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, the Italian steel market continues to experience very weak demand, while cost pressure remains high due to rising fuel, energy and logistics costs. The association also stressed that the war with Iran and US protectionist policies continue to increase uncertainty throughout the supply chain.
In the carbon sheet steel segment, Assofermet said service centers are entering the second quarter with a limited order book after a first quarter marked by sharp declines in volumes. According to the association, the combined effect of CBAM, anti-dumping duties and new safeguards expected to take effect on July 1, 2026, continues to restrain imports, shifting demand towards European suppliers and strengthening their ability to achieve further price increases despite persistently weak demand from end consumers. At the same time, problems with supplies from abroad continue with the risk of reduced availability of grades traditionally supplied from import markets.
In the flat stainless steel segment, March ended with demand considered satisfactory compared to previous months, also taking into account price increases expected in the second quarter, mainly due to higher scrap costs and energy. Assofermet noted that the market has so far experienced an initial price increase of about 10 percent compared to the beginning of the year, although the distribution segment is already signaling further gradual price increases in the coming months. However, the sustainability of end-user demand remains critical as it will largely determine the market's ability to accept the new price level without undermining customer competitiveness.
The inventory segment saw another slowdown in March, with processing volumes declining across most product categories. The weakness affected both flat and long steel products, while stainless steel saw a slowdown, especially in tubulars and process products. According to Assofermet, distributors continue to operate under extreme caution: orders are limited to strictly necessary volumes, and restocking is not carried out. In this scenario, prices may remain stable or high due to pressure on production, which could have negative consequences for traders' profits.
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