September is a month of cautious recovery for flat products, with distributor volumes showing moderate growth and prices edging higher for certain products, says Italian steel trade association, Assofermet.
Inventory management and demand in end-use sectors, particularly construction and automotive, “will be decisive factors”, the association states in its recent market note seen by Kallanish.
International uncertainty remains high. If clarification on tariffs has reduced some ambiguity, it has also confirmed the significant impact of US duties on the Italian steel market. “This situation is generating a domestic supply surplus, with the risk of further price compression, especially in standard products,” the note adds.
September shows continuity with the pre-summer market for Italian coil service centres, but the situation it is aggravated by increasing concern over the cost impact of the Carbon Border Adjustment Mechanism (CBAM).
At present the European Commission has yet to provide a clear calculation method to determine the CBAM cost for each individual import transaction. In anticipation of the new regulation set to replace the current safeguard measure expiring in June 2026, Assofermet has already flagged to the European Commission a series of critical points that must be taken into account during the study phase.
In the July-August period, service centre sales were supported by the partial rebound in coil prices, which revived buyers’ interest throughout the value chain. However, the sector faced significant challenges in passing on the higher coil costs to customers and encountered persistently weak downstream demand and a widespread climate of mistrust and cautiousness.
Natalia Capra France
