Italy cut steel production by 42% y/y in August 2022

In August 2022, Italian steel enterprises reduced steel production by 42.2% compared to August 2021 – to 732 thousand tons. SteelOrbis reports about it with reference to data from the Federacciai – Italian association of steel producers.

In January-August 2022, Italian steelmakers reduced steel output by 10% compared to the same period in 2021 – to 14.59 million tons.

The production of flat products in Italy in August 2022 fell by 31.3% compared to August 2021 – to 378 thousand tons. In 8 months, the index decreased by 7.2% year-on-year, to 6.62 million tons.

The production of long products in Italy in August 2022 amounted to 305 thousand tons, which is 50.2% less than in August 2021. In January-August 2022, the production of long products decreased by 11.8% y/y – to 7.98 million tons.

Some Italian long steel producers decided not to resume operations after maintenance shutdowns in August. Plants are forced to take such a step due to rising electricity prices, weak demand for domestic steel due to high imports and low product prices.

Thus, the Italian producer of long products Ferriere Nord Pittini did not resume work at the Osoppo plant after scheduled summer maintenance. The company suspend work for 751 workers at the plant from August 29, 2022 to October 2.

Arvedi, one of the largest flat steel producer in Italy, stopped three of the four electric arc furnaces (EAFs) at two Italian plants.

All steelmakers in Europe suffer from the effects of the factors mentioned above. The leading steel producer ArcelorMittal has temporarily stopped or announced the stoppage of about 7 million tons of the corporation’s annual capacity across Europe. Today, two blast furnaces at the plant in Dunkirk are stopped. From October, the furnaces in Bremen (Germany), Hamburg and Asturias will be also stopped. Also the company postponed the launch of one of the blast furnaces at the Acería Compacta de Bizkaia plant in Spain.

Following ArcelorMittal, US Steel Kosice, Dunaferr, Liberty Ostrava, Ferroatlántica, Ferriere Nord and other have decided to reduce or stop capacity.

As GMK Center reported earlier, steel enterprises of Italy in 2021 increased steel production by 19.8% compared to 2020, to 24.4 million tons. The production of flat products in 2021 increased by 16.6% y/y – up to 11 million tons, and long products – by 21.8%, up to 13.6 million tons.