Following a stagnation in August, both long and flat steel demand have not adequately rebounded. Distributors have reported a decrease in customer activities and significantly reduced margins.
End-users are opting to procure materials from the import market rather than the domestic market, primarily to mitigate costs. Notably, the prices of hot-rolled coils have fallen below €550 per tonne at the factory gate, indicating poor performance in this segment. This trend aligns with the observed decrease in both domestic and international coil prices.
A distributor indicated that they are considering attractive offers from suppliers in Türkiye and China, while similar expectations regarding price reductions are emerging in other EU countries. Currently, prices for long products, such as rebar and steel plate, remain stable, with rebar priced at €570 per tonne and steel plate at approximately €650 per tonne.
However, within the flat steel segment, distributors are experiencing inventory devaluation, leading to growing concerns regarding their financial outcomes. Market participants foresee no recovery in demand before the year's end, with scrap prices identified as the sole factor that could sustain elevated long product prices. Additionally, factory sources have highlighted ongoing financial difficulties and contracting profit margins. The future of Italy's distribution sector remains uncertain amidst these challenges.
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