Low Demand and Complex Market Dynamics Persist
The Italian and European steel markets are entering December 2024 under significant uncertainty, according to the monthly market report by Assofermet, an association representing Italian distributors of scrap, raw materials, and steel products. The report, cited by SteelOrbis, reflects concerns about market conditions as 2025 approaches.
November Market Challenges
Throughout November, the steel sector faced persistently low demand and challenging dynamics across mining and processing industries.
European flat product mills continued pushing for price increases, despite stagnant demand and weakening end-user sectors. This lack of consumer support left the market precariously balanced. In response, manufacturers, worried about negative profit margins, have hinted at potential production cuts. Meanwhile, service centers have been adjusting their price lists to mitigate financial pressures for the first quarter of 2025.
Outlook for 2025
The uncertainty surrounding pricing for 2025 is causing hesitation among buyers, as weak demand for basic materials persists. Many industry players are entering the new year with significant doubts, as the current demand levels provide little clarity on future price stability.
Global Hot-Rolled Coil Market Trends
The global hot-rolled coil market mirrored these challenges in November. While some regions saw modest price increases, low demand, economic instability, and competition from imported suppliers restrained market activity. Producers also struggled with weak consumption in key sectors and excess inventory levels.
Industry Sentiment
This combination of factors has created a tense environment for market participants, who remain cautious about the year ahead. With no clear resolution in sight, the steel sector faces an uncertain start to 2025.
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