In the carbon flat steel sector in Italy, end-user demand has shown signs of weakening in early February, while mills’ prices continue to rise, generating uncertainty among buyers, according to Assofermet, the association representing Italian distributors of scrap, raw materials and steel products, in its new press release. Factors such as the economic situation in the EU and the conflicts in Ukraine and the Middle East contribute to slowing down consumption. European steel mills, however, maintain robust prices, due to import limits and reduced production capacity. Non-EU supply remains competitive, but the risks of quota exhaustion make offers less attractive. Increases in steel costs could lead to an increase in sales prices in the short term, Assofermet noted.
In the stainless flat steel segment, the industry continues to struggle with distribution prices insufficient to cover operating costs, while possible production shutdowns in Europe could stabilize prices. Obstacles facing shipping via the Suez Canal have also had a limited impact on prices of imports from non-EU countries.
As regards the carbon flats and longs markets, January was below expectations and a significant presence of inventories has been reported. Assofermet concluded by stating that February will be crucial in determining whether the price rises will be sustainable without an increase in demand.