Assofermet Acciai: Italian market awakens amid protectionism, announced price hikes
In recent weeks, the Italian steel market has shown an unexpected revival, driven by the tightening of trade and economic protectionist measures.
Buying interest has returned significantly, with renewed dynamism both from end-users and from service centers specializing in carbon flat products, according to the market report dated November 6 from Assofermet, the association representing Italian companies involves in the trade, distribution and processing of steel, scrap and non-ferrous metals.
The upturn was mainly triggered by concerns over rising duties and the introduction of costs linked to the Carbon Border Adjustment Mechanism (CBAM), as well as by fears of stricter import quotas on raw materials. Many operators have therefore brought forward their purchases for the coming months in an effort to hedge against the price increases already announced by European mills. This behavior contributed to a temporary improvement in shipments during October, although early November has been marked by a slowdown in demand and a renewed sense of caution.
Overall, the situation remains complex. While rising prices are supporting producers’ margins, they also risk undermining the competitiveness of the European manufacturing industry – especially if trade barriers are not extended to finished or steel-intensive products. Without coordinated action at the EU level, Assofermet warns, there is a real risk of structural damage to the continent’s industrial base.
Meanwhile, European mills, backed by the existing customs barriers, are maintaining the announced price increases for deliveries scheduled in 2026, despite persistently weak demand. October closed with volumes below expectations and price levels insufficient to ensure satisfactory profitability, while domestic competition remains intense. However, the outlook for the coming months could mark a turning point, supported by the expected reduction in import volumes and by early purchasing activity driven by regulatory uncertainty.
In the stainless steel flat segment, the situation remains uneven: October recorded a modest recovery in long products, while difficulties persist for flats and tubulars. The construction sector is showing early signs of improvement, sustained by stronger demand for reinforcing bar and welded mesh, with prices gradually consolidating.
For ready-stock distributors, interest in European-origin material continues to grow, with domestic production now perceived as more competitive and stable than imports. Availability remains ample, yet some buyers are already reporting requests for slight price increases for 2026 – in line with the overall upward trend and within a still-weak but steady demand environment. As regards imports, pressure persists to ship volumes within the first half of next year, ahead of the enforcement of new, more restrictive safeguard measures.
In the tinplate segment, Assofermet highlights a steady increase in interest for EU-origin production, which is currently benefiting from greater stability and a competitive edge over imported material. Initial requests for slight price hikes in 2026 have already emerged, with availability expected to remain adequate thanks to the slowdown in domestic demand. At the same time, imports continue to push for deliveries within the first semester, in an effort to anticipate the entry into force of the upcoming European protection measures.
Overall, November appears likely to be a transitional phase for the steel sector: the combination of protectionist policies, environmental costs, and macroeconomic instability is reshaping purchasing strategies along the entire supply chain. Ahead of the industry fair in Maastricht scheduled for November 18–20, market participants see the coming weeks as a crucial period for discussion and assessment – to determine whether the recent rebound marks the beginning of a genuine trend reversal or merely a brief pause in an otherwise uncertain year for the European steel industry.
Assofermet calls for transitional measures under CBAM to protect manufacturing and steel sector
Following a recent meeting held with the Italian Ministry of Enterprises and Made in Italy (MIMIT), Assofermet, the association representing Italian companies in the trade, distribution and processing of steel and non-ferrous metals, has submitted to the relevant Italian ministries its latest proposals regarding the Carbon Border Adjustment Mechanism (CBAM), ahead of the upcoming amendments to EU Regulation 2023/956 scheduled by the European Commission for the fourth quarter of 2025.
As previously reported by SteelOrbis, the association had expressed concern over the potential impact of the CBAM on the steel and aluminum supply chain, particularly for small and medium-sized enterprises active in trade and processing. In its new document sent to the government, Assofermet calls for the introduction of transitional measures to safeguard importers and the downstream manufacturing industry, specifically with regard to the mandatory purchase of CBAM certificates, which will take effect on February 1, 2027.
Among its main requests, the association proposes a temporary exemption from the obligation for:
- imports of steel and aluminum cleared from January 1, 2026, before the publication of the definitive reference parameters (benchmarks and/or default values);
- imports cleared within five months following the publication of these parameters.
According to Assofermet, the current uncertainty caused by the absence of definitive benchmarks – expected to be published only in the course of 2026 – “forces importers to place orders blindly to prevent supply shortages and ensure continuity for their customers, with serious risks for the entire EU manufacturing sector.”
The association underlined that the proposed corrective measures do not affect the CBAM’s entry into force, but aim to ensure “a fair and sustainable implementation of the mechanism during its initial phase.” Assofermet also expressed its hope that the Italian government, through the involvement of the relevant ministries, “will act as a promoter in Europe of a realistic and pragmatic approach capable of protecting the environment, industry, and employment alike.”
Assofermet criticises EC CRC anti-dumping investigation
Italian steel distribution association Assofermet has expressed concern over the European Commission’s initiation of an anti-dumping (AD) investigation into cold-rolled coil (CRC) imports, alleging an insufficiency of domestic quality and supply of the products under investigation.
Assofermet “expresses strong disappointment and concern” in relation to the European Commission’s opening of the investigation last week, citing “higher quality standards” associated with relevant producers; downstream dependence on the targeted CRC imports; and existing overlaps with other trade instruments like the existing safeguard protections and anticipated impacts from the fiscal stage of the Carbon Border Adjustment Mechanism (CBAM) – effective from January.
The association condemns what it views as the progressively expanding, burdensome, and complex nature of the European steel trade defense framework, stating that compounding restrictions on European manufacturing’s access to international steel raw materials “significantly reduces the competitiveness of the Union’s manufacturing industry in international markets, with structurally negative impacts on both the economy and employment.”
Assofermet calls on the European Commission to take “a more balanced assessment” of the EU’s steel trade protection framework and its influence on the “stability of the industrial supply chains,” and at minimum exempt existing import flows with arrival before 2025’s end from any imposition of retroactive duties.
The anti-dumping investigation covers CRC imports from India, Japan, Turkey, Vietnam, and Taiwan, China and was prompted by complainant Eurofer on behalf of EU steel producers. Eurofer provided evidence that CRC imports have increased in both absolute volume and market share, alleging injury to the EU’s domestic industry. As part of its complaint, Eurofer highlighted relevant export controls imposed on raw materials used in CRC production processes, which are not accounted for in international export prices, indicating market distortion.
European producers have preferred to focus on steel products other than CRC due to the low domestic margins premising the Commission’s investigation, McCloskey understands from conversations with market participants, seeing producers instead prefer to process value-added hot-dip galvanized (HDG) steel straight from their hot-rolled coil (HRC) portfolio. This deprioritisation of CRC alleviates additional energy costs inherent to cold-rolling processes and allows mills to weight their allocations to stronger margin products, important in a time of crisis for the wider European steel sector and the role played by high energy costs.
Market participants expect that potential new AD measures could have a significant impact on European importers and the attractiveness of international CRC, as trade protection for CRC has traditionally been limited to safeguard provisions without heavy AD or anti-subsidisation exposure.
The European Commission committed to replacing the EU’s steel safeguard mechanism – expiring in 2026 as per WTO rules – earlier this year with a long-term protective instrument in its Steel and Metals Action Plan (SMAP), with early proposals now expected in the first half of October. Under the SMAP the Commission also relaxed the legal threshold for the initiation of trade defense investigations to a “threat of injury” to better facilitate more proactive trade defenses, and has launched import monitoring tools for the bloc’s imports.
The European Economic and Social Committee (EESC) – which advises the Commission via consultation with industry stakeholders – released its official opinion on the SMAP 18 September, generally supporting the Commission’s “step in the right direction” but emphasising “that immediate action is required.”
Part of the EESC’s recommendations to the Commission and most relevant to wider AD investigations, is for a more selective application of the ‘lesser duty’ rule, and the introduction of a ‘melted and poured’ element across EU trade defence measures to better shield EU industry from global overcapacities and circumventionary evasion of its steel trade protections.
Benjamin Steven Journalist, Steel
Assofermet urges effective EU response to US tariffs
Italian steel trade association Assofermet is warning that new EU policies in response to tensions with the United States could severely disrupt supply chains and weaken Europe’s manufacturing sector.
“After months of negotiations, the agreement reached between the EU and the US has not resolved the issue of tariffs on steel and aluminium, which have remained at 50% since 4 June … This situation risks generating a massive relocation of exports to Europe, putting pressure on the EU market,” Assofermet says in a note sent to Kallanish.
The association is renewing its appeal to Italian and European authorities to ensure that any new measures remain balanced, proportionate, and effective, protecting not only European steel producers but also downstream users. At stake, the association stresses, is the competitiveness of the European industry and its ability to remain integrated within global trade flows.
The debate on steel is focused on the replacement of the current safeguard system, set to expire at the end of June 2026. The European Commission is to propose a new, allegedly more balanced, trade defence instrument. Assofermet is instead suggesting a mechanism based on annual and quarterly quotas, not tied to specific exporting countries. Such a framework would better balance the protection of Europe’s steel producers with the need to guarantee sufficient supply for EU manufacturing.
The association warns that excessive import restrictions could have “devastating effects” on the European industry, already under strain from high energy costs and the introduction of the Carbon Border Adjustment Mechanism (CBAM).
Earlier this week, the association urged the European Commission to rethink the protectionist and environmental policies currently under discussion, underlining the necessity to ensure a balance between environmental goals, industrial resilience, and the protection of Europe’s metals and steel value chain. Without such a balance, the association warned, the EU risks undermining the competitiveness and sustainability of its own manufacturing base.
Natalia Capra France
Assofermet Acciai: September starts weak for Italian steel, with CBAM and US tariffs fueling uncertainty
In the July-August period, the Italian steel market recorded a partial recovery in purchase prices, which rekindled operators’ interest, albeit timidly. However, according to the latest monthly report from Assofermet Acciai, updated as of September 11, the sector faced strong difficulties in passing on the increase in coil costs to end customers, amid persistently weak demand and a widespread climate of uncertainty.
The September outlook shows substantial continuity with previous months, further aggravated by growing concerns related to the CBAM. Imports done during 2026 will be subject to the purchase of certificates as of February 2027. However, the European Commission has not yet disclosed the calculation basis needed to estimate the effective costs.
Additional uncertainty comes from US tariffs on steel and aluminium, which risk diverting volumes from the Far East to Europe, exacerbating the domestic oversupply. In this context, ahead of the new regulation that will replace the current safeguard measure in June 2026, Assofermet has already submitted several key points to the European Commission for consideration in the drafting phase.
July ended with reduced volumes and prices still at their lowest levels, while the first week of September showed no signs of recovery: demand remains below expectations and purchasing activity is limited, also due to high stock levels and very short production lead times.
For stainless flat products, July showed relative stability, with limited single-digit percentage movements, while in August some products, particularly cold-drawn tubes, attempted a modest upward push sufficient to support revenues. The construction sector remains more fragile, with rebar, welded mesh and related products continuing to show signs of weakness.
In the distribution segment, July recorded a trend similar to that of the previous year: stable prices allowed the market’s underlying direction to be assessed without sudden fluctuations, while August saw attempts at upward movement in some categories. September opened with a cautiously improving scenario, with moderately higher volumes and slight price increases in some segments, although the fragility of downstream demand remains evident.
According to Assofermet, the coming weeks will be decisive in shaping the trend for the final part of the year. The evolution of demand in key end-use sectors such as construction and automotive, together with inventory management, will be crucial in determining whether the market can consolidate the first signs of recovery or whether downward pressure from oversupply and international uncertainties will prevail.
Assofermet: steel demand-boosting measures needed in EU amid declining demand
Italian distributor and service center association Assofermet called May 13 for action to stimulate steel consumption across the European Union, as demand declines due to intense global competition and the urgent need for the industry to transition towards decarbonization.
“The EU steel Industry … is certainly experiencing one of the most significant historical moments due to the continuous growth of new generation sites in third countries capable of producing steel at lower cost … and is facing epochal challenges of transformation towards decarbonization that, not only should be recognized, but should be supported and backed by the European Commission with effective, rapid and concrete measures,” Assofermet said in a statement.
European manufacturers are finding it increasingly difficult to maintain their market position and produce steel at competitive prices, in particular with new generation steel production sites emerging in third countries. The decline not only threatens the steel industry itself but also jeopardizes the entire supply chain, including key sectors such as automotive, construction and infrastructure.
While the organization welcomed the EC’s Steel and Metals Action Plan as a necessary and important document signaling that Europe is ready to act to protect strategically important industries, it proposed several targeted measures aimed at boosting demand, including tax credits, non-repayable loans, and reduced VAT rates for steel products.
Echoing steel producers Assofermet advocated for the extension of the Carbon Border Adjustment Mechanism to cover certain steel-intensive finished products, which would help level the playing field for EU manufacturers against cheaper imports as well as introducing an obligation to favor the use of machinery, vehicles and products with high steel content produced in the EU in the bloc’s public procurement tenders.
Assofermet underlined the crucial role of end-users, as stimulating demand in sectors that rely heavily on steel would not only support Europe’s manufacturing base but also foster its economic growth.
In its proposal, the trade body outlined the need for a robust domestic supply chain, especially highlighted during crises like the COVID-19 pandemic, when the EU relied on imports to meet demand.
Platts assessed the southern European domestic hot-rolled coil price at Eur620/mt ($690/mt) EXW Italy on May 12, stable over the day.
EU steel consumption was expected to decline by 2.3% year on year in 2024 to 127 million mt due to the recession in the two major steel-consuming sectors, namely construction and automotive, European steel association Eurofer said in its latest report published in February.
EU protectionism to impact Italian quality coil procurement
Increasing European import restrictions pose a risk to the availability of specific coil grades and sizes that are not widely manufactured in Europe, Riccardo Benso, chief executive of coil service centre Albasider, told Kallanish during the Made in Steel tradeshow in Milan last week.
Certain high-quality products in Europe are priced at a premium and face limited availability. There are concerns regarding the willingness and capability of European mills to provide specific dimensions and qualities to small to mid-sized buyers.
“The rules imposed from above do not align with the needs of our complicated economic system. I’m concerned about the potential detrimental impact on quality,” said Benso, who is also a former president of Italian steel trade association Assofermet. “We had been around the world to select [coils] from the best origins; we formed partnerships that will have to be rethought, and now we will have to spend a lot of time researching new origins.”
“It is not certain that all new origins will offer the quality that our customers demand and, therefore, in my opinion, there will be an issue linked to the offer of high-end products that could, in any case, generate some perplexity among customers, some issues for the European industrial system,” he continued. “If Europe wants to be competitive on global markets, knowing that it has higher costs, it must in any case offer a product that has added value.”
Benso anticipates a transitional period will be required to adapt to the emerging protectionist landscape; however, he asserts that the downstream supply chain will implement appropriate countermeasures and successfully maintain equivalent quality standards.
The European Commission is currently revising the Carbon Border Adjustment Mechanism (CBAM). However, there is a significant risk the new framework may overlook the implications for Europe’s downstream and manufacturing sectors.
“Europe is a strong exporter … We excel at creating outstanding products and selling them, even if they are slightly pricier than others. We have to preserve our extraordinary ability to offer our products in global markets … We must pay attention to competitiveness variables, so we must not design a tool, CBAM, that only protects the upstream supply chain,” Benso noted.
Assofermet’s engagement with Europe and other steelmakers in the supply chain has improved, with collaboration beneficial to all parties. At the same time, the international trade war and the danger of US President Donald Trump’s tariffs are gradually easing.
“I am convinced that for him [Trump], the game has only just begun, and he will use it to bring as many parties as possible to the negotiating table. He has a strong vision for his country. During his presidency, he intends to do everything possible to restore the United States’ position, including an industrial one. I believe he has significantly underestimated the time and challenges associated with industrial restructuring that are required in the long run, to reallocate specific production once it has been dismantled and transferred,” Benso said.
He expects the market to require a period to absorb the existing overcapacity. The service centre sector is notably well-stocked. The current market conditions indicate an oversupply primarily in commodity grades; however, mills are reporting extended lead times for quality products and specific dimensions.
Despite subdued interest from service centres in acquiring coils, there are indications of a modest uptick in demand. Although automotive production remains subdued, the industry saw some improvement in the first quarter as car sales rose. Car component makers slightly increased their orders in Q1.
Benso anticipates a rebound in consumption in the upcoming year, with indications of a potential return of downstream demand emerging around September or October, following the summer period.
Natalia Capra France
Assofermet urges EU to support steel consumption and entire value chain
Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products has welcomed the European Union’s Action Plan on Steel and Metals, viewing it as an important signal in support of strategic industries. However, in a statement released this week, the association criticized the document for its lack of concreteness and detail, deeming it insufficient to resolve the deep crisis affecting the European steel industry, the primary cause of which is identified as the drastic decline in domestic steel demand.
According to Assofermet, the current plan focuses excessively on production, while entirely neglecting the downstream supply chain – comprising trade, distribution, processing, and end-use of steel – which constitutes the most extensive and strategic part of the industry. The entire European manufacturing sector, which heavily relies on steel, is now severely weakened by offshoring to third countries and by foreign competition, both in terms of price and quality, Assofermet said.
The transition of the sector toward decarbonization is recognized as necessary, but it must be accompanied by effective and immediate measures, the association argues. Assofermet highlights that companies in the supply chain, often SMEs (small and medium-sized enterprises), played a crucial role in ensuring steel supply during the post-Covid crisis, compensating for domestic shortages through imports from non-EU countries.
Assofermet therefore proposes a series of economic and fiscal measures to stimulate domestic steel demand and strengthen the entire industrial value chain, with the goal of preventing further declines in production and employment. These include:
- Tax credits for replacing obsolete machinery and equipment with new ones that have a high steel content.
- Non-repayable grants and low-interest loans for investments in plants and equipment by SMEs.
- Capital, operating, plant and interest subsidies to support the activities of businesses involved in steel usage.
Additionally, Assofermet calls for:
- The introduction of targeted tax incentives and a reduced VAT rate for products with a high content of steel produced in the EU.
- The inclusion of clauses in public procurement tenders that favor the use of EU-origin steel.
- The extension of the Carbon Border Adjustment Mechanism (CBAM) to certain finished products with high steel content.
- Protective trade measures against imports of steel-intensive goods from third countries.
Assofermet also considers it essential to implement a three-year emergency economic plan to revive European manufacturing and structurally stimulate steel consumption, in line with the EU budget resource use guidelines proposed by Mario Draghi.
The association identifies several priority sectors to be relaunched in order to boost demand: automotive, transport, construction, infrastructure, energy, mechanical engineering, home appliances, chemicals, and the food industry.
Finally, Assofermet warns that the current weakness in domestic demand, combined with shrinking distribution margins and excess production capacity, risks triggering a serious slowdown in EU manufacturing, transforming companies into mere importers and sparking a new wave of industrial offshoring.
Hence, the association makes an urgent appeal for coordinated industrial policies capable of reactivating internal demand, strengthening competitiveness, and opening a new phase of economic expansion for the entire European steel supply chain.
Assofermet: Italian steel market’s weak recovery in March disrupted by tariffs
March and the first days of April were characterized by strong uncertainty in the Italian steel market due to the introduction of import tariffs by the US. This is what emerges from the monthly analysis of Assofermet Acciai, the steel division of Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products.
Starting from flat products, Assofermet described an uptrend in March. The slight recovery of consumption, however, has been jeopardized by the possible outcome of a global trade war. Moreover, new EU safeguard policies – which hamper steel inflow into the territory – may divert import volumes, hence generating possible price increases. “Since they are dealing with low demand, we have yet to understand if finished steel users will be able to support such rises without losing competitiveness in the international market,” Assofermet stated. End-users’ sales volumes, in fact, are still suffering from the automotive and white goods crisis, and there are no signs of a possible recovery in the month of April.
In the stainless steel segment, both longs and flat products are experiencing low levels of demand. Offers, however, are still abundant and this keeps prices under pressure. Nonetheless, Assofermet reports weak signals of stabilization, which could suggest a gradual rebalance. The scenario is rather complicated, Assofermet concluded, but “it offers some ease for those who will be able to be resilient to the market’s evolutions”.
As for warehouses, March recorded a negative performance overall, with the exception of seamless pipes. Steel sheets, on the other hand, seem to be the most affected category. The prospects, unfortunately, are not bright: with the introduction of new tariffs by the United States, some sectors such as mechanics could decide to revise their investment plans by reducing the volumes purchased in the face of a foreseeable drop in turnover due to the reduction in exports.
Finally, in the tinplate segment, there was a recovery in demand in Europe due to the introduction of a 20 percent cap for each country in the “Other Countries” quota. “Some tin coating plants, which remained inactive throughout last year, are gradually returning to full operation,” Assofermet reported.
Assofermet sees slight recovery in March long volumes
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