Decarbonisation remains central to investment across the steel sector globally, according to Italian equipment maker Danieli.
The full implementation of CBAM in 2026 will favour electric arc furnace (EAF) producers over traditional blast furnace operators. While COP30 commitments, including net-zero targets by 2060 and a threefold increase in climate finance by 2035, are expected to accelerate the adoption of greener steelmaking technologies, including direct reduced iron (DRI) plants using gas and hydrogen, the group says in its financial statement for the six-month period ended 31 December 2025.
Danieli is well positioned to support the green transition, offering technology across the full metals processing range including steel, aluminium and other metals while targeting net-zero emissions validated by SBTi and CDP. The company adds that advances in research and development over the past decade have helped reduce both capital and operating costs in the metal segment bosting investment opportunities in the industry, Kallanish notes.
The group’s revenue stood at €1.6 billion ($1.84 billion) reflecting a 16% decline on-year. Ebitda reached €191 million, increasing 17% compared to the same period the previous year. Ebitda was supported by strong margins in the Danieli plantmaking segment and a better steelmaking performance from ABS (see separate article).
Danieli’s steel market outlook for 2026 is positive, with prices and volumes expected to recover, particularly in Europe, supported by the introduction of CBAM and tighter import quotas.
Last year China retained its dominant position, accounting for around 52% of global output, while continuing to shift towards EAF steelmaking to reduce emissions.
A moderate recovery in Europe is expected to partially offset slowdowns in the US and China. The US is forecast to grow 2.4% in 2026 and 2.0% in 2027, while China’s growth is projected at 4.5% and 4% respectively, weighed down by real estate sector challenges.
India remains a bright spot, with growth estimated at 7.3% in 2025 and 6.4% in both 2026 and 2027. EU growth is forecast at 1.3% in 2026 and 1.4% in 2027, supported by easing inflation and ECB rate cuts, though manufacturing remains weak due to US tariffs and elevated energy costs.
The global economy grew 3.3% in 2025, matching the 2024 figure, with the IMF projecting similar growth of 3.3% in 2026 and 3.2% in 2027.
