Italian distributors expect the market to recover in 2024

The beginning of this year does not see particularly favourable changes, as consumption is forecast to remain in line with the last months of 2023.

"The recovery in global economies and the end of interest rate hike policies are some of the elements that support the positive forecasts for the development of the market... While it is true that 2023 was worse than 2022, it is also true that the results exceeded the pessimistic expectations of 12 months ago," the association said.

For those involved in steel trading and distribution, the main trend in 2023 was a price decrease. While most of the decrease took place from the second quarter onwards, the market has stabilised prices in the last three months.

Last year was marked by uncertainty and lower margins for distributors, lower annual revenue and weak downstream consumption, which led to the drop in prices. The import ban on Russian steel and the rise in interest rates in Europe contributed to oversupply throughout the EU, Assofermet said.

The scrap market, which the Association forecasts to improve this year, recorded a similar situation of instability, reduced volumes and weak demand in 2023. In addition to international and geopolitical problems, the Italian steel market has been strongly affected by the crisis in the manufacturing industry in Germany, one of the main exit markets for Italian steel companies.