May has seen a continued decline in demand in the Italian stainless flat steel market, participants tell Kallanish.
The performance of the coil, tube and sheet markets indicates a persistent state of low sales volumes and pricing pressure. Organisations are indicating reduced order volumes, quicker lead times, and a generally pessimistic forecast. Downstream companies are experiencing significant financial difficulties.
“It is quite challenging to avoid operating in the negative [margins],” states a service centre representative.
Northern European service centres share this view. Prices are falling faster in Italy than in northern Europe, making the situation graver. In comparison to northern European coil and sheet, Italian pricing is approximately €30-50/tonne ($33-56/t) lower.
“Today, we cannot cover costs as we’re receiving cold rolled coils at €2,400/t and over,” the Italian service centre source comments.
A local stainless steel processor notes the substantial supply across the value chain in contrast to the notably weak demand for flat products. The influx of Asian coil being received in the upcoming weeks is likely to exert additional pressure on stock levels and reduce buying of domestic coil.
CRC prices in Italy are at an average of €2,300/t delivered. Steel processors are currently receiving CRC previously bought at a price of €2,400/t delivered and are selling sheet within the range of €2,500-2,550/t.
Hot rolled coil with rough edges is currently set at €2,100/t delivered.
“The market is compromised until August,” the steel processor believes.
Meanwhile, a European mill source also expresses a negative outlook but anticipates that in the latter half of 2025, the market may see fewer imports, due to the start of CBAM on 1 January 2026.
He sees higher stock levels, particularly in Italy. Declining profitability and decreasing prices are hindering processors’ ability to protect the value of their inventory. The Italian processors and mill source note that prices are stable in China and agree that Europe should see some improvement by September or October.
According to Italian steel trade association Assofermet’s latest market note, the oversupply is hindering the anticipated recovery in price levels.
“The limited lead times observed among European producers indicate a lack of depth in their order books. The first-quarter financial results from the main continental producers indicate negative results, which further restricts the potential for price reductions, even in light of the market’s current weakness,” it states.
Mills in Europe are decreasing their prices for June and July delivery. From the high point of the range recorded recently, EU stainless coil values have experienced a decline of over €100/t, while order books continue to face significant pressure (see Kallanish 20 May).
Natalia Capra France
