There is still uncertainty in the flat rolled products market as global production slows down, with the exception of India, and demand in the secondary market remains under pressure, according to the Italian trade association Assofermet in a market overview reviewed by[b]Kallanish[/b].
After the Made in Steel event held in Milan earlier this month, the apartment market slowed down due to uncertainty. "The market, which does not have a clear direction, seems to be disoriented: on the one hand, European steel mills are reducing the capacity of their plants, while maintaining a tough commercial position supported by growing protectionist measures; on the other hand, there is growing pressure from Far Eastern producers, characterized by low domestic consumption and problems in the domestic market. exports to the United States," the note says.
Although the impact of tariffs appears to be waning, there are still several uncertainties that need to be addressed. May started with a sluggish market, which raised concerns among market participants. The Association notes that the uncertainty surrounding the fire at the former Ilva factory in Taranto, which is now Acciaierie d'Italia, raises serious concerns about the stability of employment and future productivity at the Taranto facility.
The Association continues to monitor the development of European laws on trade restrictions and the transition to low-emission steel production. The Association concludes that regulatory updates expected in the third and fourth quarters may be a turning point in the second half of the year.
Natalia Capra, France
kallanish.com
