September is a month of cautious recovery of the flat rolled products market, while sales volumes of distributors show moderate growth, and prices for some types of products are rising, according to the Italian Steel Trade Association Assofermet.
Inventory and demand management in the end-use sectors, especially in construction and the automotive industry, "will be crucial factors," according to a recent survey by the association published by Kallanish.
Uncertainty in the international arena remains high. If the tariff clarification reduced some ambiguity, it also confirmed the significant impact of US duties on the Italian steel market. "This situation creates an oversupply in the domestic market, which is fraught with further price reductions, especially for standard products," the note says.
The pre-year excitement remains in the Italian coil maintenance center market in September, but the situation is compounded by growing concerns about the cost impact of the Carbon Dioxide Boundary Adjustment Mechanism (CBAM).
Currently, the European Commission has not yet provided a clear calculation method for determining the cost of CBAM for each individual import transaction. Ahead of the entry into force of the new regulation, which will replace the current protective measure, which expires in June 2026, Assofermet has already informed the European Commission about a number of critical points that need to be taken into account at the research stage.
In the period from July to August, sales of service centers were supported by a partial increase in the price of rolls, which revived the interest of buyers throughout the value chain. However, the industry has faced significant difficulties in increasing the cost of the coil to consumers, and has faced persistently low demand in the secondary market and a widespread atmosphere of distrust and caution.
Natalia Capra France
Kallanish.com
