Ecomondo 2025: European steel industry between climate challenge and economic sustainability
Decarbonization, energy and raw materials were at the heart of debates in Rimini at Ecomondo 2025, a leading international event dedicated to the green and circular economy.
Participants heard that the race toward low-emission steel continues, but challenges remain over costs, technology and regulatory stability.
The transformation of the European steel industry toward low-CO₂ production represents one of the most complex turning points in the continent’s industrial transition. During one of the conferences held at Ecomondo 2025, experts, analysts and industry representatives reviewed the progress toward a decarbonized steel sector, discussing its challenges, targets, and economic implications. Producing green steel means not only reducing environmental impact, but also fundamentally rethinking the entire production framework – from technology and energy supply to financial and market models.
The global map of decarbonization
The discussion highlighted how the race toward climate neutrality has now become a global process. More than 80 percent of the world’s steel production comes from countries that have already set net-zero targets, with Europe and East Asia taking a leading role. The European Union aims for carbon neutrality by 2050, while the United States, Japan and South Korea have adopted similar goals. China and India, which together account for well over half of global steel output, are expanding their carbon markets and introducing policies to define so-called Green Steel classifications.
Only Russia and Iran currently remain outside this shared decarbonization path.
Technology, energy and raw materials – the three critical pillars
The ecological transition of the steel industry requires a deep technological overhaul. Fully carbon-free solutions have not yet reached industrial maturity, and production costs remain significantly higher than those of traditional processes.
Replacing blast furnaces with electric arc furnaces will also lead to a sharp rise in electricity demand – energy that must be both renewable and cost-competitive. At the same time, developing a green hydrogen supply chain, intended to replace natural gas in thermal processes, is essential, though still far from full-scale deployment.
On the raw materials side, the availability of high-grade iron ore and high-quality scrap remains limited. This could intensify competition for resources and widen the price gap between conventional and low-emission steels.
Investments and regulation – transition needs stability
According to the analyses presented during the event, full decarbonization of the European steel industry will require investments estimated between €60 billion and €85 billion. It is an enormous commitment for a sector that, after years of weak margins and stagnant demand, must now finance the most extensive technological transformation in its history.
Speakers also stressed the need for a stable and coherent regulatory framework. The rapid evolution of EU rules on the Emissions Trading System (ETS) and carbon accounting risks creating uncertainty in a sector where investment cycles span several decades.
Recycling and circularity – a tangible contribution
Within the path to climate neutrality, steel recycling remains an immediate and scalable tool.
Data presented in Rimini confirmed that the steel packaging recovery in Italy has already generated significant environmental and economic benefits, with more than €1.4 billion worth of recovered material and over 500 million kilograms of CO₂ avoided between 2000 and 2024.
These results show how a circular steel industry can directly contribute to emission-reduction goals by lowering dependence on primary raw materials and maximizing the value of resources already within the production cycle.
Toward a more sustainable European steel industry
The decarbonization of Europe’s steel sector is clearly underway but remains riddled with uncertainties.
The transition requires a delicate balance between technological innovation, economic sustainability, and regulatory coherence.
As emphasized during the discussions at Ecomondo, the goal is not only to produce zero-emission steel, but to build an industrial model capable of remaining competitive in the long term – one that reconciles growth, environmental responsibility and energy security.
Assofermet Acciai: Italian market awakens amid protectionism, announced price hikes
In recent weeks, the Italian steel market has shown an unexpected revival, driven by the tightening of trade and economic protectionist measures.
Buying interest has returned significantly, with renewed dynamism both from end-users and from service centers specializing in carbon flat products, according to the market report dated November 6 from Assofermet, the association representing Italian companies involves in the trade, distribution and processing of steel, scrap and non-ferrous metals.
The upturn was mainly triggered by concerns over rising duties and the introduction of costs linked to the Carbon Border Adjustment Mechanism (CBAM), as well as by fears of stricter import quotas on raw materials. Many operators have therefore brought forward their purchases for the coming months in an effort to hedge against the price increases already announced by European mills. This behavior contributed to a temporary improvement in shipments during October, although early November has been marked by a slowdown in demand and a renewed sense of caution.
Overall, the situation remains complex. While rising prices are supporting producers’ margins, they also risk undermining the competitiveness of the European manufacturing industry – especially if trade barriers are not extended to finished or steel-intensive products. Without coordinated action at the EU level, Assofermet warns, there is a real risk of structural damage to the continent’s industrial base.
Meanwhile, European mills, backed by the existing customs barriers, are maintaining the announced price increases for deliveries scheduled in 2026, despite persistently weak demand. October closed with volumes below expectations and price levels insufficient to ensure satisfactory profitability, while domestic competition remains intense. However, the outlook for the coming months could mark a turning point, supported by the expected reduction in import volumes and by early purchasing activity driven by regulatory uncertainty.
In the stainless steel flat segment, the situation remains uneven: October recorded a modest recovery in long products, while difficulties persist for flats and tubulars. The construction sector is showing early signs of improvement, sustained by stronger demand for reinforcing bar and welded mesh, with prices gradually consolidating.
For ready-stock distributors, interest in European-origin material continues to grow, with domestic production now perceived as more competitive and stable than imports. Availability remains ample, yet some buyers are already reporting requests for slight price increases for 2026 – in line with the overall upward trend and within a still-weak but steady demand environment. As regards imports, pressure persists to ship volumes within the first half of next year, ahead of the enforcement of new, more restrictive safeguard measures.
In the tinplate segment, Assofermet highlights a steady increase in interest for EU-origin production, which is currently benefiting from greater stability and a competitive edge over imported material. Initial requests for slight price hikes in 2026 have already emerged, with availability expected to remain adequate thanks to the slowdown in domestic demand. At the same time, imports continue to push for deliveries within the first semester, in an effort to anticipate the entry into force of the upcoming European protection measures.
Overall, November appears likely to be a transitional phase for the steel sector: the combination of protectionist policies, environmental costs, and macroeconomic instability is reshaping purchasing strategies along the entire supply chain. Ahead of the industry fair in Maastricht scheduled for November 18–20, market participants see the coming weeks as a crucial period for discussion and assessment – to determine whether the recent rebound marks the beginning of a genuine trend reversal or merely a brief pause in an otherwise uncertain year for the European steel industry.