Market sentiment in the flat steel segment is not entirely negative, says Italian steel trade association Assofermet. A potential rebound from current low price levels cannot be ruled out in the coming weeks, supported by expectations surrounding Carbon Border Adjustment Mechanism (CBAM) implementation and mounting cost pressure on steel producers.
However, distributors and first-stage processors continue to face significant challenges, as declining demand coincides with rising production and logistics costs. At the same time, the market remains under strong pressure from Far East producers, the association says in its most recent note sent to Kallanish.
“Geopolitical tensions, the slowdown of the Chinese economy, and US protectionist policies continue to weigh on the economic climate, hindering any potential recovery in demand across Europe. Adding to these challenges are the effects of controversial EU environmental policies, which are having a negative impact on several steel-consuming sectors,” the note says.
Carbon tubes and plates have shown signs of recovery, helping to offset the continued weakness in stainless steel within the same product categories. In the long products segment, the decline in merchant bar has been offset by a solid performance in beams, keeping the segment relatively stable. “The current context gives the impression of a potential turning point,” Assofermet notes.
At the international level, although major conflicts remain unresolved, some mixed signals are emerging that suggest a potential path towards diplomatic solutions.
Natalia Capra France
