According to the latest monthly market report published by Assofermet on September 7, activity in the Italian steel market is gradually resuming after the summer break, although demand remains weak and the international situation has remained virtually unchanged since the end of July. Geopolitical tensions and persistently high energy prices continue to put pressure on market sentiment and steel consumption.
In the flat rolled products segment, European manufacturers are striving to establish a new upward trend in prices, which is supported by high energy costs and increased trade barriers restricting steel imports. However, Assofermet warns that it is becoming increasingly difficult for distributors and manufacturers involved in processing to pass on higher raw material costs to consumers without further reducing their competitiveness. Therefore, the association repeated its call for measures in the field of trade and environmental protection, if supported, and then extended to product processing, as well as primary steel production.
Attention also remains focused on the future of the Acciaierie d'Italia. Assofermet expressed concern about the decision of the Milan Court of Appeal, according to which production of finished products was suspended at the Taranto plant on October 28. The Association has asked the Italian Government to provide regular updates on the ongoing negotiations, given the strategic importance of the site for the entire steel supply chain in the country.
In the flat rolled stainless steel segment, July remained weak both in terms of supplies and prices. During the first half of the year, manufacturers managed to achieve significant price increases, which were facilitated by lower import availability, while distributors were only able to partially compensate for this increase, which led to lower margins. Final demand, however, remains low, keeping the overall market situation unstable.
In the warehouse segment, the period from July to August ended with a general increase in sales compared to the same period in 2025, despite a decrease in sales volumes. The improvement was mainly due to an increase in average unit prices, as well as new EU protective measures that came into force on July 1, while production volumes continued to decline due to weak demand for processing. Long products continued to be the weakest segment in physical terms, while hot-rolled flat products showed growth in both physical and value terms. The hollow profile segment is still experiencing difficulties.
Stainless steel also continues to experience difficulties, especially in the production of pipes and long products, while sheet steel has demonstrated better stability in value terms due to the recovery in average prices. In September, allowances for 304 and 316 grade alloys were also increased. According to Assofermet, the afternoon period will be an important test for the strategy of European factories to raise prices, as low consumption and increased inventories may make it difficult for the market to adapt to further price increases.
As for regulation, starting from October 1, importers will also have to document the country in which the imported steel was smelted and bottled. Assofermet noted that the outlook for the second half of this year as a whole turned out to be less negative than at the beginning of 2026, although the distribution margin remains under pressure. pressure, as well as uncertainty about the ability of processing plants to cope with the announced price increases.
Finally, the tomato processing season has started positively in the tinplate production segment, although it is expected that the availability of supplies under contracts will decrease in the coming months. As a result, the supply of metal packaging may increasingly turn to European manufacturers or alternative suppliers such as Turkey and India, as trade barriers continue to limit other supply options.
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