In the European market, the Stainless Steel (Flat) prices showcased a downward momentum in the last week of March 2023 as the expectation of a second-quarter of 2023 recovery faded amid dwindling market dynamics. The European Stainless Steel (Flat) market has remained weak in March, impacted by uncertainty, excess supply, and reduced consumption compared to 2022 peaks. Following relatively lower sales volumes in the first quarter of 2023, regional stockists and distributors foreshadow a weak demand outlook. Many industries that use Stainless Steel (Flat) anticipate a decrease in production this year compared to 2022. Manufacturers of Stainless Steel (Flat) and Stainless Steel (Long) products are anxious to sell their products, and as a result, prices have come under significant downward pressure at the end of Q1 2023. According to market participants, higher interest rates impede the downstream construction and automotive sectors. As a result, downstream automotive product output continues below the forecasted levels.

According to our sources, apparent Stainless Steel (Flat) demand in the region has stayed flat, with mostly hand-to-mouth bookings reported lately. However, Europe's growing need for domestic energy security is driving demand for Stainless Steel (Flat) for downstream industrial tools, especially those used in oil and gas projects. Distributors claim that the destocking of Stainless Steel (Flat) inventories is taking longer than expected time because of the weak demand. Buyers are still hesitant to make long-term purchases and choose to accept material from existing inventories whenever feasible. Traders say that bookings with the domestic Stainless Steel (Flat) mill are comparatively cheaper than the overseas market, and lead times are even shorter.

Local Stainless Steel (Flat) manufacturers are currently under pressure to close the price difference with imports. European market prices and Indian quotations fluctuate by a range of more than USD 1400–1600/MT, excluding any applicable duties. As a result, domestic producers of Stainless Steel (Flat) are offering discounts to sell off their remaining stock in order to contend with foreign market players. In particular, for Stainless Steel (Flat) goods, buyers assert that it is unlikely that the price decrease will result in any noticeable gain in buying activity while inventories are still high. Buyers worry that price reductions will further undervalue their current stock holdings. Despite this, European stainless-steel merchants have been complaining that some mills are having issues with quality, particularly with specific surfaces.

As a result of the bearish downstream automotive and construction inquiries, ChemAnalyst anticipates that Stainless Steel (Flat) prices will stay bearish in the coming week. Distributor competition is fierce, and resale costs have also dropped. Most market participants anticipate that the price and demand conditions for Stainless Steel (Flat) will remain challenging throughout Q2 2023.