Assofermet: Some Italian service centres restock amid uncertainty

Market uncertainty continues in June for Italian service centres amid weak steel demand, Italian steel trade association Assofermet says in its market note sent to Kallanish.

May ended with a “considerable decrease in order intake”, the association notes. Timid signs of improvement are seemingly coming from some end-user sectors. Expecting price increases on flat products, some are restocking to cover their needs for future months.

The EU’s safeguard quota amendment is however adding concern to the weak consumption issue. The European Commission has proposed to extend the EU safeguard measure on steel by a further two years to June 2026. It will also introduce a 15% cap per origin over the “other country” tariff-rate quota for hot rolled coil, to ensure market stability and avoid crowding out traditional suppliers.

The result is that “the annual quota of about 3.9 million tonnes risks being halved … The repercussions, easily imaginable, could deal a severe blow to the European manufacturing industry, which is already grappling with a strong consumption crisis, according to Assofermet.

Natalia Capra France

kallanish.com