Very Positive Steel Market Outlook: Europe Sees Strengthening Activity in Key Plants
Europe’s steel market is exhibiting very positive trends as plant activity levels rise sharply across the region. Insights can be drawn from significant political developments reported in CDU stimmt Koalitionsvertrag zu, highlighting a potential shift in economic policies under the impending leadership of Friedrich Merz, which could positively influence industrial productivity. Additionally, the satellite-observed activity data reflects these optimistic prospects, particularly in Poland and France.
The activity levels of the CMC Zawiercie steel plant have consistently increased, peaking at 57% in March 2025, aligning with a general upward trend post-electoral activities reported in CDU stimmt Koalitionsvertrag zu. Notably, the plant’s activity remained robust at 56% in April, indicating stability amidst any political transitions. No connections were observed for the Uralwagonsawod steel plant, which recorded minimal data, suggesting operational uncertainties. Conversely, the ArcelorMittal Méditerranée Fos sur Mer steel plant encountered a decline to 30% in April after peaking at 41% in January, reflecting reduced operational efficiency possibly influenced by shifting market demands amidst evolving government directives discussed in Katherina Reiche: Die Pläne der neuen Wirtschaftsministerin.
The noteworthy decline in average activity to 18% by May indicates potential short-term material shortages and reduced procurement opportunities following rising inflation rates suggested in political discussions.
Steel buyers should monitor the CMC Zawiercie steel plant for proactive procurement strategies due to its consistent activity growth and potential to meet increasing demand for automotive and infrastructure sectors. However, potential supply disruptions from ArcelorMittal’s operational adjustments should lead to cautious sourcing strategies in the near term. Immediate procurement actions should consider the impacts of the evolving political landscape on steel supply dynamics, particularly in response to new economic policies that could reshape market conditions. Continuous observation of plant activity and government negotiations will be critical for effective sourcing decisions in this very positive market context.