WV Stahl: A permanent reduction in electricity prices is essential
Confindustria calls for pragmatic EU ETS reform to protect industrial competitiveness
Antonio Gozzi, special advisor for European strategic autonomy, competitiveness and the Mattei Plan at Confindustria, the main association representing manufacturing and service companies in Italy, has once again drawn attention to the need for a revision of the EU Emissions Trading System (ETS), stressing the importance of correcting certain mechanisms which currently risk undermining the competitiveness of European industry. He made the remarks in Brussels during a Confindustria press conference dedicated to the issue.
According to Gozzi, the ETS has played an important role in the decarbonization path of European industry, but developments in recent years have made pragmatic action necessary. Since 2017, he recalled, the price of CO₂ has risen from around €5-8 per metric ton to nearly €100 per metric ton, leading to a sharp increase in costs for the European production system. This increase, he pointed out, has no equivalent in the main competing economies: in markets such as California, for example, the carbon price stands at around $25 per metric ton.
Gozzi also underlined that the impact of the ETS does not concern only companies’ direct emissions but is also reflected in electricity costs. According to various estimates, the mechanism contributes around €25-30/MWh to electricity prices during the hours when prices are set by gas-fired thermoelectric plants. This is a particularly significant factor in Europe, he noted, where energy prices are already substantially higher than in other major economic areas.
For this reason, Confindustria is calling for a pragmatic revision of the ETS, with action on the mechanisms that have contributed to excessively reducing the availability of allowances and increasing costs for companies, while not calling into question the decarbonization targets. “It is positive that the issue has finally entered the European debate,” Gozzi stated, reiterating that the goal must be to combine ecological transition and industrial competitiveness, while preventing European companies from being placed at a disadvantage compared to their international competitors.
Gozzi’s latest remarks are part of a debate that had already emerged in recent weeks, when he repeatedly highlighted the critical issues surrounding the ETS and the need to correct its impact on European industry. The issue falls within a broader context of growing pressure over energy and regulatory costs, which, according to Confindustria, must be addressed through measures capable of supporting the transition without jeopardizing the industrial resilience of the continent.
Author: SteelOrbis Editorial Team
Assofermet Acciai: Prices in Italy set to rise in summer due to new safeguards
According to the latest monthly market report issued by Assofermet, the association representing Italian companies active in the trading, distribution and processing of steel, the Italian steel market is currently dealing with a persistent weakness in downstream demand and upcoming trade policy implementation that could significantly alter price trends during the summer months.
Carbon flat steel service centers face low order books, but look forward to summer recovery
In the carbon flat steel segment, the downstream market continues to show structural weakness. Rare exceptions are represented by the shipbuilding sector, defense, energy (with specific reference to renewables), and a few industrial niches. In recent weeks, European steel mills have registered a slight decline in their price lists. This reduction was promptly passed on and amplified by service centers in an attempt to collect orders and replenish still insufficient order books.
According to Assofermet, however, this bearish trend appears inconsistent with the upcoming European regulatory framework. The imminent entry into force of the new EU safeguard measures on July 1 – characterized by a significant tightening of import quotas and a doubling of out-of-quota duties – combined with CBAM constraints and existing antidumping measures, will drastically reduce procurement options from non-EU countries.
While these restrictions do not directly impact consumption, they will strengthen the bargaining power of EU steel producers. For this reason, it is reasonable to expect that during the summer months, dwindling inventories and the need for new procurement will foster a trend reversal, pushing prices back to significantly higher levels.
Stainless steel sales volumes collapse in May
For service centers specializing in stainless steel, the scenario is quite the opposite: May highlighted a noticeable slowdown in real demand, with volumes falling by 15-20 percent compared to previous months.
As the extraordinary factors that had artificially supported prices during the first four months of the year faded, the structural weaknesses of the sector emerged. The profitability of distribution and processing companies is currently under severe pressure, squeezed by difficult-to-manage corporate costs, stagnant demand and strong competitive pressure. At present, the association does not foresee concrete signs of a recovery for the coming months, noting, “The market therefore remains characterized by high uncertainty, limited visibility on future orders, and general caution across the entire supply chain.”
Stockists see first positive signal since beginning of year
On the other hand, stockists registered the first increase in sales (both in terms of value and volumes) in May 2026 compared to the same month in 2025. This represents the first favorable result since the beginning of the year, although it must be interpreted with caution as it is partly affected by a base effect compared to a particularly complex May 2025. On the international level, the provisional trade agreement reached between the European Union and the United States on May 20, 2026 (which imposes a 15 percent cap on duties for most European goods) reduced short-term uncertainty, even though the issue of the 50 US tariff on steel and aluminum remains unresolved.
By product, Assofermet reports a positive context for longs, flats and hollow sections, mainly driven by a recovery in construction activities and orders from the energy and industrial sectors. In sharp contrast, the stainless steel segment remains in deep trouble. Stainless steel tubes, longs and flats registered significant declines in both volumes and values, affected by a structural weakness that shows no signs of reversal.
Tinplate prices on the rise amid stronger demand
In the tinplate segment, demand is supported by the food sector ahead of the seasonal peak in canning. The progressive rebalancing of the market and destocking along the supply chain are pushing prices upward. This trend is further supported by a contraction in supply, caused by delivery delays from some European steel mills and increasing logistical difficulties regarding imported materials. Expectations for the coming weeks therefore remain oriented toward moderate positivity.
Outlook
In conclusion, the moderate recovery observed in May opens a window of opportunity for the supply chain, but Assofermet warns that it is too early to talk about a structural shift in the market. Final demand remains fragmented and discontinuous, forcing structural steel fabricators, processors and distributors to keep inventories at a minimum and manage procurement with extreme caution. Stockists’ margins will also remain under pressure, squeezed between high purchasing costs and unstable consumption.
In the short term, the stability of the sector will depend entirely on political and commercial factors. Market participants are focusing their attention on the actual impact of the new EU safeguard measures on domestic prices from July 1, as well as on the evolution of negotiations between Brussels and Washington for a possible revision of the 50 percent US customs duties on steel and aluminum by the end of the year.
Author: SteelOrbis Editorial Team
Bureaucracy, regulation bring value, protection for steel
The growing amount of regulation and bureaucracy brings value and protection for the European steel sector, panellists said during the Kallanish Europe Steel Markets conference in Vienna on Tuesday.
Jaap Jan Aardenburg, head of trade affairs at Tata Steel Nederland, told delegates that bureaucracy can be of value to the sector by creating a level playing field. He added the European Commission is now thinking about the consequences of its policies, an improvement on past decision-making.
Wolfgang Mitterdorfer, member of the management board at voestalpine Steel Division, agreed that European bureaucracy is “better than it used to be” and was broadly optimistic about the opportunities ahead.
However, he added: “What we desperately need is predictability,” in relation to the ETS regime. He highlighted his company’s transformation was conceived five-to-six years ago but now the system is changing, and being reviewed again.
While Mitterdorfer noted there has been a psychological impact on the market from the upcoming safeguard changes and CBAM, the full effect has not yet been seen due to customers’ having stockpiled material.
Miroslaw Motyka, Polish Steel Association president, told delegates that more CBAM and regulation was needed, and called for additional products and sectors to be added to CBAM and trade measures, to protect downstream industries.
Judith Neyer, head of energy policy and strategy at Austria’s economy and energy ministry, saw the steel industry “at a crossroads” in 2026. She acknowledged recent calls for the relaxation of the ETS timeline but added that Austria has asked for more time because the scheme is working as intended, but the global landscape has changed.
Neyer agreed that “something has changed” with the European approach to policy. “I think the EU is trying something new, in terms of looking at whole industrial sectors and not just policy fields.”
The ETS scheme and CBAM are only starting to work together as a team, to drive the steel industry, while without a strong carbon signal there will be no hydrogen ramp-up or infrastructure in Europe, and no electrification, she warned. The carbon signal is critical for investors, she added.
“I think ETS is already driving decarbonisation strategies around the world and that is starting to reflect what the EU can trigger,” Neyer said.
However, Motyka warned about the balance of decarbonisation versus deindustrialisation.
“We have to find out what CO2 reductions were achieved through deindustrialisation from lower output, and the shutdown of plants, and which were really achieved through investment and real transformation,” he asserted.
Motyka also highlighted the ongoing geopolitical tensions, which are “a new creature we have to cope with”. Mitterdorfer agreed and noted the “very fragile” global conditions in relation to energy costs, tariffs, and logistic problems. “The challenge is that many [of the] challenges are new,” he added.
Robust protection was seen as key for maintaining competition in the sector. “We are not afraid of fair competition; what we are afraid of and are protecting against is unfair competition,” Motyka said.
“We need to get our act together, and create a strong and resilient full manufacturing [base] and protect the supply chain against unfair competition; then we can create a competitive edge,” Aardenburg concluded.
