Unstable prices and global competition: a conversation with Pietro Spina (Steelgroup)

As Made in Steel 2025 approaches - scheduled from May 6 to 8 at fieramilano Rho - the industry is turning its attention to an event taking place during a period of uncertainty for the drawn wire market. Faced with international pressure, geopolitical tensions, and unstable raw material prices, European companies are navigating choppy waters. We spoke with Pietro Spina, Sales Manager at ITA Spa (Steelgroup), about the evolving scenario and the outlook for the coming months.

What is the current state of the market?

The market is highly uncertain, both in Europe and globally, especially concerning production costs, with major differences between ore-based and scrap-based wire rod. 

What kind of differences?

For those working with scrap, early 2025 saw particularly high production costs, largely due to rising energy prices. At the start of the year, energy costs peaked at €190/MWh before dropping to the current €87. Today, market signals suggest some easing; Turkish scrap prices are falling, and further drops are also expected.

And what about ore-based wire rod?

Raw material costs for iron ore are relatively stable or slightly declining. Coke, an essential component in ore-based production, has also seen a significant drop. However, steel mills using blast furnaces are facing large investments to switch to electric arc furnaces and direct-reduced iron (DRI), which doesn’t help reduce prices.

Have high-carbon wire rod prices risen in Q2?

Yes, from €50 per ton upwards. This has widened the gap with foreign competitors, making Turkish and Chinese offers more appealing to potential customers, even if European products may offer higher quality.

How are you responding to this competition?

We’re taking action at the European level through the Comité Européen de la Tréfilerie (CET). In a recent meeting in London, we discussed launching anti-dumping actions against China and Turkey. According to our legal advisors, there are grounds to proceed.

What about Trump?

The Trump uncertainty weighs heavily. Even though tariffs are currently suspended or postponed, they remain a concern and could spark a trade war. For companies like ours that export 8–10% of turnover outside the EU, this situation creates instability. There’s a real risk of Chinese trade flows being diverted to Europe, further squeezing the already slim margins of European producers.

What are your expectations for Made in Steel?

We have high expectations. In times of great uncertainty like the ones we are experiencing, face-to-face events are key opportunities to gather insights and get a broader market perspective.

What about the presence of Turkish producers?

They’re definitely the closest challenge. The issue is well-known: Europe is under an embargo on Russian-origin steel, but Turkey continues importing Russian billets, rolling, processing them locally, and then exporting them as “Made in Türkiye.” This creates major competitive distortions.

Are clients asking for more transparency on steel origins?

More and more clients want to know where the steel used in our products (wires, strands, drawn materials) was cast. Today, about 40–50% of our customers explicitly ask this question. It’s a clear sign of growing awareness throughout the supply chain.

How’s demand overall?

Market demand is not brilliant, with an estimated 20–30% year-on-year drop. Some sectors, like electrical and telecom, are holding up, but payment issues persist, particularly in large public projects.

What direction are ITA and Steelgroup heading in?

We are continuing with our investment program, firmly believing that quality is the result of a process involving every stage of production. We are planning to replace certain lines to make them more sustainable and to improve both quantitative and qualitative performance. The entire industrial supply chain is now engaged in the common goal of reducing CO₂ emissions and embracing a greener approach—and we are determined to do our part. In both Italy and Europe, we are recognized for our high quality standards, and we intend to maintain and strengthen this position.