Italian service centers and distributors of long products report a calm April after the situation improved in March. Several companies have informed Kallanish that consumption of rolled products remains limited amid deep concerns about rapid price increases, cost inflation, and financial difficulties for producers.
Two groups of buyers report frequent delays in payments because buyers are unable to cope with the current price increases. Mill's forecasts of improved demand in the second quarter are not supported by any positive consumer signals or economic indicators. The Italian economy, which surpassed France and Germany last year, is now slowing, and industrial production growth has slowed for several months.
"Customers buy every day and only in small amounts. I usually buy second-grade material, which can be of very high quality, and we have some work done, but it's not enough to pay 100 euros per ton ($117.62 per ton) plus the surcharges that manufacturers request. The steelmakers have now become a powerful lobby and are so protected that they will be the only ones who will be able to make a profit this year, which will lead to disastrous consequences for further production, which sooner or later will lead to the opposite results," comments a source in the service center.
Distributor prices continue to rise, despite what one of the purchasing groups describes as "the desire of manufacturers to maintain market tension." The source notes that this is not only an Italian problem. Germany has some of the lowest prices for rolled metal in Europe.
After the closing of the pipe and wire exhibition, German buyers resumed some restocking operations, although not by raising prices. Prices in Germany were also affected by high import volumes in the first quarter, especially pipes from Turkey. However, a combination of smelting and casting regulations and new protective measures is expected to restrict imports, leading to higher pipe prices in Germany.
Despite this support, the consumption of pipes in Italy remains at the level of 2025, according to a source from the procurement group. A member of the second purchasing group complains about the complete lack of information about pipe sales and difficulties with their sale on the secondary market.
One of the longs agents says he is baffled by the consistent price increases, noting a lack of visibility and order volumes ranging from 30 to 90 tons, making it difficult to advise clients.
Several sources believe that the current disconnect between the steel sector and the end-use manufacturing sector will lead to
