Assofermet: Italian steel market faces uncertainty amid global crises, weak demand

10 September, 2024 by
Administrator

In its usual monthly market report, Assofermet Acciai - the association representing Italian distributors of scrap, raw materials, and steel products - outlines a picture of uncertainty and difficulties for the Italian steel market in September 2024. The resumption of activities after the summer break has not brought major surprises. Demand, already weak in spring and summer, has further deteriorated due to the economic crisis in China and worrying data from Europe. Although Italy's GDP remains positive, Germany's stagnation is a cause for concern. However, there are hopes for a future reduction in interest rates, which could stimulate demand. 

In July, sales contracted less than expected, with cold rolled products performing better than hot rolled products. In August, however, many companies remained closed, negatively impacting production. Global steel prices have fallen, and Assofermet fears that the EU's proposed antidumping duties on steel exporting countries could increase costs and reduce competitiveness: "We express great concern about the potential consequences of the EU Commission's short-sighted trade defense policy in light of the recent investigation notification by EUROFER, for the introduction of antidumping duties on hot rolled coils from countries such as Japan, Vietnam, Egypt and India. The first three are already penalized by the 15 percent cap imposed by the safeguard measure," Assofermet stated, adding, "The higher costs that importers will inevitably face will be passed on to final customers, manufacturers of components and products, further undermining their already precarious competitiveness in international markets."

In the stainless steel sector, demand remains low and the market is uncertain, with bearish signals also for scrap. In September, increased pressure on European supply is expected, with Spain returning to full production capacity.

Overall, the steel sector continues to show weakness, particularly in construction. Internationally, geopolitical tensions and the upcoming elections in the United States could further impact the economy and the steel industry.

In the tinplate segment, some European companies report a reduction in production quotas, leading to increased demand to replenish stock levels.

Read more: EU scrap market balance

Vietnam Steel by Hoa Sen Group

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