According to the latest monthly market report issued by Assofermet on September 7, activity in the Italian steel market has gradually resumed after the summer break, although demand remains weak and the international backdrop is largely unchanged from late July. Geopolitical tensions and persistently high energy costs continue to weigh on market sentiment and steel consumption.
In the carbon flat steel segment, European producers are seeking to establish a new upward price trend, supported by high energy costs and stronger trade barriers limiting steel imports. However, Assofermet warned that distributors and downstream manufacturers are finding it increasingly difficult to pass higher raw material costs on to customers without further undermining their competitiveness. The association therefore reiterated its call for trade and environmental protection measures, if maintained, to be extended to downstream products as well as primary steel production.
Attention also remains focused on the future of Acciaierie d'Italia. Assofermet expressed concern over the Milan Court of Appeal's decision requiring the shutdown of hot-end production at the Taranto plant on October 28. The association has asked the Italian government for regular updates on the ongoing negotiations, given the strategic importance of the site for the country's steel supply chain.
In the stainless flat steel segment, July remained weak in terms of both shipments and prices. During the first half of the year, producers managed to secure significant price increases, helped by tighter import availability, while distributors were only partially able to pass these increases downstream, resulting in margin pressure. Final demand nevertheless remains subdued, keeping overall market conditions fragile.
In the stockholding segment, the July-August period ended with an overall increase in sales value compared with the same period of 2025, despite lower distributed volumes. The improvement was mainly driven by higher average unit prices, also supported by the new EU safeguard measures in force since July 1, while volumes continued to suffer from weak downstream demand. Long products remained the weakest segment in volume terms, whereas hot rolled flats recorded increases in both volume and value. The hollow sections segment remained under pressure.
Stainless steel also continues to face difficulties, particularly in tubular and long products, while stainless flats have shown better resilience in value terms thanks to a recovery in average prices. Alloy surcharges for grades 304 and 316 have also been increased for September. According to Assofermet, the post-summer period will now provide an important test for European mills' higher-price strategy, as weak consumption and elevated inventories could make it difficult for the market to absorb further increases.
On the regulatory side, from October 1 importers will also be required to document the country where imported steel was melted and poured. Assofermet noted that the outlook for the second half of the year is overall less negative than at the start of 2026, although distribution margins remain under pressure and uncertainty persists over the ability of downstream manufacturing to absorb the announced price increases.
Finally, in the tinplate segment, the tomato processing season has started positively, although supply availability for contracts in the coming months is expected to tighten. As a result, the metal packaging supply chain may increasingly turn to European producers or alternative origins such as Turkey and India as trade barriers continue to restrict other sourcing options.
