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 face very weak demand, while pressure on costs remains high due to rising fuel, energy and logistics costs. The association also highlighted that the war on Iran and US protectionist policies are continuing to fuel uncertainty throughout the supply chain.
In the carbon flat steel segment, Assofermet stated that service centers are entering the second quarter with limited order books, after a first quarter marked by a sharp contraction in volumes. According to the association, the combined effect of CBAM, antidumping duties and the new safeguard measures expected to enter into force on July 1, 2026 is continuing to discourage imports, shifting demand towards European suppliers and strengthening their ability to push through further price increases despite persistently weak end-user demand. At the same time, supply issues from overseas continue, with the risk of reduced availability of grades traditionally sourced from import markets.
In the stainless flat steel segment, March ended with demand considered satisfactory compared to previous months, also in view of the price increases expected in the second quarter, mainly driven by higher scrap and energy costs. Assofermet noted that the market has so far absorbed an initial price increase of around 10 percent compared to the beginning of the year, though the distribution segment is already signaling further gradual increases in the coming months. However, the resilience of end-user demand remains crucial, as the market’s ability to absorb the new price levels without undermining customers’ competitiveness will largely depend on it.
In the stockholding segment, March showed a fresh slowdown, with volumes handled declining in most product categories. Weakness is affecting both flat and long steel products, while in stainless steel a slowdown was seen particularly in tubular products and downstream items. According to Assofermet, distributors continue to operate in an environment of extreme caution, with orders limited to strictly necessary volumes and no restocking activity. In this scenario, prices may remain stable or high due to upstream pressure, with possible negative implications for traders’ margins.
Also in the tinplate segment, the European market is showing an upward trend, supported by higher costs for tin, hot rolled coil, energy and transport, as well as by the progressive tightening of safeguard quotas. On the import side, Assofermet observed that many origins are now out of the market due to the combined impact of CBAM, duties and other restrictive measures, resulting in fewer sourcing alternatives and stronger bargaining power for European producers. However, still-high stock levels and uncertainty regarding downstream demand are continuing to slow the full pass-through of price increases along the supply chain.
