Italy’s steel industry federation, Federacciai, has warned that a sharp increase in electricity and gas prices has forced several major steel producers in the country to suspend operations or gradually reduce production.
According to Steel World Review, citing Reuters, the industry association said on Tuesday, 10 November, that rising energy costs had made continued production economically unviable for some Italian steelmakers.
The warning comes as electricity and gas prices have become one of the main challenges facing Italy’s energy-intensive industries, increasing operating cost pressures on manufacturers.
According to the Italian steel federation, several major companies in the sector have suspended their operations, while others are gradually cutting production.
The Italian newspaper la Repubblica, in a report published on 11 November, also referred to the federation’s warning, noting that some steel companies are selling their products at prices below their variable production costs. This means that continuing operations entails losses.
These developments come as the Italian government seeks to mitigate the impact of rising energy prices on household and business bills. On 9 November, the government approved measures to limit the effect of higher gas prices on electricity costs.
Despite these measures, Federacciai’s latest warning indicates that energy costs remain an immediate challenge for Italian steel producers.
Sources: Reuters, 10 November 2026; la Repubblica, 11 November 2026.
