According to the latest monthly market report published by Assofermet, an association representing Italian steel trading, distribution and processing companies, the Italian steel market is currently facing continued weak demand in the secondary market and the upcoming implementation of a trade policy that could significantly change price trends during the summer months.
Carbon sheet metal production service centers are facing a low volume of orders, but expect to recover by the summer.
In the carbon sheet metal segment, the recycling market continues to show structural weakness. Rare exceptions are the shipbuilding sector, defense, energy (with a special focus on renewable energy sources), and several industrial niches. In recent weeks, European steel mills have recorded a slight decrease in their price offers. The service centers immediately responded to this reduction and intensified it in an attempt to collect orders and replenish the still insufficient order portfolio.
However, according to Assofermet, this negative trend does not seem to be in line with the new European regulatory framework. The upcoming entry into force on July 1 of new EU protective measures, which are characterized by a significant tightening of import quotas and a doubling of duties exceeding quotas, combined with CBAM restrictions and existing anti-dumping measures, will dramatically reduce procurement opportunities from non-EU countries.
Although these restrictions will not directly affect consumption, they will strengthen the position of steel producers in the EU in the negotiations. For this reason, it is reasonable to expect that during the summer months, inventory reductions and the need for new purchases will lead to a change in trend, leading to a return of prices to a significantly higher level.
Sales of stainless steel decreased in May
For service centers specializing in the production of stainless steel, the situation is exactly the opposite: in May, there was a noticeable slowdown in sales.
There was a decrease in real demand, while sales volumes fell by 15-20% compared to previous months.
As the extraordinary factors that artificially supported prices during the first four months of the year subsided, the structural weaknesses of the sector came to light. The profitability of distribution and processing companies is currently under severe pressure due to difficult-to-manage corporate costs, stagnating demand, and strong competitive pressures. Currently, the association does not predict specific signs of recovery in the coming months, noting: "Thus, the market is still characterized by
