Ex-Ilva ordered to suspend production?

Research evidence excerpt

Ex-Ilva ordered to suspend production?

Update

July 27, 2026 09:42 PM GMT

Morgan Stanley & Co. International plc+MCarbon Steel | Europe Alain Gabriel, CFA

Equity Analyst

Ex-Ilva ordered to suspend Alain.Gabriel@MorganStanley.comIoannis Masvoulas, CFA +44 20 7425-8959

Ioannis.Masvoulas@morganstanley.com +44 20 7425-0427

production? Adahna Ekoku

Adahna.Ekoku@morganstanley.com +44 20 7425-0578

Ferdinand Huber

Research Associate

What's new? According to Argus and local press, Milan’s Court of Appeal has Ferdinand.Huber@morganstanley.com +44 20 7677-2702

ordered Acciaierie d’Italia (ADI) to suspend the entire hot end of the former Ilva Carbon Steel

works at Taranto within 90 days, after finding that the 2025 environmental permit Europe

Industry View In-Line

did not adequately address remaining asbestos and fine-particulate risks. The ruling

raises the prospect of a significant supply disruption at one of Italy’s largest

steelmaking assets - with a 2026 target production of 4mtpa or ~3% of EU27 total

production. The complex has a total nameplate capacity of ~11mtpa or ~5% of EU27

total. This new development also adds uncertainty to government efforts to find an

investor for ADI. The company has not commented on this news.

Implications for European steel. A prolonged stoppage at Taranto would remove a

major source of Italian steel production, further tightening already constrained

supply across Italy and the wider European market. With limited alternative EU

capacity available at short notice and restrictive safeguards/tariffs constraining

imports, such a disruption would stretch lead times and lift prices further. This

would compound existing supply pressures, limiting the market’s ability to offset

lost output through imports. ArcelorMittal remains our preferred play on the