The European Union has officially approved a €390 million bridge loan to support the operational turnaround and environmental compliance of Italy's Acciaierie d'Italia (ADI), formerly known as Ilva. The massive Taranto steelworks is currently running at a critically low annual production capacity of 1.5 to 1.8 million metric tons, relying solely on Blast Furnace No. 4 while Blast Furnaces No. 1 and No. 2 remain idled for extraordinary maintenance. The newly secured state-backed funding is aimed at restarting these idled furnaces, restoring essential coke oven gas treatments, and stabilizing the employment of thousands of workers currently under an extended extraordinary layoff scheme

The European Emissions Trading System (ETS) is under significant pressure from member states due to sharply rising energy costs driven by the tightening supply of certificates, with prices tripling from around €25/t CO2 in 2019 to approximately €75/t in 2025. With the ETS scheduled for a major revision by July 2026, several EU countries led by Italy recently called for the review process to be suspended. Last week, Polish President Karol Nawrocki went a step further, urging his government to advocate for the complete abolition of the ETS to prevent further industrial relocation outside the EU. Industry experts note that any modification, suspension, or national exemption of the ETS would have immediate and direct consequences for the Carbon Border Adjustment Mechanism (CBAM).

Italy’s crude steel production increased by 8.1% month-on-month in February 2026, signaling a recovery in Southern European industrial activity. This rebound follows a period of stabilization and reflects improved demand from domestic manufacturing and construction sectors as energy price volatility subsides. The increase in output from Italian mills contributes to a moderately positive outlook for non-Chinese steel demand in 2026, which is projected to grow as interest rates decline and borrowing costs for major infrastructure projects soften globally.

European solar auctions and corporate PPAs added 92 GW of new capacity between 2022 and 2025, according to SolarPower Europe. After earlier struggles, auction-driven deployment rebounded to a record 25.2 GW in 2025, a 23% year-on-year increase. Meanwhile, corporate PPAs saw mixed results across the continent—dropping 56% in Germany but remaining strong in Spain, Italy, and Poland. Despite utility-scale growth, total EU solar installations in 2025 experienced a slight 0.7% decline to 65.1 GW. This marks the first annual drop since 2016, driven primarily by softened residential demand. With total capacity now at 406 GW, industry reports warn that reaching the bloc's 750 GW target by 2030 will require renewed policy support to address 'persistent inefficiencies' in auction designs.

【SMM Steel】Talks between Thyssenkrupp and Jindal Steel over TKSE since autumn continue with no formal offer yet. US fund Flacks Group said it is prepared to bid if current negotiations fail. Flacks, focused on distressed assets, was picked by Italy for exclusive talks on Acciaierie d'Italia in Dec. It remains focused on Italy but monitors major steel firms.

[SMM Lead Morning Meeting Minutes: Mixed Macro News, Lead Prices Continued to Consolidate] Premier Li Qiang delivered the Government Work Report: China’s 2026 economic growth target was 4.5%–5%, with the deficit ratio at around 4%. At present, the impact of the Chinese New Year holiday on the domestic market has largely dissipated, except that maintenance at some lead smelters has yet to resume…