The Italian steel market remained weak in February, broadly in line with the trend seen in January, amid caution along the supply chain, according to the latest monthly market report issued by Assofermet, the association representing Italian companies active in the trading, distribution and processing of steel, scrap and nonferrous metals.
In the carbon flat steel segment, buying interest for coils from service centers remained limited, while end-users continued to purchase only to cover immediate needs. Market sentiment was mainly weighed down by operational difficulties and regulatory uncertainty linked to the Carbon Border Adjustment Mechanism (CBAM) and the upcoming entry into force of the new EU safeguard measure. In particular, the application of country default values for CBAM calculations is seen as economically penalizing and is making it more difficult to reach sustainable agreements with non-EU suppliers.
Assofermet also noted that the new safeguard regime, featuring lower quotas and higher duties on out-of-quota volumes, together with the extension of antidumping duties on cold rolled coils, is set to structurally increase the cost of imported steel in Europe. This is strengthening the pricing position of European producers, while also raising concerns about the ability of EU manufacturing to absorb higher costs without losing competitiveness.
In the stainless steel segment, February saw a further increase in selling prices, though this was driven more by supply constraints than by any real improvement in demand. According to the report, the price of European coil has already increased by 10 percent since November 2025, while downstream consumption remains stagnant and continues to be affected by geopolitical tensions, the weak European economic environment and rising imports of semi-finished and finished products not yet subject to CBAM.
For stockholders, trading activity in February remained overall weak, despite an increase in volumes handled compared to the same month last year. The total value of sales, however, recorded a slight decline. According to Assofermet, the market is showing a clear split between the regulatory push supporting volumes in carbon flat steel and the stagnation of real consumption in the stainless segment. Long products, both carbon and stainless steel, also remained under pressure.
The overall picture continues to be fragile, with geopolitical tensions, particularly recent developments in the Middle East, posing further risks for energy and transport costs. At the same time, the weakness of key European economies such as Germany and France is continuing to weigh on demand. Overall, market sentiment remains tilted toward higher costs, though with significant caution regarding the outlook for end-user demand in the coming months.