The second day of the European Steel Forum, organized by AIST (Association for Iron & Steel Technology) in collaboration with Danieli in Udine on October 27-28, opened with the Industry Leader Panel, featuring Marco Di Giacomo, CEO of Acciaierie Bertoli Safau S.p.A., Jean Arribe, Group CTO Steelmaking Expert at ArcelorMittal Luxembourg, and Yury Krotov, Vice President, Long Products Steel Operations at Steel Dynamics, Inc. The discussion was moderated by AIST's John Ball.
The discussion highlighted that the steel industry's transformation depends on its ability to combine decarbonization with competitiveness and resilient industrial supply chains. Investment in new plants is essential, but affordable energy, access to raw materials and a manufacturing base capable of sustaining demand are equally necessary. While European and US perspectives reflected different market conditions, participants identified shared priorities: strengthening supply chains, improving safety and making plants more efficient through innovation.
Competitiveness depends on the entire value chain
The future of the European steel industry is closely tied to that of downstream industries. This view was shared by Arribe and Di Giacomo, who stressed that safeguard measures can support operations in the medium term, but the sector's survival requires lasting competitiveness.
“We need to understand our level of competitivity against the Middle East, Asia and India, and how we can support the downstream industry, because the lack of basic offer of downstream products will lead to a decrease of capability in Europe,” Di Giacomo stated.
Offering a US perspective, Krotov expressed confidence in manufacturing's renewed strategic importance and growth prospects. He also challenged the perception of steelmaking as an industry reliant on outdated production methods, noting that continuous innovation in technologies and processes makes the sector more dynamic than it is often perceived to be.
Europe and the US seek common ground
Trade relations between Europe and the US remain complex. According to Arribe, pursuing a comprehensive political agreement from the outset could be too ambitious. A gradual approach built on practical measures could offer greater scope for progress, from mutual recognition of certifications to more consistent standards for low-carbon steel.
Di Giacomo emphasized the need to re-establish common interests, while acknowledging that the two sides' positions still appear far apart. Krotov identified a basis for cooperation in shared free-market principles and the need to preserve manufacturing supply chains and technological expertise.
“When a non-free economy enters the picture, you need to put measures to protect your system. I do believe the US has a lot in common with Europe, Canada and Mexico, starting with a manufacturing base and innovation base that we need to make sure to nourish,” Krotov stated.
Building on these shared interests could support a more practical dialogue on protecting their respective industrial bases.
Scrap as a strategic resource
The transformation of production processes is bringing raw material availability into sharper focus. Growing interest in electric arc furnace steelmaking as a decarbonization route makes securing scrap supplies increasingly important. Vertical integration and the expansion of ferrous and non-ferrous recycling activities address this need. European governments and institutions are paying greater attention to the issue, while questions remain over how to ensure sufficient availability for the continent's industry.
Arribe noted that the transition is changing sourcing requirements even for groups with well-established conventional supply chains. Investments in mineral resources help secure supplies for blast furnace production, while further work is needed to obtain the inputs required for lower-emission processes.
Energy and infrastructure shape the transition
Companies' resilience also depends on the infrastructure supporting their operations. Di Giacomo distinguished between a company's ability to respond to disruption and the structural conditions of the wider system. Producers can prepare to manage interruptions, but their options are more limited when problems involve power grids or other infrastructure.
Against this backdrop, Europe's push for electrification must take account of electricity costs and the ability of grids to accommodate changing patterns of consumption and generation. Di Giacomo also raised concerns over the impact of the Carbon Border Adjustment Mechanism (CBAM) on certain ferroalloys.
For ArcelorMittal, Arribe explained, mitigating risks involves diversifying suppliers geographically and coordinating expertise across the group. Managing port infrastructure also helps ensure that products reach their destinations reliably.
On energy, Krotov outlined a strategy encompassing long-term nuclear power purchase agreements, investment in renewables and projects at plant level. Supply security and emissions reductions are therefore becoming part of the same industrial planning process.
AI supports knowledge transfer and new skills
Artificial intelligence applications are at different stages of development across the companies. Di Giacomo described AI as a tool with significant potential that ABS is still learning to integrate fully into decision-making and development processes, with plans to use it in analysis relating to its new plant.
Arribe outlined several ArcelorMittal pilot projects, including chatbots that help operators troubleshoot problems and tools for searching the group's information resources. One particularly significant application involves knowledge transfer: the expertise of an employee approaching retirement was used to train an AI system to support the onboarding of younger colleagues.
Krotov then highlighted digitalization's contribution to attracting younger generations. Showcasing the opportunities offered by AI, automation and the Internet of Things can help raise awareness of the steel industry's technological capabilities. He also stressed the need to accompany experimentation with clear guidelines on how these tools should be used.
The discussion pointed to a transition involving the entire industrial system. More advanced technologies create new opportunities, but their effectiveness depends on access to energy, secure raw material supplies, adequate infrastructure and workforce skills. For Europe in particular, maintaining a strong manufacturing value chain remains crucial. Investment in decarbonization and innovation will need to translate into a stronger ability to produce, compete and sustain employment over the long term.
