2023 concluded with a complex balance for the sectors represented by Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products. The year was characterized by a reduction in margins for steel and metal trading companies, while hardware maintained stability. However, 2024 opens with cautious optimism, although it continues to be heavily influenced by global political and economic phenomena.
In 2023, there was a predominant trend of price reduction in the steel sector, with the steepest declines recorded in the second quarter, followed by stabilization in the following months. The decrease in consumption in downstream markets was a key factor for this trend, while import bans on the Russian market and the increase in interest rates by the ECB contributed to an oversupply in the European Union. Although the political-economic context appears to be improving, stainless steel presents more complex challenges. However, optimistic forecasts for 2024 are fueled by the improvement in global economic conditions and the end of the policy of interest rate hikes.
The ferrous scrap sector faced instability, volume reductions, and a scarcity of demand in 2023, with negative impacts also from the manufacturing crisis in Germany and circulation restrictions imposed by the European Union. Despite 2023 being worse than 2022, the results exceeded the pessimistic predictions of 12 months ago. Prospects for the beginning of 2024 are not particularly bright, in line with what has been observed in recent months.
2023 was a challenging year for companies in the aluminum trade, with significant reductions in volumes and margins compared to previous years. The outlook for 2024 indicates weak demand, with discouraging signals from customers. Copper distributors also recorded a decrease in 2023, with expectations for the first quarter of 2024 aligning with recent trends.
The hardware segment recorded modest increases in 2023, especially for wholesalers. Despite not repeating the successes during the pandemic, the sector maintains an overall positive trend. Prospects for 2024 indicate similar rhythms to those of the last 12 months, with international trends continuing to influence the market.