Italy court upholds Taranto hot-production closure, prompting slab imports

Italy’s highest court upheld the permanent closure of hot-production facilities at Acciaierie d’Italia’s steelworks in Taranto, with the ruling published on 29 October. Italian buyers have begun sourcing imported slabs and are seeking other semi-finished steel to keep rolling operations supplied.

The decision followed legal proceedings over environmental and health requirements at the site. The court’s ruling on those requirements, rather than the EU Carbon Border Adjustment Mechanism (CBAM), was the underlying cause of the closure.

Imports to support rolling operations

Italian buyers are assessing supplies of slabs and other semi-finished products from China, India and Türkiye, as well as weighing imports against purchases of finished steel. The shutdown removes a remaining source of domestic liquid-steel production in Italy and complicates supply for processors with rolling equipment that can make finished material from imported semi-finished steel.

Acciaierie d’Italia’s annual output had fallen to approximately 1 million tonnes, limiting its direct presence in the spot market. The loss of production comes as European buyers face tighter import restrictions and carbon-border costs, adding pressure to supply prospects for Italian processors.

Semi-finished steel and finished hot-rolled or cold-rolled products may face different trade-defence measures, quota arrangements and customs classifications. Exemption from a particular safeguard quota does not automatically exempt a product from CBAM.

Imported slabs must be assessed using their precise CN classification and the EU CBAM rules applicable to their embedded emissions. The sourcing response shows how carbon-border obligations interact with industrial shutdowns and trade restrictions in European steel supply chains.

Supply and price factors

The closure may create additional demand for semi-finished products from Türkiye and other suppliers serving the Mediterranean steel market. Potential gains will depend on shipping costs, available production, product specifications, emissions exposure and the treatment of the relevant customs codes.

The shutdown adds pressure to European steel prices, but any increase cannot be attributed solely to the loss of Taranto output. Demand, energy costs and scrap availability, alongside existing import barriers, remain important determinants of prices.

Serbian steel processors were advised to monitor regional slab, coil and plate prices, particularly if competing suppliers redirect material into Italy.

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