Italy’s first DRIs to start production in 2026

Italy’s first direct-reduced iron plant is likely to start production in 2026, Franco Bernabe, chairman of Acciaierie d’Italia and president of DRI D’Italia, said May 11.

“We are doing the preliminary selection of the technology to use for the DRI and in July we will make the decision on the final investments with the procurement tender, so we are at a good point with the production of the DRI that should start in 2026,” Bernabe’ said told S&P Global Commodity Insights on the sideline of the Made in Steel conference and exhibition.

DRI D’Italia will build two DRIs, each with 2 million-2.5 million mt capacity. One will feed Acciaierie d’Italia, once italy’s largest flat steel producer with an installed capacity of 8 million-9 million mt of crude steel capacity, and its new electric arc furnace (which should also be ready in 2026). The second DRI is expected to feed a consortium of private steelmakers mainly located in the north of the country, which produce steel via scrap with EAFs.

The DRIs are considered essential to help Italian steelmakers reduce their dependency on scrap, a key raw material that is expected to become less available in the future.

Platts, part of S&P Global, assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) at $375.25/mt CFR May 10, up $3.50/mt on the day.

Acciaierie d’Italia currently operates BF1 and BF4. The steelmaker idled production at BF2 last July in response to low demand, declining steel prices and high production costs, while the 3.5 million mt/year BF5 has been idled since 2015.

Bernabe said BF2 would restart production in the second half of the year and reiterated the company’s commitment to refurbish BF5 with a new green technology with carbon capture.

Platts assessed HRC in Northwest Europe down Eur5/mt May 10 at Eur800/mt ex-works Ruhr.

Author Annalisa Villa