Assofermet: EU steel market faces reduced demand, international uncertainties

Tuesday, 12 March 2024 14:18:02 (GMT+3)   |   Brescia
       

During the month of February, the EU steel market continued to show signs of weakness, with a contraction in demand from users, as highlighted in the monthly market report by Assofermet Acciai. This contraction led to a reaction in the distribution system, with concessions of reductions in prices which were deemed excessive and illogical.

According to Assofermet’s analysis, carbon flat steel service centers had to face a challenging situation, with a predicted decrease in order collection compared to the same period last year. Procurements experienced a widening gap between the purchase prices of EU coils and those from import sources, generating uncertainties among buyers, especially regarding offers from outside the EU.

EU steel mills recorded a thinning of order loads, forcing them to reduce prices while remaining attentive to high production costs. The situation of the Taranto plant, was also mentioned, with the favorable reception of the appointment of new commissioners to lead Acciaierie d’Italia in the corporate restructuring process.

As for stainless steel flat service centers, Assofermet Acciai noted a general weakness in distribution prices, insufficient to cover the costs of incoming materials or the increases demanded by steel mills. Additionally, the significant strike at the Acerinox plant in Spain could cause significant losses in productive volumes.

Weakness in domestic Italian demand was recorded at warehouses, with a reduction compared to last year. International political uncertainty has contributed to a general wait-and-see attitude that has stalled investments, complicating strategic inventory planning.

Finally, for tin plate service centers, a recovery in demand was observed, with a price increase linked to the rise in hot coils compared to the low seen at the end of 2023.


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