The Italian steel distribution sector has reported a downturn in the second quarter, with a significant decrease in demand for both long and flat steel products. This slump comes during what is traditionally a strong period for the industry, characterized by higher profit margins and sales volumes. The month of May already showed signs of a disappointing performance, but it was June that marked a particularly disastrous period for sales and margins.
One distributor noted a 30% decline in turnover for the quarter, while another reported that volumes had halved compared to the previous year. Specific products like welded tube and merchant bar were particularly hard hit, with sales dropping to just a quarter of the usual tonnage. Despite the current market conditions, distributors are working to maintain healthy stock levels and offer a diverse range of products to meet customer needs in terms of grades and dimensions.
Prices for drawing-quality wire rod are currently ranging between €620-630 per tonne delivered, with rebar and merchant bar prices hovering around €600-630 per tonne ex-works and approximately €700 per tonne delivered.
