Italian steel distributors face weak demand despite rising prices

Italian steel distributors continue to face declining sales volumes and pressure on margins, despite higher prices from European producers. According to the latest market report published by industry association Assofermet on November 3, 2026, there are few indications of a recovery in steel demand before early 2027.

The association reports that weak manufacturing activity, high inventories and increasing operating costs are making it difficult for steel service centres to pass higher purchasing prices on to customers.

Carbon steel prices rise despite sluggish demand

European steelmakers have increased their quotations for deliveries in the final quarter of 2026 and are seeking further increases for the first quarter of 2027. Trade protection measures and reduced import availability are supporting this development.

However, Italian service centres report limited opportunities to raise selling prices. Although modest increases are expected in November, demand remains insufficient to sustain a broader price recovery.

Assofermet also expresses concern about the future of former Ilva steelmaker Acciaierie d'Italia. Uncertainty surrounding the Taranto plant and its possible restructuring raises questions about domestic steel supply, particularly as import restrictions tighten.

Stainless steel market remains under pressure

Demand for stainless flat products also remained weak in October. Stable scrap prices and declining nickel quotations have provided some cost relief, but elevated energy and distribution expenses continue to affect profitability.

Competition is particularly intense in standard stainless grades, including AISI 304.

Assofermet does not expect a significant improvement before the end of the first quarter of 2027 unless European production capacity is reduced.

Distribution volumes fall by more than 25%

In the stockholding distribution segment, total sales volumes declined by more than a quarter compared with October 2025, while sales value remained slightly above the previous year's level.

Long products experienced particularly pronounced declines, while flat steel sales decreased in both volume and value. Hollow sections performed comparatively better, with cold-formed products recording increases in both categories.

Stainless steel distribution weakened across tubular, long and flat products.

Tinplate prices expected to increase further

The tinplate market showed a different development. European prices continued to strengthen despite moderate demand and substantial inventories.

Higher costs for hot-rolled coil, tin and energy-related inputs, combined with reduced European supply and tighter import restrictions, are supporting further price increases.

Source and Photo: Assofermet