Italian ceramics industry urges EU rule overhaul as energy costs and weaker exports squeeze margins
Italian ceramic-tile producers are calling for changes to EU emissions rules as gas and carbon costs rise. European demand supported first-half sales, but exports to the Americas declined and producers struggled to pass higher costs to customers.
European sales support a fragile first half
Italian ceramic-tile producers are pressing the European Union to revise energy and emissions rules as higher costs collide with weaker demand in the United States and Gulf countries. Data compiled by Confindustria Ceramica and reported by Il Sole 24 Ore show that exports to the EU increased by 4.8% in volume and 3.4% in value during the first half, exceeding €1.5 billion. The source reported EU shipments of 94.3 million cubic metres. Sales to the rest of Europe rose by 2.9% in volume and 1.6% in value.
Italy’s domestic market was broadly stable, with volumes up 0.7% and value down 0.8%. Europe was the main reason the industry maintained overall sales: Italian producers sold almost 200 million square metres of tiles worldwide, including Italy, an increase of 1.2% from the first half of 2025. Revenue exceeded €3.2 billion but declined by 0.6%, highlighting pressure on average selling prices.
Americas and Gulf markets weaken
The divergence between volumes and revenue is more pronounced outside Europe. Exports to the Americas totaled €414.3 million in the first six months, down 8% from the same period of 2025, while volumes fell by 4.3% to 22 million cubic metres, according to Il Sole 24 Ore. The United States alone represents about €700 million in annual exports for the industry. In 2025, US-bound volumes declined by only 0.2%, but export value fell by 5.1% as companies reduced prices to defend their market positions.
Confindustria Ceramica president Augusto Ciarrocchi said the United States and Gulf countries, previously among the strongest or most promising markets, were contracting sharply. Potential growth in Mercosur countries was not enough to compensate. The article linked the deterioration to US tariffs and the war in Iran, while competition from India, Turkey and China continued to intensify. Producers have found it difficult to transfer rising manufacturing costs to customers.
Gas and carbon costs drive calls for reform
Gas prices increased from about €30 per MWh at the start of the year to €70 per MWh, a major burden for an energy-intensive industry. Confindustria Ceramica director general Armando Cafiero said higher gas prices and rising EU Emissions Trading System allowance prices were adding 15-20% to company costs. The sector says no commercially available technology can yet replace methane in ceramic kilns, although companies are monitoring alternatives such as biomethane.
In Italy, the association is seeking immediate and full implementation of the Bollette Decree, including measures to narrow the gap between the Dutch TTF gas benchmark and Italy’s PSV hub. It estimates that the Italian spread is about €4 per MWh compared with European competitors. In Brussels, the industry wants fuel benchmarks used to allocate free carbon allowances revised and is also calling for a fundamental review, or removal, of ETS2. The demands were due to be discussed at Cersaie in Bologna, where producers planned to argue that research, design and innovation cannot offset energy and regulatory disadvantages without a viable substitute for natural gas.
