The Italian steel industry is coming to a halt due to the enforcement of the mandatory green pass from 15 October in workplaces including mills and warehouses.

Congestion at ports and at plants, where hundreds of workers need tests before entry, is causing a significant slowdown in both the flat and long product segments, creating uncertainty over mills’ production schedules.

Sources in the industry say the congestion is due to truck drivers who receive or discharge material at ports, mills, scrap merchants’ yards and distributors not being equipped with the green pass. Truck traffic on motorways was much lower than normal on Friday compared to normal.

Outside some mills in the north of Italy, Covid-19 tests are being given to employees without the green pass to be able to access the premises. This creates long queues and production disruptions due to the lack of vaccinated employees.

Scrap yards are encountering the same difficulties receiving material and some Italian mills are said to be trying to source as much scrap as possible.

As production activity is being challenged by both high energy costs and the green pass situation, steel buyers’ main concern is receiving their orders, while mills and merchants also fear for their scrap procurement, Kallanish hears.