There have been signs of recovery in the volumes of merchant bars products and sections in recent weeks due to new construction projects commencing in March with the start of favourable weather conditions, Italian trade association Assofermet says in a market note seen by Kallanish.
Conversely, last month flat products experienced a modest downturn in both volumes and pricing.
“We are witnessing a market downstream that, due to global geopolitical tensions, is struggling to recover,” the note states.
It adds that in February, the automotive, household appliance and construction sectors recorded a sharp slowdown. However, in March there were timid signs of recovery, fuelled by the interest of several companies in covering their flat needs for the coming months with scheduled supplies.
“We look with great interest at the strategic dialogue on steel recently promoted by the EU Commission and we hope to be able to give our contribution as representatives of the pre-processing and distribution sectors on the national territory. We really hope that attention will also be focused on the problems of EU manufacturing, because without orders from it the steel industry is also destined to collapse,” Assofermet warns.
“Effective countermeasures to the ongoing industrial delocalisation must be adopted as soon as possible, with measures to stimulate demand, while slowing down the unbridled rush to green production, extending deadlines and reviewing programmes,” it adds.
In a recently released position paper on US president Donald Trump’s enhanced protectionist policies the association warned that the trade war could potentially lead to significant market distortions for Europe. The execution of US policies is expected to lead to an redirection of global steel exports to the European Union, potentially prompting the bloc to consider countermeasures aimed at Asian countries.
Assofermet proposes rethinking the existing EU protection mechanism and extending it downstream. Currently, Europe is focusing its defensive strategies solely on safeguarding the upstream segment of the supply chain.
Natalia Capra France
