Italian steel producers' association Federacciai has stated that it expects Italian crude steel production will decrease by about 17 percent this year (compared to 23.2 million mt in 2019) and has asked the Italian government for a strategic plan for the domestic steel industry, on the model of the one developed by the German government to help its steel sector overcome the pandemic crisis. SteelOrbis discussed these matters with Federacciai general director Flavio Bregant.
"After the 40 percent decrease recorded during the months of the lockdown, Italian production of crude steel has recovered partially, recording a 17 percent decrease in August, and now we are hopeful we will close this year with a similar change compared to 2019," Mr. Bregant said. He underlined, “Companies linked to the automotive sector certainly lost a lot in the first part of the year while now, thanks also to incentives by the government, they are catching up. The construction sector has performed a little better overall."
As mentioned, Federacciai is pressing the Italian government to implement a plan for the steel industry as it is a strategic sector. «The German government with the local steel association has created a strategic plan for the sector," the Federacciai official stated. "For Italy, which has the second largest steel industry in Europe, we are asking the same". More specifically, the association hopes for "help for the downstream sectors, i.e., support for the automotive sector, construction, the unblocking of projects, all in order to restart our economy."
According to Federacciai, however, the sector must be supported not only by the Italian government but also by Europe. The EU safeguard on steel, the Federacciai director general explained, "worked in part and depending on the product". Furthermore, "next year the United States will maintain their safeguard, while the United Kingdom will apply its safeguard after Brexit and is already aiming to extend it beyond the middle of next year. Therefore, commercial distortions will continue to exist," he stressed. "We are asking Europe to renew its safeguard, possibly adjusting it where necessary, also to avoid distortions," he said, in particular, because "China, India and Turkey are continuing to produce more." He recalled that, despite the lockdown, China recorded an increase in production in the first eight months (+3.7%). "In our opinion, if we do not eliminate the distortions that remain and if we let the EU safeguard disappear, the trade defense instruments, which are not very effective and take a very long time, definitely will not be enough," Bregant stated in conclusion.