March and the first days of April were characterized by strong uncertainty in the Italian steel market due to the introduction of import tariffs by the US. This is what emerges from the monthly analysis of Assofermet Acciai, the steel division of Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products.
Starting from flat products, Assofermet described an uptrend in March. The slight recovery of consumption, however, has been jeopardized by the possible outcome of a global trade war. Moreover, new EU safeguard policies - which hamper steel inflow into the territory - may divert import volumes, hence generating possible price increases. “Since they are dealing with low demand, we have yet to understand if finished steel users will be able to support such rises without losing competitiveness in the international market,” Assofermet stated. End-users’ sales volumes, in fact, are still suffering from the automotive and white goods crisis, and there are no signs of a possible recovery in the month of April.
In the stainless steel segment, both longs and flat products are experiencing low levels of demand. Offers, however, are still abundant and this keeps prices under pressure. Nonetheless, Assofermet reports weak signals of stabilization, which could suggest a gradual rebalance. The scenario is rather complicated, Assofermet concluded, but “it offers some ease for those who will be able to be resilient to the market’s evolutions”.
As for warehouses, March recorded a negative performance overall, with the exception of seamless pipes. Steel sheets, on the other hand, seem to be the most affected category. The prospects, unfortunately, are not bright: with the introduction of new tariffs by the United States, some sectors such as mechanics could decide to revise their investment plans by reducing the volumes purchased in the face of a foreseeable drop in turnover due to the reduction in exports.
Finally, in the tinplate segment, there was a recovery in demand in Europe due to the introduction of a 20 percent cap for each country in the “Other Countries” quota. "Some tin coating plants, which remained inactive throughout last year, are gradually returning to full operation,” Assofermet reported.