Assofermet, representing Italian scrap, raw materials, and steel distributors, reflects on a challenging 2023 marked by steel margin reductions. Hardware, however, maintained stability. While 2024 opens with cautious optimism, global political and economic influences persist. Price drops in steel, influenced by reduced downstream market consumption and EU oversupply, characterize 2023. Ferrous scrap faces instability amid volume reductions and demand scarcity, with 2024 prospects mirroring recent challenges.
The closing chapters of 2023 brought a nuanced tale for the sectors under Assofermet's purview, the association representing Italian distributors of scrap, raw materials, and steel products. A predominant trend of margin reduction in steel and metal trading companies defined the year, with a silver lining of stability in the hardware domain. However, as the curtains rise on 2024, a sense of cautious optimism permeates the landscape, although global political and economic phenomena continue to exert their influence.
In the steel sector, 2023 unfolded with a noticeable decline in prices, reaching its nadir in the second quarter, followed by a phase of stabilization in subsequent months. The reduction in consumption in downstream markets played a pivotal role in steering this trend. Simultaneously, import bans on the Russian market and the European Central Bank's interest rate hikes contributed to an oversupply within the European Union. While the political-economic context displays signs of improvement, the stainless steel segment grapples with more intricate challenges. However, the prospects for 2024 carry a tinge of optimism, fueled by the ameliorating global economic conditions and the cessation of the policy of interest rate hikes.
In the ferrous scrap sector, 2023 was characterized by instability, volume contractions, and a dearth of demand. The manufacturing crisis in Germany and circulation restrictions imposed by the European Union further compounded challenges. Despite a seemingly bleak 2023 compared to the previous year, the results managed to surpass pessimistic predictions made a year ago. As the curtain rises on 2024, the prospects are not particularly bright, aligning with the patterns observed in recent months.
Assofermet's sectors navigated a complex landscape in 2023, witnessing steel margin reductions and contrasting stability in hardware. The onset of 2024 carries a cautious optimism, although global political and economic influences persist. Steel faced challenges with price declines influenced by consumption reductions and EU oversupply. The ferrous scrap sector grappled with instability and demand scarcity. Despite the challenges, results surpassed earlier pessimistic predictions, offering a nuanced outlook for the beginning of 2024.