Issues include the cost of energy and the availability of scrap

The Italian electric steel sector needs support in addressing a number of issues. This was discussed at a meeting between representatives of the Italian steelmakers’ association Federacciai and the Minister of Enterprises and Production Adolfo Urso, Borsa Italiana reports.

Despite the fact that the Italian steel industry is a leader in Europe in decarbonization, there are many problems that the sector is facing. Among them is the cost of energy, which is much higher in Italy than in other European industrial countries. In addition, the ETS indirect cost compensation budget is very low compared to European competitors, and calls into question the sustainability of Italian companies in the global market.

Representatives of Federacciai also raised the issue of the current and future scrap shortage. The association believes it is important to include it in the list of strategic raw materials to guarantee stable and inexpensive supplies. In addition, measures should be taken to continue exporting scrap from the EU and Italy to countries that have not joined the Kyoto Protocol. The idea of building new electric arc furnaces without a guaranteed supply of this raw material could further worsen the situation with its availability.

Adolfo Urso emphasized the strategic importance of the Italian steel industry. He assured representatives of the industry association that the government will work to find adequate solutions to support the electric steel sector.

«Even at the European level, the problem of market protection is obvious. In fact, Europe remains extremely permeable to imports, including from subsidized industrial systems that compete unfairly with our production,” said Antonio Gozzi, President of Federacciai.

In his opinion, the goal of strategic security is to return industry to the center of the European agenda, and the steel industry is one of the key sectors.

As GMK Center reported earlier, in January-April 2024, Italian steelmakers reduced steel production by 6% compared to the same period in 2023, to 7.1 million tons. Production of long products amounted to 4.1 million tons (-2.2% y/y), and flat products – 3 million tons (-9.9% y/y).