Carbon flat rolled products service centers are facing a low order portfolio, but are looking forward to the summer recovery
In the carbon flat rolled products segment, the recycling market continues to show structural weakness. Rare exceptions are represented by the shipbuilding sector, defense, energy (especially renewable energy sources) and some industrial niches. In recent weeks, European steel mills have registered a slight decrease in their price lists. This reduction was immediately spread and reinforced by the service centers in an attempt to collect orders and replenish the still insufficient order portfolio.
However, according to Assofermet, this bearish trend seems incompatible with the future European regulatory framework. The imminent entry into force of new EU protective measures on July 1, characterized by a significant tightening of import quotas and a doubling of non-quota duties, combined with CBAM restrictions and existing anti-dumping measures, will sharply reduce procurement opportunities from non-EU countries.
Although these restrictions do not directly affect consumption, they will strengthen the bargaining power of steel producers in the EU. For this reason, it is reasonable to expect that during the summer months, inventory reductions and the need for new purchases will help reverse the trend, pushing prices back to significantly higher levels.
Stainless steel sales volumes to collapse in May
For service centers specializing in stainless steel, the scenario is exactly the opposite: May noted a noticeable slowdown in real demand, with volumes falling by 15-20 percent compared to previous periods. months.
As the extraordinary factors that artificially supported prices during the first four months of the year disappeared, the structural weaknesses of the sector emerged. The profitability of distribution and processing companies is currently under serious pressure due to difficult-to-manage corporate costs, stagnating demand, and strong competitive pressures. Currently, the association does not foresee specific signs of recovery in the coming months, noting: "Therefore, the market
