Assofermet on the Italian steel market: Lack of momentum in April amid global tensions and slowing industrial growth in the EU
The "Made in Steel" exhibition, recently held in Milan, failed to become a turning point for carbon steel sheet production service centers, despite high expectations. Steel demand remains weak, further constrained by the April holidays. As highlighted in the monthly market report of Assofermet Acciai, an association representing Italian distributors of scrap, raw materials and metal products. The market remains disoriented: European factories are reducing production but maintaining a solid commercial position, while competitive pressure from Asian manufacturers is increasing due to weak domestic demand and export problems to the United States. A new incident at the Acciaierie d'Italia blast furnace No. 1 has once again raised concerns about the future of the Taranto plant. In this regard, Assofermet continues to monitor changes in European legislation, defending the interests of distributors and end users.
As for flat rolled stainless steel, demand was lower than expected in April. Oversupply prevented a price recovery, while volatility in nickel prices and a reduction in stainless scrap supplies further destabilized the market. Very short delivery times indicate a low volume of orders, and negative results from leading European manufacturers in the first quarter reduce the likelihood of further price declines. May starts with weak signals, which corresponds to a broader slowdown in industrial activity in Europe. The distribution sector remains under pressure, operating with zero or even negative margins. However, regulatory updates expected in the second half of the year, along with greater clarity on the CBAM mechanism, could be a turning point.
As for warehouses, according to Assofermet, there was an increase in both volumes and prices for flat rolled products in April, returning it to an average level comparable to last year. It remains to be seen whether this reflects real demand or is just a result of restocking. Long products also tend to grow, albeit more moderately, while stainless steel production continues to decline year-on-year. Although tensions over trade duties appear to have eased somewhat, many uncertainties remain. "In addition, the fire at the former Ilva plant and subsequent political statements have raised new doubts about employment and future production at the Taranto plant," the report says.
The tinplate production sector is experiencing high tension due to new restrictions on imports from third countries. Customs