Uncertainty continues to loom across the flat steel market, with global production slowing except for in India and demand downstream still under pressure, Italian trade association Assofermet says in a market note seen by Kallanish.
Since the Made in Steel event in Milan earlier this month, the flats market has slowed due to the climate of uncertainty. “The market, lacking a clear direction … appears disoriented: on the one hand, European steel mills are reducing their plants’ capacity while maintaining a rigid commercial attitude, supported by growing protectionist measures; on the other hand, pressure from Far East producers is growing, characterised by subdued internal consumption and challenges in exporting to the United States,” the note states.
Although the tariff impact appears to be easing, there remain several factors of uncertainty that need to be addressed. May commenced with a subdued market, which created apprehension among market participants. The uncertainty surrounding the fire at the former Ilva plant in Taranto, now Acciaierie d’Italia, raises significant concerns regarding employment stability and the future productivity of the Taranto facility, the association notes.
It continues to monitor the development of European laws on trade restrictions and the low-emission steelmaking transition, it adds. Regulatory updates expected in the third and fourth quarters may represent a turning point in the second half of the year, the association concludes.
Natalia Capra France
