Federacciai and Assofond point to high energy costs in Italy

The Italian steelmakers’ association Federacciai and the foundry association Assofond have pointed to a significant difference in energy prices between Italy and the rest of Europe, Kallanish reports.

This situation continues to have a significant impact on the competitiveness of the local steel industry.

Assofond President Fabio Zanardi and Federacciai Chairman Antonio Gozzi are calling on the authorities to speed up the implementation of measures aimed at reducing gas and electricity prices in Italy and bringing energy costs in line with other European countries.

According to Gozzi, Italy pays €40 more per MWh than other European countries, and this situation is not acceptable. Italy’s «energy release» scheme, which could have provided a lower cost for energy-intensive industries, has been postponed

President Federacciai also added that in order to encourage energy-intensive industries to reduce emissions, the tax under the EU Emissions Trading System (ETS) should be revised and managed at the European level.

According to Gozzi in an interview with Corriere della Sera, Germany has been authorized to receive €3 billion in ETS compensation over three years, while French businesses receive €1.2 billion annually in compensation. Meanwhile, Italian companies will receive €150 million this year and €300 million in 2025.

In turn, Fabio Zanardi said in an interview with La Stampa that Italian foundries are facing a sluggish market, and the current year has started poorly for the sector. In the first quarter of 2024, production fell by 10% year-on-year and turnover by 12%. There are no signs of recovery, as orders have been falling since 2023, and the last positive quarter was the first quarter of last year.

In addition to high energy prices, ETS and the competitiveness of the local foundry sector, Zanardi’s concerns are related to the supply of raw materials. The situation with pig iron supplies has improved after the shortage that occurred in 2022, but supplies from Russia are expected to decline due to quotas under European sanctions. According to the president of Assofond, it is crucial to explore alternative supply channels.

Earlier, Federacciai pointed to the need to support the Italian electrometallurgical sector. The problems include the cost of energy and the availability of scrap.