Rising energy costs are putting increasing pressure on the Italian steel industry, with tangible consequences for production continuity. Major steelmakers affiliated with the Italian steelmakers' association Federacciai have already suspended operations or are gradually shutting down their plants due to rising electricity and gas costs. This was stated in a press release issued on November 10 by Federacciai which warned of mounting difficulties facing the country's steel industry.
According to Federacciai, current energy price levels make it economically unsustainable to maintain production operations over extended periods, further widening the competitive gap between Italian steelmakers and their European counterparts. This situation is particularly challenging for an industry that ranks among the most decarbonized in Europe but continues to face significantly higher energy costs than its competitors.
In light of the worsening situation, Federacciai has announced plans to request an urgent meeting with the Fiom, Fim and Uilm trade unions in the coming days. The aim is to outline the economic and operational difficulties facing the sector and discuss the potential implications for the stability and competitiveness of the Italian steel industry.
As previously reported by SteelOrbis, Federacciai had already warned in September that further increases in energy prices could jeopardize production continuity at Italian steelmakers. At the time, the association highlighted the significant energy cost differential compared to other major European markets, noting that the average electricity price in the Italian market (PUN) had reached €202.89/MWh in the first week of September, up from €194.14/MWh in the previous week. On September 10, the PUN had climbed further to €228.80/MWh, well above the levels recorded in Germany, France and Spain.
Among the measures requested by the association are the continuation of existing mechanisms aimed at containing energy costs for energy-intensive industries and action at the European level regarding the EU Emissions Trading System (ETS). In particular, Federacciai has called for a temporary suspension of the ETS for gas-fired power plants throughout the energy emergency.
The production stoppages announced, therefore, mark a further deterioration in the situation already highlighted in recent months, bringing the operational impact of high energy costs on the Italian steel industry into sharper focus. Developments in electricity and gas prices, together with discussions between the association and trade unions, will be key factors in assessing the sector's production outlook in the coming weeks.
