At the international trade fair Wire&Tube 2026, taking place in Düsseldorf on April 13-17, SteelOrbis had the opportunity to interview Giuseppe Pasini, president of Italy’s Feralpi Group, about a number of topics, and especially electricity prices for the Italian steel industry.
Despite the complex conditions of the steel segment in Italy, Federacciai's data show that steel production in the country has remained roughly stable over the last five years, with the exception of 2021, when it was higher than average. How do you explain this?
If we look at Italian steel production, it has actually remained fairly stable in the past five years. On the other hand, the decline in German steel production is worrying, having lost four or five million mt. All in all, Italy maintains good production volumes also thanks to consumption from the construction sector, which has improved helped by the PNRR [National Recovery and Resilience Plan], and the influence of European funding will also be seen in 2027. So, the forecast is good, despite the complexity of external factors that could generate a slowdown in the economy in general.
Currently, what do you think are the main critical issues that the Italian steel sector has to face, and how do you think they can be managed? What, on the other hand, are the strengths that can be leveraged?
Let's start with the strengths. First of all, the steel industry in Italy is mostly private, and large investments have been made by companies in the field of decarbonization, energy efficiency and innovation, and this means that there is confidence in the sector. The critical point is certainly the cost of energy in the first place, which is a national emergency, because Italy pays 30-40 percent more than the EU average. We face an energy emergency every time an external event occurs. It happened with the war in Ukraine, now with the Gulf crisis... We are asking to have energy costs that would guarantee companies’ competitiveness, and fair prices for industries compared to Europe, even though the problem does not only concern energy-intensive companies, it also affects SMEs and families, which is why it is a national emergency.
The recent escalation of conflict in the Middle East has, as we know, generated several questions as well as difficulties, especially with regard to increases in operating costs for companies. In particular, the costs of gas, and therefore indirectly of electricity, have risen significantly since the end of February. How and to what extent does this factor affect production processes and margins today? What other consequences have you detected or do you think will come from the ongoing conflict?
In addition to the increase in energy prices, there is also an increase in commodity prices, so, for example, scrap, aluminum and consequently steel itself. We trying to defend ourselves by raising product prices, because costs have almost doubled since the beginning of the conflict. Gas has gone from €35/MWh to almost €50/MWh. These costs are unsustainable for us and for customers, and, even if they try to pass them on, how long can the situation be sustainable?
Do you think that Europe as an institution is present enough in supporting the steel supply chain at this delicate time? What do you think of the recent proposals to suspend ETS allowances? Do you think that the EU will bring concrete proposals to reduce electricity prices for industries, as recently emerged?
We are broadly in favour of safeguard measures; 18.5 million mt is a fair quota. The EU has lost 40 million mt of steel production in the past six to eight years. If the situation goes on like this, we will be forced to buy steel from abroad.
And that is exactly what EUROMETAL was saying yesterday [April 14, 2026].
Exactly, and we are pleased that EUROFER's requests have also been accepted. As for CBAM, it is a useful tool for making green steel circulate, but it is also fair that producers outside Europe should implement decarbonization plans towards green steel, just like Europe is doing. However, I realize that it needs some revision, because in some cases it fails to offer complete protection. Overall, however, it is a useful tool to safeguard the environment and the steel industry. Feralpi is already active in this direction with FERGreen products.
Finally, the first quarter of 2026 has just ended, i.e., the first three months of the CBAM regulation in its full application. What are its visible effects, if any, and what do you expect to change in the future?
Some effects are already emerging. Imports of semi-finished products from some countries have already stopped. However, 2026 is still a pilot year for CBAM. We will need more time to see what other effects it will have on the market.