During the 2025 edition of Made in Steel currently taking place in Milan, Giuseppe Pasini, chairman of Feralpi Group and president of Confindustria Lombardia, delivered a sharp and passionate analysis of the steel industry. Speaking during a panel titled, “Market and beyond: trends and prospects for steel and carbon”, Mr. Pasini addressed the current economic climate, European industrial policy, and the green transition, while voicing pointed criticism toward the EU regulatory framework and speculative dynamics threatening the competitiveness of the continental steel sector.
A market searching for stability
“Talking about the market right now is not easy, because we’re facing a period of great uncertainty,” Pasini opened, referring in particular to construction steels. “Thanks to the National Recovery and Resilience Plan, consumption in Italy is holding up. It held up in 2024 and is continuing to do so in the early months of 2025. But we’re seeing a clear downturn in the residential sector, triggered by the aftermath of the 110 percent bonus and persistently high interest rates.”
Macroeconomic uncertainty is compounded by administrative inefficiencies and structural issues in Germany, Mr. Pasini said, adding “It’s a country in need of massive infrastructure investment after years of stagnation. There’s talk of €1 trillion in funding, half for defense and the rest for infrastructure and digitalization. If well-managed, this could represent a major boost for our sector as well.”
Despite these challenges, EUROFER is forecasting a slight stabilization in steel demand for the second half of 2025, while attention outside the EU focuses on mounting pressure from China. “China is already entering our markets in force. It’s a real threat, especially in a context of increasing regionalization of trade flows,” Pasini noted.
Green steel and scrap: the key issues in the EU plan
A significant portion of Pasini’s speech was devoted to the European Steel Action Plan, which he openly criticized, stating, “The measures are extremely timid. There’s no point in identifying the problems without offering solutions. We, as entrepreneurs, deal with that every day, while Europe continues to drag its feet.” One of the core issues remains the handling of ferrous scrap, he pointed out, adding, “If we really want to produce green steel, scrap must remain in Europe. It makes no sense that 18 million tonnes are exported every year, 60 percent of which goes to Turkey. And the ships transporting this material don’t pollute? That’s a glaring contradiction.”
Pasini also highlighted Italy’s leadership in decarbonization, stating “Ours is the most sustainable steelmaking industry in Europe. 90 percent of our production comes from electric arc furnaces. It’s unacceptable that shipping and financial lobbies outweigh industrial producers in influence.”
FERGreen: Feralpi’s tangible response
Against this backdrop, Pasini presented FERGreen, the new strategic initiative launched by Feralpi Group at Made in Steel. The platform brings together all the group’s sustainability-related projects, aiming to reduce the carbon footprint of production processes and enhance the circular economy model. The plan includes investments in plants, technologies, digitalization, by-product recovery, and alternative energy sources – a concrete example, he said, of how industry can lead the transition without waiting for top-down intervention.
Defending European manufacturing
Pasini emphasized that the battle for green steel is also a cultural one. “Europe seems to have forgotten its industrial roots. We are heading toward an increasingly financialized model, when what we need is a revolution in industrial thinking. We can no longer accept that our green electric plants pay the highest energy prices in the EU,” he commented.
His message was clear: a level playing field is essential. “This is not about protectionism,” he explained, “but about fairness. Today, we are no longer competitive outside Europe: raw materials, scrap, and energy costs are penalizing us too heavily. Europe remains our reference market, but it must be shielded from growing external aggression.”
The strength of Italian steel
Looking ahead, Pasini expressed confidence in the sector’s resilience, stating, “Italian entrepreneurs have shown they can respond, innovate, and endure. Our workforce is skilled and adaptable - a crucial asset in a volatile market.”
He concluded with a shared call to responsibility: “We must continue to believe in industry. Made in Steel is the ideal forum to reaffirm that steel is not just a raw material - it is culture, competence, and future. And the ‘beauty of steel,’ this year’s theme, lies above all in its resilience.”
