Italy seeks faster CBAM extension to downstream products
Italy is calling for a faster extension to the scope of the Carbon Border Adjustment Mechanism (CBAM) to downstream products, calling the current proposed start date of 1 January 2028 too distant, Minister of Enterprises and Made in Italy Adolfo Urso says.
The comments were made at a recent meeting in Rome with representatives from other ministries and industry associations, including Federacciai, Italy’s steelmakers’ association.
Urso noted that the scope of finished products covered by an expanded CBAM must be carefully defined to protect industrial value chains and avoid market distortions. He added that any potential inclusion of ferrous scrap should be considered. Clarity is also needed on how the temporary decarbonisation fund – designed to support exports – will operate, as well as any CBAM anti-circumvention mechanisms.
Regarding the review of the EU Emissions Trading System (ETS), Urso said it should take into account the first evidence emerging from CBAM and address existing market distortions, starting with excessive price volatility linked to speculation.
He added that for some energy-intensive sectors, climate neutrality remains technically and economically unachievable at present, effectively turning the ETS into an additional form of taxation. In this context, maintaining free allowances beyond 2034 would represent a balanced choice to recognise the efforts of companies already engaged in decarbonisation.
2026 must be the year of reform and a turning point. “The Commission now needs to take bold and pragmatic decisions to defend and revive European production in the most exposed sectors, such as automotive and energy-intensive industries,” Urso states in a ministry note obtained by Kallanish.
Pittini revamps southern Italian plant
Italian long steel producer Pittini is investing in revamping its SiderPotenza rolling mill in the south of the country.
With hot start-up scheduled for 2027, the project will improve production efficiency while reducing billet reheating gas consumption and overall CO2 emissions, in line with Pittini Group’s sustainability strategy, Kallanish notes.
Italian equipment maker Danieli was awarded the contract. It explains that the revamp will include a new rolling mill featuring 20 SHS cartridge stands, enabling a billet size increase to 165mm. This configuration is designed to prepare the plant for the installation of a spooler line, initially producing coils of 2.5 tonnes, with provisions for a future upgrade to 5t coils through the addition of a horizontal billet welder (HBW).
The upgraded mill will supply the existing bar line, producing sizes from 2x8mm up to 40mm, as well as a future spooler line for coils ranging from 10mm to 25mm. Safety and working conditions will be improved through advanced design solutions, Danieli notes.
One of the main challenges is carrying out the project within a 45-day shutdown, achieved through customised engineering and extensive pre-assembly to minimise on-site installation and commissioning time, it adds.
Federacciai: 2026 could be turning point given right conditions
SteelOrbis talked to Antonio Gozzi, president of Federacciai, the Italian steel producers association, about the situation in the EU steel market and decarbonization efforts. According to Gozzi, the key is to reduce carbon emissions without compromising the competitiveness of European industry.
How would you describe the current demand trends in the EU steel market across major sectors (construction, automotive, machinery, etc.)?
Europe imported 28 million mt of steel in 2024, but the situation will change profoundly from next year. A cap on imports is expected – free trade will be blocked at 18 million mt and beyond this threshold a 50 percent duty will be introduced. On top of this, two fundamental measures are being implemented – Buy European, which obliges public tenders to buy at least 60 percent of steel produced by European companies, and CBAM, which will impose a cost equivalent to the price of CO2 paid in Europe on products from countries not adhering to the Kyoto Protocol. Together, these initiatives will mark a structural change in the European steel market, reducing import pressure and supporting domestic demand for EU producers.
How are high energy prices affecting output, investment and competitiveness?
High energy prices strongly penalize the competitiveness of the European steel industry, with Italy recording the highest industrial costs in the world. Businesses can survive thanks to their extraordinary efficiency, which somehow compensates for the crazy energy costs. The absence of a common energy policy and the ETS system further exacerbate costs. We need interventions to reduce the price of electricity and measures such as the Energy Release, and we also need the energy transition not to be ideological – biofuels, synthetic fuels, carbon capture, nuclear power must also be used to achieve a balanced decarbonization which is not devastating for industrial assets.
Do you envisage further consolidation or restructuring processes in the European steel industry?
I do not believe that the European steel industry should prepare for a season of restructuring or downsizing, but rather for a phase of profound renewal. Making our companies survive and prosper means continuing on the trajectory of innovation and investment that has always distinguished us. We must leverage our competitive advantages. We are among the most decarbonized manufacturers in the world and we must keep the passion for manufacturing alive, enhancing the work and the people who are part of it. This is the only way we can guarantee a future and pride for European steel.
What are the effects of geopolitical developments on trade routes?
The direct effects of Trump’s tariffs, now at 50 percent, have practically wiped out our exports to the US, but our greatest concern is about indirect effects, the so-called trade diversion. Countries that have been excluded from the American market, especially China with its huge production overcapacity, are pouring their flows into Europe, which remains the most open market in the world.
We are living in a new historical phase. Globalization as we know it no longer exists, and free trade, if not accompanied by fair rules, risks becoming wild trade. That is why we are calling for a redefinition of international trade rules and effective defence measures, and we support tools such as Buy European, which can help protect the European industry in the face of increasingly distorted and aggressive competition.
What are your expectations for steel demand and prices in the short to medium term?
I do not expect a significant increase in demand in the short and medium term, but rather a phase of adjustment linked to economic weakness and geopolitical uncertainties. However, the steel industry is undergoing a structural transformation. The share of steel produced by electric arc furnaces (EAFs) will grow worldwide and is expected to exceed 45 percent by 2030. As for prices, the main variable will be the cost of CO2: with the CBAM coming into force, and the progressive reduction of free allowances, the price of emissions could reach up to 200 dollars per metric ton, strongly affecting production costs and therefore steel prices.
Are you optimistic or cautious about the EU steel sector’s medium-term competitiveness?
I look at the future of the European steel industry with great pride but also with realism. Italy can be proud of its model – we are among the most decarbonized steel producers in the world and an example of circular economy thanks to the main use of electric furnaces and scrap. However, we are going through a particularly difficult phase. We are living in an era of uncertainty, marked by high energy costs, complex regulatory transitions and aggressive global competition. For this reason, while I remain confident in the strength and innovation skills of our companies, I am cautious about European competitiveness in the medium term. We need decisive political choices and a real European industrial and energy policy that accompanies the green transition without sacrificing production and employment.
How do you assess the EU’s latest announcement on safeguard policies?
We have warmly welcomed the European Union’s announcement on the revision of the safeguard measures for steel. It is a necessary and long-awaited step, because without adequate defense policies, the European industry risks being overwhelmed by unfair competition and production overcapacity from non-EU countries. I would like to thank the [executive] vice-president [for Prosperity and Industrial Strategy of the European Commission] Séjourné and [European] commissioner Šefčovič for their sensitivity to the European industrial crisis and for their willingness to change direction quickly. We hope that the new measures will be adopted as soon as possible, together with other instruments such as Buy European, to ensure a fair market and to protect the competitiveness of the European steel industry.
Are these trade measures effective in ensuring a level playing field or do they end up distorting competition?
We are strong supporters of free trade, but not of wild trade. Defensive measures should not be seen as distortion tools, but as guarantees to ensure a level playing field in an increasingly unbalanced global environment. Europe today is the most open market in the world, and it risks paying a very high price if it does not acquire adequate tools to protect its industry.
What do you think are the main challenges of CBAM and what effects do you foresee on trade flows?
CBAM is an important tool, created with the aim of protecting the European industry from forms of unfair competition linked to the different environmental rules between countries. However, its structure still presents serious contradictions and application difficulties that risk compromising its expected positive effects. With the official CBAM implementation on January 1, 2026, and free CO2 allowances being phased out, the cost of emissions could reach up to $200 per metric ton. In the absence of corrective measures, this will make production for European blast furnaces unsustainable, shifting steel flows to less regulated areas. This is why we are asking Europe to accompany the application of CBAM with a real industrial policy, which protects the competitiveness of our companies and guarantees a sustainable and non-destructive green transition for the European steel industry.
Do you think current EU funding mechanisms are sufficient to support the green transition in steel?
The current funding mechanisms and policies of the European Union are not enough. The Green Deal has had an overly ideological and not very pragmatic approach, which has penalized the competitiveness of European industry without creating real technological advantages. We have seen a 30 percent loss of production in hard-to-abate sectors and over a million job losses in the past five years. While Europe imposes increasingly strict rules on itself, we are simply exporting jobs and importing CO2 from countries with lower environmental standards. We need less ideology and more pragmatism. We need to review the ETS system, maintain free allowances for energy-intensive consumers and concretely promote all useful technologies for decarbonization, such as carbon capture, biofuels, nuclear power and synthetic fuels, with a view to true technological neutrality. Only in this way will we be able to decarbonize without destroying our industrial base.
How do you see the balance between environmental targets and global competitiveness?
The balance between environmental targets and global competitiveness is only possible if Europe abandons ideology and adopts a pragmatic approach. We need to understand that there is no single way to decarbonise. Biofuels, nuclear, carbon capture and synthetic fuels are all useful technologies and must be able to coexist. It doesn’t matter if the cat is black or white, the important thing is that it catches the mouse. What I mean is that what really matters is reducing CO2 emissions without compromising the competitiveness of European industry.
How was 2025 and what are your expectations for 2026?
2025 was a fairly complex year for the steel industry, marked by an uncertain macroeconomic environment, weak demand in some key sectors, and strong pressure on energy and regulatory costs. It was a year of transition, in which companies worked primarily to defend volumes, employment, and competitiveness, postponing more structural investment decisions in many cases. 2026 could be a turning point, provided that the right conditions are in place. We expect a gradual recovery in demand, linked to the resumption of industrial and infrastructure investment, and a greater impact of European policies to protect the sector, starting with CBAM, safeguard measures, and the containment of unfair competition. The challenge remains to reconcile decarbonization and competitiveness: if the transition process is accompanied by concrete industrial policies, sustainable energy costs, and rules applied fairly at the European level, 2026 could mark the beginning of a more stable and promising phase for the Italian steel sector.
Flacks Group agrees with Italian government to acquire former ILVA Steel Group
U.S.-based private investment group Flacks, established in the UK, announced that it has reached an agreement with the Italian government to acquire the former ILVA steel group, which has long been loss-making and subject to environmental concerns.
The main plant of ILVA, located in the city of Taranto in the Puglia region and one of Europe’s largest integrated steel facilities, has for years been associated with environmental pollution and high cancer rates in the surrounding area. With the acquisition agreement, the aim is to secure the plant’s long-term future.
In a statement shared by the Florida-based Flacks Group on LinkedIn, the company emphasized that the transaction will preserve the employment of approximately 8,500 skilled workers and strengthen European supply chains that are critical to the automotive, construction, and infrastructure sectors.
The Group plans to invest up to EUR 5 billion in the modernization of the facility, including electrification and furnace upgrades, in order to support decarbonization, efficiency improvements, and sustainable growth. The statement also noted that the Italian government will remain a strategic partner with a 40% stake, while Flacks Group will hold an option to acquire an additional 40% share at a later stage.
Commenting on the transaction, Michael Flacks, Founder and Chairman of Flacks Group, stated: “Our objective is to make a long-term investment, modernize responsibly, and ensure that this historic steel plant has a lasting and sustainable future.”
Assofermet Acciai: Italian market awakens amid protectionism, announced price hikes
In recent weeks, the Italian steel market has shown an unexpected revival, driven by the tightening of trade and economic protectionist measures.
Buying interest has returned significantly, with renewed dynamism both from end-users and from service centers specializing in carbon flat products, according to the market report dated November 6 from Assofermet, the association representing Italian companies involves in the trade, distribution and processing of steel, scrap and non-ferrous metals.
The upturn was mainly triggered by concerns over rising duties and the introduction of costs linked to the Carbon Border Adjustment Mechanism (CBAM), as well as by fears of stricter import quotas on raw materials. Many operators have therefore brought forward their purchases for the coming months in an effort to hedge against the price increases already announced by European mills. This behavior contributed to a temporary improvement in shipments during October, although early November has been marked by a slowdown in demand and a renewed sense of caution.
Overall, the situation remains complex. While rising prices are supporting producers’ margins, they also risk undermining the competitiveness of the European manufacturing industry – especially if trade barriers are not extended to finished or steel-intensive products. Without coordinated action at the EU level, Assofermet warns, there is a real risk of structural damage to the continent’s industrial base.
Meanwhile, European mills, backed by the existing customs barriers, are maintaining the announced price increases for deliveries scheduled in 2026, despite persistently weak demand. October closed with volumes below expectations and price levels insufficient to ensure satisfactory profitability, while domestic competition remains intense. However, the outlook for the coming months could mark a turning point, supported by the expected reduction in import volumes and by early purchasing activity driven by regulatory uncertainty.
In the stainless steel flat segment, the situation remains uneven: October recorded a modest recovery in long products, while difficulties persist for flats and tubulars. The construction sector is showing early signs of improvement, sustained by stronger demand for reinforcing bar and welded mesh, with prices gradually consolidating.
For ready-stock distributors, interest in European-origin material continues to grow, with domestic production now perceived as more competitive and stable than imports. Availability remains ample, yet some buyers are already reporting requests for slight price increases for 2026 – in line with the overall upward trend and within a still-weak but steady demand environment. As regards imports, pressure persists to ship volumes within the first half of next year, ahead of the enforcement of new, more restrictive safeguard measures.
In the tinplate segment, Assofermet highlights a steady increase in interest for EU-origin production, which is currently benefiting from greater stability and a competitive edge over imported material. Initial requests for slight price hikes in 2026 have already emerged, with availability expected to remain adequate thanks to the slowdown in domestic demand. At the same time, imports continue to push for deliveries within the first semester, in an effort to anticipate the entry into force of the upcoming European protection measures.
Overall, November appears likely to be a transitional phase for the steel sector: the combination of protectionist policies, environmental costs, and macroeconomic instability is reshaping purchasing strategies along the entire supply chain. Ahead of the industry fair in Maastricht scheduled for November 18–20, market participants see the coming weeks as a crucial period for discussion and assessment – to determine whether the recent rebound marks the beginning of a genuine trend reversal or merely a brief pause in an otherwise uncertain year for the European steel industry.
Assofermet criticises EC CRC anti-dumping investigation
Italian steel distribution association Assofermet has expressed concern over the European Commission’s initiation of an anti-dumping (AD) investigation into cold-rolled coil (CRC) imports, alleging an insufficiency of domestic quality and supply of the products under investigation.
Assofermet “expresses strong disappointment and concern” in relation to the European Commission’s opening of the investigation last week, citing “higher quality standards” associated with relevant producers; downstream dependence on the targeted CRC imports; and existing overlaps with other trade instruments like the existing safeguard protections and anticipated impacts from the fiscal stage of the Carbon Border Adjustment Mechanism (CBAM) – effective from January.
The association condemns what it views as the progressively expanding, burdensome, and complex nature of the European steel trade defense framework, stating that compounding restrictions on European manufacturing’s access to international steel raw materials “significantly reduces the competitiveness of the Union’s manufacturing industry in international markets, with structurally negative impacts on both the economy and employment.”
Assofermet calls on the European Commission to take “a more balanced assessment” of the EU’s steel trade protection framework and its influence on the “stability of the industrial supply chains,” and at minimum exempt existing import flows with arrival before 2025’s end from any imposition of retroactive duties.
The anti-dumping investigation covers CRC imports from India, Japan, Turkey, Vietnam, and Taiwan, China and was prompted by complainant Eurofer on behalf of EU steel producers. Eurofer provided evidence that CRC imports have increased in both absolute volume and market share, alleging injury to the EU’s domestic industry. As part of its complaint, Eurofer highlighted relevant export controls imposed on raw materials used in CRC production processes, which are not accounted for in international export prices, indicating market distortion.
European producers have preferred to focus on steel products other than CRC due to the low domestic margins premising the Commission’s investigation, McCloskey understands from conversations with market participants, seeing producers instead prefer to process value-added hot-dip galvanized (HDG) steel straight from their hot-rolled coil (HRC) portfolio. This deprioritisation of CRC alleviates additional energy costs inherent to cold-rolling processes and allows mills to weight their allocations to stronger margin products, important in a time of crisis for the wider European steel sector and the role played by high energy costs.
Market participants expect that potential new AD measures could have a significant impact on European importers and the attractiveness of international CRC, as trade protection for CRC has traditionally been limited to safeguard provisions without heavy AD or anti-subsidisation exposure.
The European Commission committed to replacing the EU’s steel safeguard mechanism – expiring in 2026 as per WTO rules – earlier this year with a long-term protective instrument in its Steel and Metals Action Plan (SMAP), with early proposals now expected in the first half of October. Under the SMAP the Commission also relaxed the legal threshold for the initiation of trade defense investigations to a “threat of injury” to better facilitate more proactive trade defenses, and has launched import monitoring tools for the bloc’s imports.
The European Economic and Social Committee (EESC) – which advises the Commission via consultation with industry stakeholders – released its official opinion on the SMAP 18 September, generally supporting the Commission’s “step in the right direction” but emphasising “that immediate action is required.”
Part of the EESC’s recommendations to the Commission and most relevant to wider AD investigations, is for a more selective application of the ‘lesser duty’ rule, and the introduction of a ‘melted and poured’ element across EU trade defence measures to better shield EU industry from global overcapacities and circumventionary evasion of its steel trade protections.
Benjamin Steven Journalist, Steel
Assofermet Acciai: September starts weak for Italian steel, with CBAM and US tariffs fueling uncertainty
In the July-August period, the Italian steel market recorded a partial recovery in purchase prices, which rekindled operators’ interest, albeit timidly. However, according to the latest monthly report from Assofermet Acciai, updated as of September 11, the sector faced strong difficulties in passing on the increase in coil costs to end customers, amid persistently weak demand and a widespread climate of uncertainty.
The September outlook shows substantial continuity with previous months, further aggravated by growing concerns related to the CBAM. Imports done during 2026 will be subject to the purchase of certificates as of February 2027. However, the European Commission has not yet disclosed the calculation basis needed to estimate the effective costs.
Additional uncertainty comes from US tariffs on steel and aluminium, which risk diverting volumes from the Far East to Europe, exacerbating the domestic oversupply. In this context, ahead of the new regulation that will replace the current safeguard measure in June 2026, Assofermet has already submitted several key points to the European Commission for consideration in the drafting phase.
July ended with reduced volumes and prices still at their lowest levels, while the first week of September showed no signs of recovery: demand remains below expectations and purchasing activity is limited, also due to high stock levels and very short production lead times.
For stainless flat products, July showed relative stability, with limited single-digit percentage movements, while in August some products, particularly cold-drawn tubes, attempted a modest upward push sufficient to support revenues. The construction sector remains more fragile, with rebar, welded mesh and related products continuing to show signs of weakness.
In the distribution segment, July recorded a trend similar to that of the previous year: stable prices allowed the market’s underlying direction to be assessed without sudden fluctuations, while August saw attempts at upward movement in some categories. September opened with a cautiously improving scenario, with moderately higher volumes and slight price increases in some segments, although the fragility of downstream demand remains evident.
According to Assofermet, the coming weeks will be decisive in shaping the trend for the final part of the year. The evolution of demand in key end-use sectors such as construction and automotive, together with inventory management, will be crucial in determining whether the market can consolidate the first signs of recovery or whether downward pressure from oversupply and international uncertainties will prevail.
Program agreement signed to revitalize Piombino steel hub in Italy
During the Ukraine Recovery Conference held in Rome, a program agreement was officially signed to support the revitalization of the Piombino steelmaking hub in Tuscany. The initiative, led by a public-private partnership, represents a key step toward the reindustrialization of the area and the economic regeneration of the local community.
The agreement was signed by Metinvest Adria – a joint venture between Ukraine’s Metinvest Group and Italy’s Danieli Group – together with the Italian Ministry of Enterprises and Made in Italy (MIMIT), the Ministry of Infrastructure and Transport (MIT), the Ministry of the Environment and Energy Security (MASE), the Ministry of Labour and Social Policies, the Tuscany Region, the Municipality of Piombino, and other local institutions.
The project includes the construction of a next-generation steel plant in Piombino, with a total investment of approximately €2.5 billion, of which €1.5 billion will be allocated to cutting-edge technology supplied by Danieli. The agreement also provides for a development agreement with MIMIT, supported by a SACE guarantee (SACE is Italy’s export credit agency), which will be activated upon approval by the Ministry of Economy and Finance (MEF).
According to Metinvest Adria, the plan will create approximately 1,100 stable jobs, including both direct and indirect employment. The agreement is part of a broader roadmap that has already included the signing of a union agreement with relevant trade organizations.
As previously reported by SteelOrbis, the formalization of this program agreement marks a natural continuation of the process started with the establishment of Metinvest Adria and the subsequent development agreement signed by JSW Italy for the modernization of the existing rail production mill. The signing confirms the shared goal of transforming Piombino into a strategic European hub for green steel production.
“This is not just an industrial project,” stated Yuriy Ryzhenkov, CEO of Metinvest Group, “but a concrete example of reconstruction and international cooperation between Italy and Ukraine.”
The Piombino site is thus positioned to become a European reference point for low-emission steelmaking, leveraging state-of-the-art, energy-efficient, and environmentally sustainable technologies, while also strengthening strategic ties between the two countries.
Italian coil derivatives slide amid weak market sentiment
Prices for Italian coil derivatives continue to decline, with sheet values down by €30–40/tonne ($34-46) compared to May, mirroring similar drops in welded tube prices, according to sources at distribution and service centres.
No upward price adjustments are currently anticipated, as the market remains in a broad downturn driven by falling coil prices both within Europe and for import. The continued decline is affecting the entire value chain, from raw materials to finished steel products. A major distributor voices concern over the persistent erosion of prices, noting the devaluation of inventories. Despite this, he emphasises the need for distributors to maintain sufficient stock levels and continue purchasing in small weekly volumes. Another distributor adds: “Our clients are aware that prices are falling and are holding off purchases, waiting to reach the bottom.”
Sales activity is expected to remain sluggish throughout the week, with little improvement projected until coil prices stabilise. Meanwhile, high processing costs and fierce competition are severely compressing margins at service centres, which some sources describe as virtually non-existent, Kallanish notes.
Hot rolled sheet prices have declined to €660-670/t delivered, while pickled material is now quoted at €690/t delivered, according to multiple sources. A major buyer of tubes and sheets reports a sharp decline in tube prices, citing a rise in commercial discounts from 37–38 points last month to 42–43 points currently. Larger buyers are reportedly securing even steeper discounts. According to a steel purchasing group, the market is nearing a bottom for hot rolled coil prices, with €530-550/t ex-works for European-origin material considered a potential floor. This level may consolidate next month, coinciding with an expected return of buying interest. Following the typical summer slowdown across EU markets, coil prices are forecast to rebound around September due to CBAM, which could lift both coil and derivative product prices.
Tube demand has weakened, reflecting the broader industrial downturn. However, sources note that demand was relatively healthy prior to the recent price correction in coils. Despite softer input costs, margins for re-rollers remain under pressure, squeezed by competitive pricing, weak end-user demand and expectations of heavy duties on their import purchases.
Looking ahead, July consumption for coil derivatives is expected to stay subdued, with distributors reporting medium-to-low stock levels, sufficient to meet the current reduced demand but limiting any near-term restocking activity.
Natalia Capra France
Italy reaches strategic agreement to relaunch green steel production in Piombino
All parties have reached an agreement on a strategic framework to relaunch the steelmaking hub in Piombino, Tuscany, Italy.
The agreement, the result of extensive discussions between the Italian ministry of enterprises and made in Italy, local authorities, the Italian State Property Agency, and the Piombino port authority, represents a key step in the country’s national plan for sustainable steel production.
The deal builds on the process launched on February 19 this year with the signing of a shareholders’ agreement between Ukrainian steel producer Metinvest and Italian plantmaker Danieli, establishing the joint venture Metinvest Adria S.p.A. to build a new low-emission steel plant in Piombino. It also follows the development agreement signed with JSW Italy, a subsidiary of India’s JSW Group, on April 18 for the modernization of the site’s rail production line.
“This agreement is the result of teamwork,” said Adolfo Urso, minister of enterprises and made in Italy, highlighting the importance of coordinated efforts among government, local institutions, and industrial partners. “Today we are looking at the opportunity to create in Piombino one of the most strategic green technology sites in both Italy and Europe,” he added, recalling the critical state of the site two years ago.
Luca Villa, CEO of Metinvest Adria, described the deal as “another concrete step” toward establishing a sustainable and competitive production facility that will serve the broader European steel supply chain. Marco Lerz, head of project finance at Danieli Group, reaffirmed the company’s commitment to bringing cutting-edge green technologies to the site, with a strong focus on efficiency and minimal environmental impact.
The framework agreement will now be presented to trade unions before the formal signing. The overall goal is to transform Piombino into a key European hub for low-emission steelmaking.
