Italian steelmaker Acciaierie d’Italia, the joint venture between ArcelorMittal and state-owned Invitalia, has idled two galvanizing lines due to deteriorating demand for coil in Italy and Europe, sources tell Kallanish.
The company declined to comment. However, deadlock and falling prices are persisting in the Italian coil market. This is forecast to continue through the summer, sources speculate.
Acciaierie d’Italia may not be an isolated case. Other Italian and European producers are mulling longer-than-usual, six-week maintenance production stoppages over August and are already beginning to reduce output by idling re-rolling lines. In France, ArcelorMittal is understood to be preparing to idle one blast furnace – HF2 – at its Dunkirk mill, effectively reducing output for the coming months (see Kallanish 20 June).
At present, Acciaierie d’Italia’s Taranto steel plant is working using BFs 1, 2 and 4, Kallanish understands. The steelmaker said in May it will increase its steel output by 40% this year compared to 2021. In 2022 it intends to produce 5.7 million tonnes of steel. Sources however believe this is now in doubt because of the unexpected deadlock in the global flat steel market.
The producer posted approximately 4.4mt of output in 2020 and had a production target of 5mt last year. Output for 2021 is yet to be announced.
Natalia Capra France
