Germany is seeing a modest rebound in consumption, alongside a resurgence of consumer confidence in the market, says Feralpi Group president Giuseppe Pasini. He forecasts a market recovery in the second half of the year thanks to the new government.
He anticipates a more robust partnership between the government and industry over energy, as well as a shift in the new authorities’ perspective towards the industrial sector. Energy transport costs for energy-intensive businesses have increased throughout the last two years, and the previous administration did little to assist businesses.
The prospect of the European Commission establishing a unified energy policy appears limited, given the diverse interests of individual member states. The European Commission “is very shy about industrial policies, energy, and decarbonisation,” Pasini told Kallanish at Made In Steel last week. Steelmakers are being urged to decarbonise by transitioning from the blast furnace route to the electric arc furnace route without addressing the 18 million tonnes/year of scrap that exits the EU, he added.
“Regarding Italy … we cannot complain about consumption as 2024 was an important year for PNRR [the national recovery fund for infrastructure projects],” Pasini noted.
Italian consumption has shown resilience, with the rebar market bolstered by the infrastructure sector, supported by the national post-pandemic recovery fund. Multiple projects are currently in progress, with authorities actively seeking to delay the 2026 deadline set by the European Commission for the completion of PNRR projects.
The influence of US tariffs on the rebar sector appears to be limited; however, it is important to recognise that steel operates within a broader industrial ecosystem, where machinery and certain equipment manufacturers are significantly affected by the trade conflict, Pasini observed. “The true risk today is China … Trump is defending his nation from a Chinese invasion rather than a European one … I believe in the end we will reach a deal with the US by negotiating,” he added.
In 2024, the Feralpi group reported a modest on-year increase in production to 2.5 million tonnes of steel. Turnover was at just under €1.7 billion ($1.9 billion), reflecting a minor decline relative to 2023.
In the first quarter of 2025, these indicators were largely consistent on-year. Pasini anticipates some improvement this year, bolstered by the PNRR projects. The infrastructure sector is currently propelling demand, whereas the residential construction market in Italy is experiencing a slowdown. Profit margins continue to face challenges as a result of elevated energy costs and expensive scrap.
Feralpi is allocating resources towards decarbonisation. Pasini confirmed the launch of the company’s brand of low-emission steel for construction, named FERGreen. These products are considered “best in class” in Environmental Product Declarations (EPD) and rank highly for minimum recycled content, he added.
In Italy, Feralpi started a new spooler line in Lonato del Garda this year, which is expected to improve production efficiency and quality, completing its product range. In Germany, Feralpi Stahl launched a new rolling mill with zero direct emissions in Riesa on 15 May. According to Pasini, it is the first facility in Germany specifically designed for the production of spoolers, and the first globally to achieve coil weights of up to 8 tonnes for sustainable steel production.
Natalia Capra France
