Demand continued to decline in the Italian stainless steel sheet market in May, according to[b]Kallanish[/b]participants.
Coil performance Rising prices in the pipe and sheet metal market indicate continued low sales volumes and price pressures. Organizations point to a reduction in order volumes, shorter lead times, and a generally pessimistic outlook. Companies engaged in recycling are experiencing significant financial difficulties.
"It's quite difficult to avoid a negative balance[margins]," says a representative of the service center
The service centers of Northern Europe share this opinion. In Italy, prices are falling faster than in Northern Europe, which makes the situation worse. Compared to rolls and sheets from Northern Europe, prices in Italy are about 30-50 euros per ton (33-56 US dollars per ton) lower.
"Today we cannot cover the costs, because we receive a cold-rolled roll at a price of 2,400 euros per ton and it is over," comments a source at the Italian service center.
The local stainless steel manufacturer notes a significant supply throughout the supply chain, in contrast to the noticeably weak demand for flat rolled products. The influx of Asian rolls, which is expected in the coming weeks, is likely to put additional pressure on stocks and reduce purchases of rolls in the domestic market.
Prices for a roll in Italy average 2,300 euros per ton. Steel refineries are currently receiving rolled steel, previously purchased at a price of 2,400 euros per ton, and selling rolled steel in the range of 2,500-2550 euros per ton.
A hot-rolled roll with rough edges is currently being sold at a price of 2,100 euros per ton.t has been delivered.
"The market is under threat until August," the steel processor believes.
Meanwhile, a source at the European plant also expresses a negative outlook, but expects that in the second half of 2025, imports may decrease in the market due to the start of CBAM on January 1, 2026.
He notes higher inventory levels, especially in Italy. Lower profitability and lower prices reduce the ability of refiners to maintain the value of their inventory. Italian refiners and factory sources note that prices in China are stable and agree that some improvement is expected in Europe by September or October.
According to the latest market survey by the Italian steel trading association Assofermet, oversupply is hindering the expected price recovery in the price level.
"The limited lead times observed for European manufacturers indicate insufficient
