The Italian stainless steel sector is facing difficult times due to economic uncertainty and low demand. Assofermet (Italy's local steel trade association) reports that margins and volumes in the sector are going down. In addition to low demand, the increase in processing costs is also directly affecting the sector.
Alessandro Bettuzzi, coordinator of Assofermet's stainless steel service center division, says that the situation in the sector is being shaped by high inventory levels and rising operating costs, and that these factors are preventing prices from recovering. This situation has deteriorated over the past 3 months, a period that has coincided with the worst margin contraction in the industry.
For steel producers, the first half of 2023 seems to have been quite positive, but steel users face a unstable situation due to difficult planning and scheduling conditions. The association points out the threat of two parallel markets created by green steel and decarbonization: a high-end market of products driven by sustainability policies and a more affordable consumer market.
Italy's stainless steel market has experienced a significant recession since the beginning of this year. This, together with the uncertainty in the industry and the decline in demand, has had a negative impact on Italy's stainless steel demand.
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