Italy Steel Production Declines 9% in June 2025 Amid Sector Headwinds

Monthly Drop in Italy Steel Production Highlights Market Volatility

Italian steelmakers reduced steel production by 9% month-over-month in June 2025, reaching 1.78 million tons. This decline also marked a 3.2% year-over-year drop, according to data from Italy’s Federacciai and reported by SteelOrbis. The decrease reflects seasonal slowdowns and persistent weakness in downstream industries, especially automotive and manufacturing.

However, production over the first half of 2025 remains positive. From January to June, Italy’s total crude steel output rose 2.9% compared to the same period in 2024, totaling 11.1 million tons. This recovery suggests a broader stabilization in domestic steel demand despite short-term fluctuations.

Flat steel output in June climbed 6.6% year-over-year but dropped 12.6% compared to May, settling at 720,000 tons. Meanwhile, long steel products declined 8.3% month-over-month but rose 2.3% from a year earlier, totaling 1.1 million tons. These trends point to uneven recovery across steel product categories.

Italy Steel Production Faces Automotive Weakness and Import Competition

Italy’s steel sector remains exposed to fragile downstream markets. In 2024, national steel output declined 5% year-over-year to 20 million tons. The flat products segment—serving the automotive and industrial sectors—shrunk 9.7% in 2024, pressured by weak auto demand and rising import volumes.

Long steel production, however, proved more resilient. It declined only 0.2% last year to 11.7 million tons, supported by higher construction activity across the country. So far in 2025, long product production remains relatively stable, up 0.4% year-on-year through June.

Globally, steel output dropped 0.9% in 2024 to 1.84 billion tons, while EU steel production rose 2.6% to 129.5 million tons. Italy’s monthly output trends continue to reflect broader regional dynamics—modest recovery tempered by lingering structural challenges.

SuperMetalPrice Commentary:

The 9% drop in Italy steel production during June 2025 underscores the sector’s sensitivity to end-user demand and external shocks. While H1 figures show growth, the flat steel segment’s vulnerability to auto sector weakness and cheap imports remains a concern. For Italian producers, the focus should now shift toward enhancing competitiveness, particularly in flat steel processing and value-added exports. Strategic alignment with EU-wide green steel initiatives and trade policy reform may be key to long-term recovery and market share retention.