According to its latest monthly report released on November 3, 2026, Italian steel trade association Assofermet notes that the domestic steel market continues to show signs of weakness, with demand struggling to recover and prices supported mainly by European producers' pricing policies. Distributors are particularly affected, facing rising costs, high inventories and increasingly tight margins.
Carbon steel flats: Prices set to rise despite weak demand
In the carbon steel flats segment, October brought no significant improvement in consumption. Manufacturing activity continued to suffer from a shortage of orders, while intense competition among market participants limited their ability to pass higher procurement costs on to customers. No substantial change in demand is expected in November, although service centers may attempt modest increases in selling prices to recover part of their lost margins.
Meanwhile, European steelmakers have already raised their asking prices for deliveries in the final quarter of 2026 and appear determined to continue doing so in early 2027. Prices are being supported primarily by import restrictions, while industrial consumption remains too weak to justify a structural market recovery. The gap between producers' expectations and actual downstream demand is therefore widening.
The uncertainty surrounding the future of the former Ilva steelworks also continues to weigh on the Italian market. As previously reported by SteelOrbis on October 30, Italy's Supreme Court of Cassation rejected appeals against the ruling ordering the shutdown of hot-end operations at the Taranto plant, making the Milan Court of Appeal's decision final. Assofermet warns of the potential consequences for the domestic steel supply chain, particularly regarding raw material availability. The permanent exit of Italy's only integrated steel producer could further complicate procurement for service centers already affected by increasing import restrictions.
Stainless steel flats: No recovery expected before the end of Q1 2027
The stainless steel flats market also ended October without signs of recovery. Italian demand remains weak, while European producers continue to face high energy costs, with scrap prices broadly stable and nickel prices declining compared to mid-October. Distributors are struggling to pass on both raw material and operating costs, particularly transportation expenses, to customers. Abundant supply of certain widely traded grades, especially AISI 304, is adding further pressure. According to Assofermet, a recovery appears unlikely before the end of the first quarter of 2027, unless European producers reduce their production capacity.
In the steel stockholding segment, October figures point to a market supported more by higher prices than by any actual improvement in sales. Compared to the same month in 2025, the overall value of sales increased slightly, while distributed volumes declined by more than 25 percent. This divergence confirms persistent demand weakness, particularly in major steel-consuming sectors such as automotive, construction and household appliances.
Performance nevertheless varied across product categories. Long products were the hardest hit by declining volumes, despite a recovery in rebar prices supported by Italian producers. Flat products also recorded decreases in both volumes and total sales value, while hollow sections showed greater resilience, particularly cold-formed products. The stainless steel segment remained especially weak, with widespread declines across tubular, long and flat products.
Tinplate: Further price increases possible as European supply tightens
The European tinplate market, meanwhile, showed a clearer upward price trend. Despite still moderate consumption and substantial inventories, prices are benefiting from higher raw material costs and gradually declining European supply. Reduced spot availability, combined with greater production discipline among mills, could support further price increases in the coming months.
Looking ahead, Assofermet highlights that European safeguard measures, with 50 percent duties on volumes exceeding tariff-rate quotas, continue to influence procurement and support steel prices. However, weak industrial demand raises uncertainty over whether these increases can be sustained. For distributors, the main challenge remains protecting margins and keeping inventories under control while awaiting clearer signs of a recovery in consumption.
