Editor's Note
This editor’s note highlights the key facts and market implications behind “Energy and Geopolitical Tensions Alarm the Ceram”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
The Challenges of Ceramics
Energy and geopolitical tensions are alarming the ceramic industry.
“Energy costs European producers three times more than the rest of the world, and Italian companies pay 50% more than their European competitors,” said Ciarrocchi (Confindustria Ceramica).
The issue of energy costs remains the primary concern for Italian companies in the ceramic industry. This is demonstrated by the fact that energy will be the topic of the inaugural conference tomorrow, kicking off the 42nd edition of Cersaie, the international trade fair for the sector. The event will be hosted at the Bologna Fiere exhibition halls until September 26, with 620 exhibitors expected, nearly 40% of whom come from 29 foreign countries.
American tariffs (set at 15%, compared to the 8.6% duties already in effect) add fuel to the fire of difficulties in this historical phase, not to mention geopolitical tensions in many strategic markets for this sector, and the slowdown of the domestic and European market. But the energy issue remains at the center of companies' concerns, as explained by the president of Confindustria Ceramica, Augusto Ciarrocchi, because high costs risk slowing investments and undermining the competitiveness of Italian companies, already grappling with fierce competition from low-cost producers like the Chinese and, increasingly, the Indians.
But let's proceed in order and look at the data. The Italian ceramic industry (about 250 companies employing nearly 26,000 workers in the tile, sanitary ware, tableware, brick, and refractory materials sectors) has shown great resilience even in the last year and a half, which has not been easy for many other Italian manufacturing sectors. Total turnover in 2024 stood at 7.58 billion euros, in line with 2023 values, with a positive trade balance of 5 billion. The first half of 2025 also recorded an increase in production volume compared to the first half of last year, albeit with a reduction in value terms, as already happened in 2024, particularly for the tile sector, which, with over 6 billion euros in turnover, represents the most important segment of the ceramic industry.
“To maintain our positions in international markets, where we generate 82% of our revenue, it was necessary to lower prices,” clarified Ciarrocchi, explaining the drop in turnover despite an increase in volumes: in 2024, sales of Italian tiles reached a total of 378.3 million square meters, up 2.5% compared to 2023, while revenues fell by 1.8%.
Low-cost productions are now also a concern due to their potential increased sales to the European Union, following Trump's protectionist measures. Beyond the direct effects on sales of Italian-made ceramics in our industry's most important non-European market, US tariffs could indeed push Chinese and Indian producers to direct their goods towards EU countries, also taking advantage of the limited measures protecting European production.
“Despite the slowdown in recent years and the difficulties of our main partners, France and Germany, Europe remains a hugely important market, with over 400 million inhabitants, taste and spending power ideal for made-in-Italy products,” observes Ciarrocchi, who also highlights signs of recovery in German demand in recent months. “We cannot think of allowing low-cost productions into this market, often made through dumping and which do not meet the same requirements as European products, especially from the point of view of environmental and social sustainability.”
Ceramic companies demand a balanced, level playing field with their competitors: "As European producers we are required to comply with a series of quality and sustainability rules and guarantees, some shareable, others perhaps too binding, but then Brussels allows productions that are not adequate to these regulations or the result of dumping into Europe," reiterates Ciarrocchi. Some instruments like the CBAM (Carbon Border Adjustment Mechanism) have been developed to protect both companies and European consumers, but sometimes contradictory mechanisms in its operation (for example, non-application to finished products) limit its effectiveness and risk making this instrument an additional burden for companies. Furthermore, a "made in" certification that can protect and enhance domestic production is still lacking.
On the anti-dumping measures front, duties on Chinese products have been confirmed, but the procedure to counter the unfair competition of Indian producers was not successful, despite this country having proven in recent years to be one of the most aggressive competitors: just consider that EU imports of ceramic tiles from India increased from 8 million square meters in 2017 to 48.5 million in 2023 and, after the slowdown last year (-2.2%), resumed growth in the first half of 2025 (+4.2%). With 20% of the global tile market by volume in 2023, India was second only to China (22%), followed by Italy with 13%. In terms of value, our country was in the lead with 32%, followed by China (21%), Spain (18%), and India (11%).
Source: Read the original article | Published: September 21, 2025