Italian metals distributors, traders and processors' association Assofermet has expressed “deep concern” over the potential impact on the domestic steel supply chain following the Milan Court of Appeal's decision to reject a request to suspend the ruling requiring the shutdown of the hot-end operations at the former Ilva steelworks in Taranto by the end of October.
Following the decision, Acciaierie d'Italia (ADI) plans to begin cooling down its blast furnaces as early as September 16. According to the company's schedule, the process will start with BF No. 1, which is currently being kept in preheating mode, followed by BF No. 4, which is currently idle, and finally BF No. 2, the only blast furnace currently in operation. According to the technical assessments cited by Assofermet, once the cooling process has started, restarting the blast furnaces would be extremely complex and difficult to sustain from both a technical and economic standpoint.
Assofermet warns of risks to domestic steel capacity and security of supply
Assofermet highlighted the strategic importance of the Taranto site, which is currently Italy's only integrated steelworks capable of producing primary steel from iron ore. The plant is also at the heart of a broader industrial network, supplying coils and semi-finished products both to the market and for further processing at the company's facilities in Genoa and Novi Ligure.
The association, and in particular steel distributors, service centers and flat steel pre-processors that have historically sourced material from Taranto, warned that the shutdown of the hot end could lead to a structural reduction in Italy's steelmaking capacity and increase the country's reliance on imports. According to Assofermet, the consequences would extend beyond material availability, affecting procurement costs, security of supply and the competitiveness of downstream manufacturers.
The issue is particularly significant against the current European trade backdrop. Assofermet noted that, as of July 1, the new EU steel safeguard regime has significantly reduced available import quotas and raised the duty on out-of-quota volumes to 50 percent. According to the association, a simultaneous reduction in domestic production capacity and more restricted access to non-EU supplies could therefore create significant pressure on steel availability for Italy's manufacturing sector.
The impact would be particularly relevant for strategic downstream sectors including automotive, household appliances, mechanical engineering, energy and construction, all of which depend on a reliable supply of steel and high-quality steel products.
Former Ilva remains at center of Italy's industrial debate
As previously reported by SteelOrbis, Federacciai and 14 Italian steel producers had submitted an expression of interest for the former Ilva's cold rolling facilities, while excluding the hot-end operations from the scope of their proposal. At the same time, Indian steelmaker Jindal had confirmed its interest in acquiring the former Ilva assets as a whole, including the hot-end operations.
Against this backdrop, Assofermet has called on the Italian government to act urgently to identify a credible long-term industrial solution capable of combining health and environmental protection, decarbonization, employment safeguards and continuity of domestic steel production. The association stressed that Italy cannot afford to give up domestic production of high-quality steel at a time when Europe is seeking to strengthen its industrial autonomy and economic security.
