Assofermet highlights concerns over the implications of the amended EU safeguard measures, particularly on the availability of hot rolled coil. The association warns of potential supply disruptions and stock inadequacies, anticipating price hikes from EU producers due to constrained import capacities. This scenario poses a significant challenge for service centres striving to meet end-user demands while managing increased costs.
Looking ahead, EU steel mills are planning extensive production shutdowns in August, which Assofermet anticipates will heavily impact downstream segments. Despite stagnant overall demand, service centres are compelled to accept higher steel prices to sustain operations and fulfill existing orders, potentially compromising their competitiveness in international markets.
In the distribution segment, market conditions remain subdued with low visibility, although flat product volumes have stabilized while beams are experiencing a modest uptick. This divergence underscores the sector's uneven recovery prospects amidst fluctuating steel prices.
July presents further challenges with anticipated supply shortages due to scheduled steel mill closures, further complicating market dynamics and pricing stability. Assofermet's analysis underscores the fragile balance service centres navigate amid volatile market conditions, emphasizing the sector's resilience and adaptability in responding to ongoing challenges.
