Steel industry in 2024
2024 was a year of structural crisis for the whole steel industry, both in Italy and beyond. In an international landscape of low demand from steel users, production capacity surplus was even more evident, resulting in a determining impact on the whole value chain. The crisis of the European manufacturers had relevant consequences on every point of the steel supply chain: it is sufficient to mention that some of the steel downstream sectors, such as automotive, electrical appliances and building industries, have suffered from a consumption crisis, with declines in some cases reaching up to 50 percent.
What is more, 2024 saw the end of the post-pandemic economic recovery. We all know some events resulted in a relevant growth in demand and production after the Covid pandemic. However, we witnessed the conclusion of these positive effects in the last 12 months. We have lived under a period of strong contraction, similar to what we were already witnessing before 2020.
Assofermet’s predictions for 2025
Low demand from steel users will continue to have some repercussions for 2025 too. Our predictions are for a continuation of the current crisis in the steel sector. Taking into account the demand declines and the costs steel mills must assume for decarbonization purposes, we should expect a reduction in offers and a rise in prices at the international level. If we add the effects of CBAM and of possible protectionist measures by the new Trump administration, price increases are still more plausible. It will be fundamental to react at the European level. As Assofermet, we believe it is fundamental to adjust the sustainability and energy transition policies of the European Union.
In any case, it is clear that a reshaping of our sector will be inevitable. The steel sector will have to be ready to take the necessary steps to drive the change towards this direction without being overwhelmed by it. This should not necessarily mean a reduction in volumes: it may rather be a stimulus to find new market spaces, to push for a productivity increase and speed up the development of high-added-value products, maybe easing the weight of the commodities that we all treat and transform.
