Italian flat steel producer Acciaierie d’Italia (ADI) restarted blast furnace No. 2 at its Taranto plant on 10 February, the steelmaker’s extraordinary administration said on 21 February.
Earlier this month the company announced plans to double steel production to 4 mt/y by April 2026. The steelmaker has also scheduled maintenance on BF No. 4, which will start on 28 February and will last for 60 days.
Market sources commented that the decision to increase output is well timed for the steelmaker, as European buyers have faced higher import prices due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) from January. In addition, import quotas are expected to fall sharply from July, making imports riskier.
As a result, more European buyers have turned to domestic suppliers, allowing domestic prices to rise despite a lack of end-user demand recovery.
In Italy, deals for domestic hot-rolled coil (HRC) have been reported at EUR660-670/t ex-works, matching prices in Northwest Europe, which before was traded at a premium. Some domestic steelmakers have also been more ambitious in their offers in southern Europe, due to the region’s traditionally greater reliance on imports, aiming to get EUR750/t delivered for May rolling HRC.
ADI is currently in the process of being sold, with Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses, discussed in the market as a likely new owner. The tender has not yet been finalised.
Author: Maria Tanatar
