The Italian and European steel markets in December have presented a scenario of significant uncertainty, as highlighted in the monthly market report by Assofermet Acciai, the association representing Italian distributors of scrap, raw materials, and steel products. November was marked by persistently weak demand and complex dynamics both upstream and downstream.
European flat carbon steel mills continued to push for price increases despite weakened and stagnant demand in end-use sectors. However, the lack of support from end-users has left the market in a precarious balance. Producers, concerned about negative margins, have announced potential reductions in production capacity, while service centers are being forced to adjust price lists to balance their accounts in the first quarter of the new year. This situation has created tension among industry players, who are approaching the start of 2025 with hesitation.
In the stainless steel market, a 26 percent decline in European consumption compared to pre-COVID levels weighs heavily on the future prospects. After months of downward pressure, prices appear to have bottomed out, but expectations for a recovery remain muted.
“November, too, remained on the sidelines, observing the global upheavals influencing the European economy and, more specifically, the Italian economy,” Assofermet Acciai stated regarding the spot market. A wait-and-see sentiment dominates in December, following a November that deepened the prevailing uncertainty.
In the tinplate segment, Assofermet Acciai noted that buyers are taking a cautious approach due to low demand for raw materials and the resulting sluggish price recovery. “This means that the anticipated three-digit price increases tend to settle at the lower end of the three-digit range,” the report stated. Additionally, EU quotas under the “China” Safeguard, as well as the smaller “Other Countries” quota, have already been exhausted. Assofermet expects “a spillover in early January customs clearances, resulting in pro-quota duty payments” for the latter.
