The decrease in Italy's steel production points to significant developments in the country's steel sector. The decrease is attributed to factors such as global economic fluctuations and the increase in energy costs.
In the first seven months of 2024, production decreased by 5.4% on annual basis to around 12.5 million tons. This data indicates that the Italian steel industry has had a more difficult time than expected in its post-pandemic recovery. It is noted that the performance gap between flat and long products is particularly striking.
Flat steel production decreased by 16.8% to 716,000 tons in July, while 5.2 million tons were produced in the first seven months of the year, a decrease of 10.7%. In contrast, long products increased by 4.2% to 1 million tons in July and by 0.7% to 7.4 million tons in the first seven months. It is a challenging time for the Italian steel industry, especially with the increase in energy costs, difficulties in raw material supply chains and decreasing demand worldwide.
Over the last few years, Italy's steel production has been on a steady downward trend. In 2022, production decreased by 11.5% to 21.6 million tons, while in 2023, the decrease was 2.5%, bringing production down to 21 million tons.
In this context, the future of Italy's steel industry is likely to be shaped by investments to improve energy efficiency, its orientation towards sustainable solutions such as green steel production, and how quickly it can adapt to changes in global markets.
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