The Italian steel market remained weak in February, broadly in line with the trend observed in January, amid supply chain caution, according to the latest monthly market report published by Assofermet, the association representing Italian companies involved in the trading, distribution and processing of steel, scrap and non-ferrous metals.
In the carbon sheet steel segment, interest in purchasing coils from service centers remained limited while end users continued to purchase only to meet immediate needs. Market sentiment was largely weighed down by operational difficulties and regulatory uncertainty associated with the Carbon Border Adjustment Mechanism (CBAM) and the upcoming entry into force of the new EU safeguard measure. In particular, the use of country defaults for CBAM calculations is seen as economically unviable and makes it difficult to reach sustainable agreements with non-EU suppliers.
Assofermet also noted that the new safeguard regime, with lower quotas and higher duties on out-of-quota volumes, together with the extension of anti-dumping duties on cold-rolled coils, will lead to a structural increase in the cost of imported steel in Europe. This strengthens the price position of European producers, but also raises concerns about the ability of EU production to absorb higher costs without losing competitiveness.
The stainless steel segment saw a further increase in selling prices in February,
