The Italian steel market remained disoriented during the month of May, generally marked by a crisis from which it is struggling to recover. Weakness was observed in all steel sectors, from scrap to finished products, according to the monthly market report published by Assofermet Acciai, the steel division of Assofermet, i.e., the association representing Italian distributors of scrap, raw materials, and steel products.
More precisely, the flat carbon steel products segment experienced a sluggish May, with negative sales volumes and a climate of distrust that had already emerged at the beginning of the month. Strong uncertainties and fears were growing among operators, given by ongoing trade and political tensions as well as the economic crisis that China is going through, bringing Far East markets with it. The weakening of sales volumes, and consequently prices, is also due to the CBAM (Carbon Border Adjustment Mechanism) coming into effect in Europe in 2026, which will impose significant cost increases for steel imports from non-EU countries.
On top of this, the European Union's trade barriers will limit imports, as the note reports, and some steel grades that are available only through imports might become unavailable in Europe.
Demand weakness was also highlighted in the stainless steel flats segment, in the wake of a downward April. The factors influencing this sector are those described, which highlight the lack of "a protectionist policy to defend the entire steel supply chain", Assofermet pointed out. This climate of uncertainty has been reflected in prices, the drop in which is thinning the margins of distributors who do not hide their concerns.
As for warehouses, sales declined in almost all product categories in May, with the exception of some niche products. Both longs and flats - although the latter were more stable than the former - showed contractions, while tubular prices recovered slightly.
Finally, uncertainty also affected the tin plate segment, which was characterized by a substantial expectation for the beginning of July, "when the impact on the market of customs clearance of the significant volumes of material imported from Turkey and India, currently lying in port terminals, will be clearer," the note reports. It is also worth mentioning that there was an increase in the supply of European material, which is unusual at this delicate time.