The inaugural Siderweb 2024 forum has set the stage for a comprehensive dialogue on the current and future landscape of the steel industry in Italy and Europe. With over 500 participants, the event drew key representatives from major market players, including Marcegaglia, Danieli, and Tata Steel. The forum addressed critical topics such as global challenges, geopolitical influences, and recent scientific advancements in steel production and construction.
A highlight of the event was the roundtable discussion titled “Steel in Italy and the World: A Roundtable on the Future Challenges of the Industry,” featuring prominent figures like Yuriy Ryzhenkov, CEO of Metinvest; Alessandro Brussi, chairman and CFO of Danieli; Fernando Espada, president of Eurometal and CEO of Tata Steel Distribution Spain; and Antonio Marcegaglia, president and CEO of Marcegaglia Steel. This panel provided a platform for industry leaders to share insights on the ongoing crisis in the global steel market.
During the discussion, Ryzhenkov highlighted the cyclical nature of the steel market, noting that it peaked in late 2021 and early 2022. Since then, the industry has faced significant challenges due to the war in Ukraine, an escalating energy crisis, supply chain disruptions, and increasing global economic uncertainty. He emphasized that the years 2022-23 were particularly challenging as the world grappled with the repercussions of the conflict in Ukraine, and now the military situation in the Middle East has further complicated matters.
In adapting to these new realities, Metinvest has seen improvements in its financial results from a low base in 2023. The group has focused on building new logistics networks and forging strategic partnerships to navigate the ongoing downturn. Ryzhenkov remarked, “In my view, we are experiencing the longest downturn in the steel cycle in the last 20 years. It has been ongoing for more than three years. A turnaround in the market and a revival in consumption should occur in 2025.”
He drew comparisons to previous downturns, noting that earlier cycles were much shorter, lasting less than a year and a half in the early 2000s and only a few months during the 2008-09 financial crisis. This current protracted downturn signals significant challenges for the industry.
Ryzhenkov pointed out that the European steel market has been particularly volatile over the past year, with imports now comprising over 27% of Europe’s apparent steel consumption. Factors such as high energy prices and ongoing conflicts have contributed to this instability, complicating the operational landscape for steel producers across the continent.
Looking ahead, Ryzhenkov expressed cautious optimism about potential market recovery. He hopes that recent actions by the U.S. government to lower interest rates, along with stimulus measures introduced by the Chinese government, will foster conditions for a turnaround in the steel market. The discussions at Siderweb 2024 have underscored the importance of collaboration and innovation in navigating the complexities facing the steel industry today.
