Steel market and the current situation in Italy
Raw material costs are a crucial component that determines the final product price in the mold manufacturing industry, specifically in the production of molds for rubber and plastic molding. In Italy, where most of the required steel must be imported, fluctuations in the global steel market, and, in the short term, the instability caused by significant price volatility, directly impact the calculations of even the most experienced analysts. Greater market volatility obviously makes it more difficult to make reliable projections, even in the short term. This is why considering potential price fluctuations for by-products, such as secondary materials used in rubber molding (see the cost of metals for mold production), is crucial for business economics.
In this article, we are going to give you a (hopefully) clear and practical picture of the following points:
- the reasons for rising steel prices;
- how they affect the cost of a single mold;
- what all this means for production planning.
Why steel prices are volatile
Short answer: as far as the situation of the Italian market is concerned (aside from US isolationist policies and global geopolitical tension), it is a direct consequence of limited availability and a fragmented market.
According to data from Eurometal.net, in some areas of Italy, such as the North, supply is limited, while demand remains high (a consequence of a relatively growing GDP), which is creating a rush to build up supplies to meet demand. In early August, prices for domestically produced rebar rose to €600/t in the North and as high as €620/t in the South, with a regional difference of about €30/t. Despite a recent slowdown, if not a slight decline in September, the overall trend is still above-average prices.
Reduction in domestic production: In July 2025, Italian steel production decreased by 3.7% compared to the previous month, to 1.73 million tons (detailed article here). This consequently reduces domestic availability and makes Italy more dependent on imports.
Import prices under pressure: In Europe, despite the cost of rolled steel having fallen in recent weeks, the situation remains tense and prices are under constant pressure from external factors that can alter their trend, and the risk of volatility or short-term spikes is always around the corner.
How does this situation affect the production cost of a mold?
To explain how the increase in steel prices affects the cost of a mold, here is a practical example:
Average weight of a mold: let’s say 200 kg of steel.
Cost of steel (practical example): If we consider €600 per ton, this translates into an approximate cost of €0.60 per kilo.
The material cost will therefore be as follows: 200 kg × €0.60 = €120 for steel alone.
If in a month the price rises to €620/t, the same mold costs €124 in steel: an increase of €4, which may seem modest, but becomes significant if dozens or hundreds of molds are produced.
What does this mean for your production planning and how can you prevent unexpected events or price spikes?
Rule number one: Forecast and freeze costs
It’s helpful to monitor trends (such as those described above) and, when possible, it may be advantageous to freeze steel orders at lower prices for future periods. Even a small difference in a single mold can generate significant overall savings. Since our company operates according to a lean, just-in-time production approach (we work exclusively upon customers’ order, so we do not maintain inhouse steel inventories), it’s easier to try to calculate production volumes and internal demand of your company and, from there, calculate potential production needs, mold requirements, and their dimensions—for example, based on the types of presses in your machinery, or by forecasting production volumes, especially if you have the option of working with long-term contracts or subcontracts for the public sector.
Design and production optimization
In mold designs, evaluating solutions that use less steel or alternative materials can prove advantageous. Even small adjustments in tolerances, structure, or material quantity can reduce costs. This is where our expert advice and close collaboration with our clients’ technical departments typically come into play. As a trusted partner, we’re always at your side to ensure you make the best choices, including reducing processing and production costs.
Final considerations
So…You’ve invested time and resources in designing high-quality molds for important rubber and plastic applications. HHowever, steel, which is a key component of your mold, is currently experiencing significant price fluctuations in Italy as well in other countries.
OOur team of experts at Italian Form understands this context well: we monitor market trends, optimize material usage in your molds, and design with every possible cost-saving measure in mind, all while maintaining quality.
We are a trusted partner who can advise you on the best options to implement a strategy that suits your needs, including streamlined and reliable design, rapid delivery, and cost reductions that provide you with a significant competitive advantage. This is the added value, derived from a mindset that blends Swiss rigor and Italian craftsmanship to meet the demands of an increasingly competitive and challenging international market.
For further information or to discuss your next project, don’t hesitate to contact us directly: we’ll help you plan it efficiently, resulting in high-performance, cost-effective molds delivered on time.
Italian Form, where passion meets expertise and reliability.
