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, the Italian steel market continues to operate in a climate of widespread uncertainty and strong concerns, affected by the evolution of international crises and by the lack of concrete prospects for diplomatic solutions, at least in the short term.
In the carbon flat steel segment, the association stated that the combination of armed conflicts and US protectionist policies, which have yet to find a balance, is leading to a slowdown in demand from final users in European manufacturing. The market is also being weighed down by uncertainties related to the economic impact of the Carbon Border Adjustment Mechanism (CBAM) and by concerns ahead of the entry into force, on July 1, of the new EU safeguard measure, which provides for a 47 percent reduction in available quotas and a doubling of the duty for the clearance of volumes exceeding the quarterly quotas.
In this scenario, Assofermet noted, EU steelmakers appear to be able to support prices more through trade barriers than through any real strengthening of demand. No significant progress is expected in May, although service centers, despite lower sales volumes, may be able to recover part of the margins needed to offset the new purchase price levels. The growing difficulty in sourcing within the EU market all the grades required to meet customer needs also remains a critical issue, as these had previously been guaranteed by regular import flows which are now severely compromised.
The association also referred to the recent initiative promoted by EUROMETAL, called “Call to Action”, addressed to the governments of EU member states and to the European Commission, urging greater attention to the interests of European manufacturing. The document, also signed by Assofermet together with more than 400 European federations and companies, calls for measures to protect the European steel and metals industry, which is threatened by unfair competition, high energy costs and new global trade tensions. The requests include the extension of duties and CBAM to downstream and steel-intensive products, the introduction of the “Made in EU” principle in public procurement, and a reduction in energy and bureaucratic costs.
In the stainless flat steel segment, April saw a slowdown in demand, in a market environment still affected by geopolitical tensions and higher energy costs. Despite weak consumption, prices continue to rise, supported mainly by the sharp contraction in imports and the resulting strengthening of European producers’ bargaining power.
As for stockholders, April also confirmed a climate of strong caution, with sales down both in value and volume compared to the same month of 2025. End-user demand remains weak and purchases continue to be limited to immediate needs only, with no signs of restocking. Purchasing decisions are also being held back by US tariff policies and by uncertainty affecting the automotive and heavy mechanical engineering sectors.
By product, Assofermet reported a widespread decline in long products, a contraction in volumes in flat products and a mixed trend in hollow sections. Stainless steel remains the most affected segment, particularly tubular and long products, while some types of sheets and plates showed partial resilience thanks to demand from the food and chemical-pharmaceutical sectors.
Looking ahead to the coming months, the market is expected to remain in a wait-and-see phase at least until two key deadlines: July 1, when the new EU safeguard measures are set to enter into force, and August 1, the deadline for trade negotiations between the United States and the European Union. Distribution prices may remain supported by upstream pressure from producers, with possible effects on the margins of traders and service centers. CBAM, which became fully operational at the beginning of 2026, is also starting to represent a competitive advantage for operators sourcing from European producers, while progressively penalizing extra-EU import flows.