As a result, the steel industry faces significant difficulties in the medium term. Due to the competitive offers from other countries, consumers are turning to imports of long products more frequently. Italian steel producers cannot compete with cheap imports due to high production costs.
Many sectors, especially construction, are seeing a slowdown in consumption.
The French Building Federation reports slow activity in the first quarter and calls the situation a "disaster". This poses significant obstacles for the sector and necessitates quick action and solutions.
Steel producers face additional difficulties on top of lower import prices and low consumption. The high cost of energy and scrap significantly raises production expenses, further enlarging the gap between production costs and market prices.
It is anticipated that the inevitable reduction in production in the upcoming weeks will result in some stock recovery, but without a genuine recovery in consumption, this increase may only provide the market with temporary solace.
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