Italian steelmakers to introduce a surcharge on electricity

Some steel companies in Italy are considering the possibility of introducing an electricity surcharge to the finished products prices. Kallanish reports about it with the reference to sources in the market.

Some other European steelmakers also say they may take such step due to rising gas and electricity costs.

Although details have yet to be decided, but the amount of the surcharge can reach €200-300 per ton of rolled steel – depending on the enterprise and products. Application of special surcharges to contract prices may begin from September or October deliveries.

If the Italian government does not intervene to cap energy prices, many mills in Italy will be forced to stop production. This applies to some long steel producers in other European countries, such as France and Spain. Customers say they may not be able to pay the latest price increases unless, in particular, the base price is decreased.

Some long steelmakers in Italy are currently idling their plants while others are working at reduced capacity in order to save on their energy bills.

Thus, the Italian Ferriere Nord Pittini is suspending work at the Osoppo plant due to high electricity costs.

Other European steel companies are also forced to cut production due to rising electricity prices. ArcelorMittal announced the stoppages of blast furnaces in Germany and Spain. Also the company did not resume operation of the EAF at the Spanish plant Acería Compacta de Bizkaia, which was supposed to be launched at the beginning of September after maintenance.

As GMK Center reported, ArcelorMittal plans to operate only one of three blast furnaces at its plant in Dunkirk (France).