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.
ArcelorMittal to introduce its latest generation of electrical steels
ArcelorMittal has announced that its subsidiary ArcelorMittal Europe – Flat Products is set to showcase its latest generation of electrical steels and a brand-new tailor-made services package at Coiltech Italia 2025 on September 17-18 in Italy.
With e-mobility and industrial applications growing rapidly, ArcelorMittal is reinforcing its market leadership through product innovation, expanded capacity, and advanced customer support services.
ArcelorMittal will highlight its upgraded non-oriented electrical steels, notably its upgraded high polarization grades, self-bonding varnish coating solutions and its latest low-loss iCARe® 420Save grades. The next generation of iCARe 420Save grades is scheduled to come onstream in 2026, extending to 0.2 mm gauge and combining the lowest magnetic losses with high strength.
Charlotte Daugu, sales director of electrical steels, ArcelorMittal Europe – Flat Products, said, “The upcoming launch of our new electrical steels plant at Mardyck in France, alongside our existing Saint-Chély-d’Apcher facility, will significantly increase our electrical steels production capacity.” The new electrical steel lines at Mardyck will annually produce 170,000 mt of non-oriented electrical steel.
Assofermet: EU should extend safeguards to downstream market
The trade war initiated by the Trump administration could potentially lead to significant market distortions for Europe, Italian steel trade association Assofermet states in its recently released position paper on US president Donald Trump’s enhanced protectionist policies.
The report obtained by Kallanish expresses concerns about the potential short, medium, and long-term effects of the US’s protectionist stance. The execution of US policies is expected to lead to an important redirection of global steel exports to the European Union, potentially prompting the EU to consider countermeasures aimed at Asian countries.
“A similar scenario, which already occurred in 2018, could have particularly serious consequences, since the delicate European economic balance is no longer able to sustain further [domestic] price increases, without risking a further and irreversible loss of competitiveness,” Assofermet warns.
“The part of the economy most at risk is therefore… the EU manufacturing industry that regularly uses steel… in its production. If we continue to protect only the upstream sector, triggering inflationary scenarios…we will continue to destroy the domestic EU market demand as well as exports of EU finished products,” it adds.
It proposes rethinking the existing protection mechanism and extending it downstream. Currently, Europe is focusing its defensive strategies solely on safeguarding the upstream segment of the supply chain.
The US ranks as the second largest export market for European steel producers, representing 16% of total steel exports in 2024. Europe primarily exports premium steel products to the United States that are not produced on the American soil, distinguished by very high costs and performance.
“Consequently, the application of import duties could be easily absorbed by the importer,” the paper suggests.
The ramifications of these tariffs on Europe may result in a notable reduction in EU exports to the US. This could subsequently diminish the demand for raw materials such as scrap and pig iron from mills that might face challenges in finding alternative export markets.
Production levels in the EU are anticipated to decline and the region may need to extend its safeguard measures and anti-dumping duties on imports from the US. The cessation of steel exports from non-EU countries to the US could result in a substantial influx of these materials into the EU, which may lead to considerable market distortions.
In reaction to the US tariffs, it is also plausible that some steel manufacturers in the EU will consider relocating their production operations to the United States.
Natalia Capra France
