The Made in Steel trade fair lately held in Milan failed to deliver a turning point for carbon flat steel service centers, despite high expectations. Steel demand remains weak, further hampered by the April holidays. As highlighted in the monthly market report by Assofermet Acciai, the association representing Italian distributors of scrap, raw materials, and steel products. the market remains disoriented: European mills are cutting back production but maintaining rigid commercial positions, while competitive pressure is mounting from Asian producers, driven by weak domestic demand and export challenges to the United States. A new incident at blast furnace 1 of Acciaierie d’Italia has reignited concerns over the future of the Taranto site. In this context, Assofermet continues to monitor European regulatory developments, advocating for the interests of distributors and end-users.
Regarding stainless flat products, April ended with demand below expectations. Oversupply prevented any price recovery, while nickel volatility and a decline in stainless scrap further destabilized the market. Very short delivery times reflect a shallow order book, and negative first-quarter results among leading European producers reduce the margin for further price cuts. May begins with weak signals, in line with the broader slowdown in European industrial activity. The distribution sector remains under pressure, operating with zero or even negative margins. However, regulatory updates expected in the second half of the year, along with greater clarity on the CBAM mechanism, could offer a turning point.
As for warehouses, acording to Assofermet, April saw a rebound in both volumes and prices for flat products, bringing them back to average levels comparable to those of last year. It remains to be seen whether this reflects genuine demand or is merely a result of stock replenishment. Long products are also on an upward trend, albeit more moderately, while stainless steel continues to show a year-on-year decline. Although trade duty tensions appear to have eased somewhat, many uncertainties persist. “In addition, the fire at the former Ilva plant and the subsequent political statements have cast new doubts over employment and the production future of the Taranto site,” the report notes.
The tinplate sector is experiencing high tension due to new restrictions on imports from third countries. Customs clearance is becoming more complex as operators try to avoid duty payments, distorting the market and leading many to postpone purchasing decisions. With European prices having reached their ceiling, some import-focused traders have been forced to raise prices to recoup losses from the second quarter. A bright annealing line has also been shut down by a major European producer to improve production efficiency. Finally, according to the Italian association, the fire in Taranto is not expected to have a major impact on the tinplate market, given the now marginal role of Acciaierie d’Italia in this segment.