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Assofermet: March disappoints in Italian steel market, Tube & Wire Exhibition awaited

Monday, 15 April 2024 14:38:35 (GMT+3)   |   Brescia
       

The market for flat and stainless steels in Italy has been influenced by a variety of complex factors, with attention focused on the outcomes of the Tube & Wire exhibition and decisions from the regulatory authorities, as highlighted in the monthly market report by Assofermet Acciai, the association representing Italian distributors of scrap, raw materials, and steel products. It remains crucial to closely monitor developments in the global context to adjust business strategies and address sector challenges, Assofermet noted.

The market for carbon flat steels experienced a further weakening of demand in March, resulting in a decrease in prices. Steel mills had to revise prices to counter Asian offers, while buyer interest appeared to be trending towards a potential short-term improvement. However, the quota provided for third-country hot rolled coils under safeguard measures has been exhausted, highlighting the shortcomings of the current regulations. “In the evaluation of a possible new extension of the rule for a further two years starting from July 2024, we hope that the EU commission will favorably welcome the requests for modifications that Assofermet has recently proposed,” declared the association.

In the stainless steel flat products sector, March witnessed price increases, though still insufficient to cover operational costs. Price tensions on scrap and prolonged strikes in Europe support expected price increases for the coming months. Imports remain limited, with decisions on antidumping procedures awaited.

Warehouses for carbon and stainless steel flat and long products were a source of disappointment compared to expectations, with reduced demand compared to the previous year, especially for long products. International uncertainty and the Suez Canal crisis contributed to undermining market stability, Assofermet stated.

Lastly, tinplate reflects current weak demand, with service centers’ attention focused on reducing inventories. Despite plant functionality issues, some suppliers report price stability and a US market opening that could boost global demand.


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