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| Assofermet |
May Sees Sluggish Sales Across Scrap, Flats, and Stainless Segments
Italy’s steel market struggled through May, reflecting a broader European malaise shaped by economic anxiety and incoming regulations. According to Assofermet Acciai, the steel division of Assofermet, nearly every sector—from ferrous scrap to finished long and flat products—suffered from declining sales, margin pressure, and growing operator unease.
Flat carbon steel products were hit hardest. Sales volumes slumped, weighed down by weak sentiment and mounting geopolitical risks, especially from China’s economic slowdown. European market players reported a crisis of confidence, which began in early May and deepened as macroeconomic instability continued across the Far East.
CBAM and Trade Barriers Stoke Market Distortions
The upcoming Carbon Border Adjustment Mechanism (CBAM), set to be fully implemented in 2026, is already reshaping buying patterns. Market participants fear the mechanism will significantly raise the cost of imported steel from non-EU sources. Assofermet warned that certain grades, currently available only through imports, may disappear from the European market altogether due to new trade constraints.
This regulatory uncertainty compounds the effects of already limited import flexibility. The combination of CBAM and the EU’s safeguard measures is increasing volatility, especially for distributors reliant on cost-sensitive international supply chains. While tubular product prices saw slight gains, most categories—including longs and stainless flats—continued to weaken.
Tinplate Market Waits on Customs Clearances in July
The tinplate segment was marked by stalled activity and anticipation. Industry players await July to assess the impact of incoming volumes from Turkey and India, currently held in port terminals. This influx could significantly shift market dynamics. At the same time, Assofermet noted an unusual uptick in the availability of European tinplate—a surprising development given the sector’s fragile fundamentals.
Meanwhile, inventory drawdowns continued across warehouses, with only niche product categories resisting the downward trend. Overall, distributors are facing shrinking margins and remain concerned about the absence of a unified European strategy to safeguard the steel supply chain.
ScrapInsight Editorial Commentary
The Italian market’s volatility highlights the growing collision between climate policy, trade constraints, and industrial competitiveness. With CBAM set to reshape import economics, EU-based stakeholders must prepare for a more protectionist and high-cost environment. Without targeted support for distributors and processors, Europe risks eroding supply chain flexibility in a time of global uncertainty.
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