Italy

In recent times, it has become increasingly difficult to offer a market outlook as even the most pessimistic forecast is surpassed by subsequent events. Summer closures have now postponed until September any hopes of a slight recovery in both prices and stainless steel mills’ consumption.

Seasonal company shuts have arrived at a time of global political uncertainty, heightened by the effects of US tariffs. Prices have continued to fall amid weak European demand, with no immediate prospect of a trend reversal. Another factor creating much uncertainty is the date for the introduction of the Carbon Border Adjustment Mechanism which, when combined with the reduction in industrial production, has generated a sharp decline in scrap consumption.

The downward spiral has affected all operators. The collapse in the scrap price in a bid to be competitive with slabs and nickel pig iron has led buyers to ask stainless steel mills for a reduction in their coil prices. Mills are willing to drop prices to grab new business and so the customer is holding off from placing an order until he or she is convinced that the offer price is as low as it will go.

The sales market is holding up well for cold-rolled products but is suffering for everything related to hot-rolled coils.