Germany's Stainless-Steel Hot Rolled Coil (SSHRC) industry showed amazing pricing stability throughout February 2025 despite worldwide market volatility and geopolitical concerns. This steadiness comes amid cautious market sentiment and persistent challenges facing the European stainless-steel sector.

Key Takeaways:

• German SSHRC prices remained stable in February despite fluctuations in raw material costs
• Slight uptick in order intakes observed early in 2025 for Stainless-steel products
• Leading manufacturers struggle with profit margins due to sluggish domestic demand
• Nickel price recovery on LME provides cost-side support for SSHRC
• Asian overcapacity continues to threaten European stainless steel market stability
• Upcoming German elections may reduce policy uncertainty affecting the Steel sector

The German SSHRC market has shown price stability in February even as other regions experience volatile fluctuations. While the European stainless-steel producers face considerable challenges. Weak domestic demand and persistent overcapacity in Asia are creating more pressure on profitability. Despite these issues, German manufacturers of stainless steel hot-rolled coils have managed to maintain their prices in spot market, aided in part by a recent increase in order intake.

Moreover, in the raw material side, Nickel which is important material to produce SSHRC showed significant price increased in the mid-February on the London Metal Exchange with costs rising significantly since the start of the month

Despite the raw material prices increased, the manufacturers have decided to absorb these costs, demonstrating the competitive nature of the market. Changes in U.S. trade policy could have major effects, especially on Asian exporters, and might shake up current trade patterns, putting more pressure on European markets. German SSHRC producers could be particularly affected by these changes.

The German elections could be a turning point for the domestic SSHRC market. Market participants are optimistic that new leaders will create more stable policies, which could reduce the uncertainty that has made investment and planning difficult in the sector. This political change might also impact the rules that controls SSHRC production and trade.

According to ChemAnalyst, while the current market has challenges, there’s a cautious sense of optimism. Short-term price stability is expected, but a slow recovery in domestic demand, along with possible supply shortages from Asia, could lead to slight price increases by mid-year. it is expected that the market to be challenged in the short term due to international trade uncertainty, nickel price volatility, and German political reform. However, SSHRC producers may see improved market conditions as these factors stabilize over the next twelve months.