The Italian steel market remained disoriented throughout May, generally characterized by a crisis from which it is trying to recover. According to the monthly market report from Assofermet Acciai, the steel division of Assofermet, an association representing Italian distributors of scrap, raw materials and steel products, there was weakness in all steel production sectors, from scrap to finished products.
More precisely, flat carbon steel May turned out to be sluggish in the product segment, with negative sales volumes and an atmosphere of distrust that arose at the beginning of the month. There was growing uncertainty and concerns among operators caused by the ongoing trade and political tensions, as well as the economic crisis that China is experiencing and which affects the markets of the Far East. The decrease in sales volumes and, consequently, prices is also associated with the entry into force of the Carbon Boundary Regulation Mechanism (CBAM) in Europe in 2026, which will lead to a significant increase in the cost of steel imports from non-EU countries.
In addition, the European Union's trade policy, as reported in the note, barriers will limit imports, and some steel grades that are only available through imports may become unavailable in Europe.
The weakness in demand was also noted in the stainless steel flat rolled products segment after lower prices in April. Assofermet noted that the described factors affecting this sector highlight the lack of a "protectionist policy to protect the entire steel supply chain." This atmosphere of uncertainty has affected prices, the fall of which reduces the margins of distributors who do not hide their concerns.
As for warehouses, sales decreased in almost all product categories in May, with the exception of some niche products. Both long and short positions – although the latter were more stable than the former – showed declines, while pipe prices recovered slightly.
Finally, the uncertainty also affected the tinplate segment, which was characterized by significant expectations for early July, "when the impact on the market of customs clearance of significant volumes of materials imported from Turkey and India, which are currently in port terminals, will be clearer," the note says. It is also worth noting that the supply of European materials has increased, which is unusual at this difficult time.
Steelorbis.com
