[SMM Stainless Steel Flash] Italian Steel Market Resumes Post-Summer, Stainless Demand Remains Weak

Ukrainian seamless stainless steel tube producer Centravis has received two orders totalling 50 mt for Motor Oil Hellas' refinery in Greece, with products to be used directly in refinery operations. The customer placed a second order shortly after the first delivery, signalling potential for further cooperation. Motor Oil Hellas is one of southeastern Europe's leading energy and refining companies, with its Corinth refinery forming Greece's largest privately owned industrial complex and regarded as one of Europe's most modern refineries. Centravis Sales Director Artem Atanasov noted that the refining industry demands particularly high standards of tube quality, steel grades, and technical compliance, describing the project as an important European market reference, with the repeat order reflecting strong customer confidence.

India's Jindal Stainless (JSL) announced on September 7 the signing of an agreement with Japan's JFE Steel to strengthen its manufacturing capabilities for select ferritic stainless steel grades. Under the pact, JFE Steel will leverage its decades of ferritic stainless steel expertise to support JSL in improving product quality and manufacturing practices for the specified grades. Ferritic stainless steel is widely used in automotive components, railway coaches, kitchen equipment, industrial machinery, and construction — making it an important high-value growth segment. JSL Managing Director Abhyuday Jindal said the partnership aims to build capabilities that create greater value for customers by strengthening people, processes, and practices. The agreement comes as global stainless steel demand continues to rise across automotive, infrastructure, railways, and process industries.

Posco Assan TST CEO Ji Seob Choi outlined several key views on the stainless steel industry: global production has outpaced demand growth, creating a significant cost-price imbalance pressuring producers, with a seasonal demand and price recovery broadly expected from September through year-end 2026. On trade policy, EU quotas directly impact Turkish exports while rising global protectionism is redirecting low-priced material unable to enter EU and US markets toward more open markets such as Turkey, increasing trade diversion risks; the December 2025 anti-dumping measures on Chinese cold-rolled stainless steel are viewed positively, though single-country measures alone cannot resolve broader industry imbalances. On financing, high per-tonne costs make the sector capital-intensive, with elevated financing costs and shorter customer order cycles pressuring cash flow across the supply chain. For the remainder of 2026, a gradual recovery in Turkish market activity is expected, supported by inventory normalization, deferred demand realization, and potential demand from export-oriented industries.