EUROMETAL Southern Europe Meeting 2026: Vezzosi and Julius warn of risks of deindustrialization amid CBAM, safeguards and rising costs
The first panel at the “EUROMETAL Southern Europe Meeting 2026” hosted by EUROMETAL and Assofermet in Milan, February 26, opened with a clear message: the risk of the deindustrialization of the European Union is no longer an hypothesis, but a dynamic that the industry – along the entire steel supply chain – already perceives as real. The core of the discussion was the combined impact of trade measures, regulatory costs and growing global competitive pressure.
Cinzia Vezzosi, president of Assofermet, framed the issue as “systemic” and not limited to the steel sector alone. Vezzosi recalled how the EU has adopted measures with shared objectives (tackling environmental dumping, protecting domestic production, the ecological transition), but called for a look at their effectiveness, stating, “Are these instruments really strengthening the EU’s ability to compete or, on the contrary, do they risk undermining it deeply?”
According to the president of Assofermet, CBAM – created to rebalance competition – risks turning into a heavy burden for distribution and processing, i.e., for those segments that are already operating in global markets and are serving downstream manufacturing. The competitive gap, she said, could become structural. When this happens, she said, “deindustrialization begins”, with direct effects on employment, industrial capacity and the resistance of the value chain.
Vezzosi called for a change of pace in the European approach, asking for consistency between transition and competitiveness, stating, “This is not a corporative appeal, rather a systemic appeal. We ask environmental policies to be accompanied by industrial policies and that the protection of production does not end up penalizing processing and distribution. Above all, we ask for competitiveness to become a central issue of European choices and decisions.”
Next, Alexander Julius, president of EUROMETAL, shifted the focus to the resilience of European manufacturing, recalling that the supply chain does not end with primary steel. Distribution and user sectors make all the difference, he said, because without those who transform and incorporate steel into finished products, industrial demand and, consequently, the very sustainability of the segment in Europe are lacking.
In his speech, Julius insisted on a key point: the current combination of trade measures and environmental regulations, with rising costs and still unclear details, is generating a level of uncertainty that the industry considers dangerous. In his opinion, this not only affects the accounts of companies, but also the ability to plan and invest. “The industry needs certainties: at least we need to be able to make calculations. And, unfortunately, this is lacking today,” he said, warning that the absence of a predictable framework risks translating into rising costs that are difficult to manage when the measures are fully operational.
Julius then launched a further alarm signal on the degree of market readiness, stating, “I fear that many companies are not ready and that they are only partially considering these costs in their calculations. And this could turn into a surprise towards the end of 2027, when it will be time to pay.” In the context of the debate on CBAM, this came as a reminder of the need for tools and application rules to be defined quickly, to avoid distorting effects along the value chain.
Finally, Julius underlined the political dimension of the issue. According to the president of EUROMETAL, “European institutions will do nothing without pressure from national governments. This is why we must remain united and do something together,” adding that EUROMETAL is preparing a Europe-wide initiative, open to the involvement of interested associations in addition to Assofermet, with the aim of building a common position and a coordinated action “to be started immediately”, because – he concluded – “We have to do something now”.
Assofermet at SteelOrbis Italy Forum: collaboration across the supply chain is key to decarbonization
SteelOrbis has come back to Italy after seven years with SteelOrbis Italy Forum 2024, attracting almost 200 participants. The conference held in Milan on October 8 opened with an Italian steel market overview by Assofermet, the Italian association representing Italian distributors of scrap, raw materials and steel products.
“We are living through a particularly challenging historical moment,” declared Cinzia Vezzosi, president of Assofermet. The Green Deal, launched in 2019, has given a strong push to complex plans, setting ambitious goals with tight deadlines. In this ecological transition, recycled steel emerges, according to Vezzosi, as the most environmentally friendly raw material and a key component for the future of the steel industry. Recycled steel offers three fundamental advantages: it is eco-friendly, acts as an “iron carrier,” and is immediately available. Additionally, the spread of electric arc furnaces (EAFs) is a key factor in improving the circularity of steel production.
In this context, Italy holds a prominent position. “84 percent of Italian steel production comes from EAs, compared to 46.5 percent in the EU and 72 percent in the United States,” Vezzosi explained. This places Italy at the forefront in Europe and globally. A further increase in the demand for recycled steel is expected, and Vezzosi emphasized that this material is already available in significant quantities across Europe. “Increasing the demand for recycled steel would provide a great boost to the sector, making the entire supply chain more resilient.”
To fully take advantage of the availability of the material, technological advancements are necessary, both in industrial plants and machinery, which will also reduce quality waste and increase the availability of “old scrap”. However, regarding DRI (direct reduced iron), the president of Assofermet pointed out that it alone will not be able to meet global demand, although it can improve the quality of the final product. “Scrap will be needed to make up for the shortages in charge and iron content,” she affirmed.
The topic of transition and the current challenges were also addressed by Paolo Sangoi, president of Assofermet Acciai. Sangoi highlighted how the global economic landscape is impacted by the Chinese economic crisis, the inaccessibility of the Russian market, and conflicts in the Middle East and Ukraine. These factors act as a “drag” on economic recovery, worsened by rising costs and declining service quality in manufacturing. Major issues include commercial defense policies and the risk of excessive protectionism.
Sangoi emphasized the importance of imports to the Italian economy, but recent discussions on antidumping measures against countries such as Japan, Vietnam, South Korea, India, and Turkey, which are already subject to quotas, could trigger retaliatory actions and further difficulties for international trade.
In this uncertain context, the Italian manufacturing system is under increasing pressure, Sangoi said. The efforts required by the European Union to achieve carbon neutrality are substantial, and, while the Green Deal offers opportunities, it could place significant strain on strategic sectors, like automotive, which are already hit by global crises. The challenges that emerged in 2024 have fueled fears of a possible “collapse” of the Italian industrial system, with the risk that many companies might relocate to countries with less stringent regulations.
Sangoi concluded by expressing hope for an open and constructive dialogue among all associations and stakeholders in the steel supply chain, both nationally and across Europe, to ensure a sustainable energy transition while preserving the sector’s competitiveness.
Cinzia Vezzosi (Assofermet): the quality and cost of scrap will be crucial
The element that has now marked 2024, i.e. the lack of demand, is also the one that is worrying the distribution the most.
And if a recovery in the third quarter is now unlikely, the possibility of a more positive development in the medium term is possible.
Cinzia Vezzosi, president of Assofermet, explains this in a siderweb interview. She clarified on recycled steel and scrap: quality and costs will be decisive.
