Assofermet: Italian steel market remains under pressure amid weak demand

Italy’s steel market continued to face weak demand and growing uncertainty in April, according to the latest market note published by Assofermet Acciai.

The association said sales volumes and values declined across large parts of the market compared with April 2025, as customers continued to purchase only material required for confirmed orders, with little appetite for stock rebuilding.

Flat steel service centres face margin pressure

In the carbon flat steel segment, distributors and service centres remain under pressure from rising purchase costs and trade restrictions. According to Assofermet, European steelmakers have so far managed to support prices mainly through trade barriers rather than through a genuine recovery in demand.

The upcoming EU safeguard measures, including the doubling of duties for imports exceeding tariff-rate quotas from July 1, are adding further uncertainty to the market.

At the same time, the association warned of increasing difficulties in sourcing certain steel grades within the EU market, which had previously been supplied through regular imports that are now heavily disrupted.

Despite weak volumes, service centres may recover part of their margins in May due to higher selling prices linked to increased procurement costs.

EUROMETAL initiative gains support

Assofermet also highlighted the recent EUROMETAL “Call to Action”, which has already been signed by more than 400 associations and companies across Europe.

The initiative urges EU member states and the European Commission to defend the European steel and metals industry against deindustrialisation risks linked to unfair competition, high energy costs and growing global trade tensions.

Among the measures proposed are the extension of tariffs and CBAM to downstream and steel-intensive products, stronger “Made in EU” requirements in public procurement and lower energy and administrative costs to restore industrial competitiveness.

Stainless steel market weakens further

Italy’s stainless steel market also slowed further in April, partly due to the conflict in Iran, which disrupted exports of European finished products to Gulf markets and sharply increased energy costs.

Despite weak demand, stainless flat steel prices continued to rise, supported by significantly lower import volumes, allowing European producers to maintain elevated price levels.

Assofermet expects distributors to raise selling prices further in order to offset increasing costs for coils, transport, energy and packaging.

Weakness across most steel segments

The broader Italian steel market remained subdued across most product categories.

Long products recorded declining volumes and values, reflecting continued weakness in the automotive sector and reduced industrial investment. Flat products also saw lower volumes, although partially compensated by higher average selling prices.

In hollow sections, hot rolled tubes benefited from a limited number of specific supply projects, while cold formed products continued to weaken due to sluggish manufacturing activity.

Stainless steel products remained among the weakest-performing segments. Stainless tubes and long products both recorded significant declines, while only selected sheet and plate products linked to the food and pharmaceutical industries showed relative resilience.

Market waiting for July and August decisions

Looking ahead, Assofermet expects the market to remain cautious at least until two key dates: July 1, when the new EU safeguard measures enter into force, and August 1, the deadline for ongoing trade negotiations between the United States and the European Union.

The association also noted that the CBAM mechanism, now fully operational since the beginning of 2026, is increasingly influencing purchasing strategies and competitive positioning within the European steel market.