adjustments driven by the Carbon Border Adjustment Mechanism (CBAM) and rising scrap prices. Satellite data reflects increased production activity in several steel plants, aligning with these market narratives.

Bar chart and satellite map of steel production activity in Europe

The satellite data shows a notable increase in activity levels in recent months. The Ferriera Valsabbia Odolo steel plant in Italy demonstrates a stable activity level, maintaining around 60% to 71% from July to October 2025, indicative of consistent operational capacity amidst pricing discussions. This aligns with the recent anticipation of price increases, as detailed in the article, The debate on the rebar market in Northwestern Europe has shown the success of the price increase attempt.”

Conversely, Alfa Acciai Catania showed a decrease, dropping to 0% by October 2025. This trend could reflect the uncertainties noted in the “European longs market cautious” article regarding oversupply issues and market acceptance of new prices. The Riva Alpa Gargenville plant also showed decreasing activity, maintaining low levels near 24% to 26%. Although direct connections to market news for these declines are uncertain, the competitive pressure suggests that the plant’s performance could improve if pricing strategies stabilize.

Despite mixed activity levels, there is a collective sentiment of optimism among some producers, as noted in the observed increase in activity levels alongside price discussions. Specifically, procurement professionals should monitor the Ferriera Valsabbia Odolo plant for potential supply stability and consider engaging with other plants to understand the regional supply dynamics and price negotiations better.

Given the current market landscape, buyers should act on rising stock prices and align procurement strategies around anticipated increases linked to CBAM and scrap prices. Engaging with stable suppliers like Ferriera Valsabbia, where activity levels are showing resilience, may provide security amidst the fluctuating landscape highlighted in the news articles.

In light of the observed dynamics and news reports, it is crucial for steel buyers to reinforce their supply chain resilience, focusing procurement on steadily active plants while keeping a close watch on developments surrounding pricing mechanisms and market stability.