Arvedi, the EAF-based coil supplier based in Cremona in northern Italy, has confirmed to Kallanish that it intends to cut its production by 70% at the company’s main mill during November and December.
Rumours of such big reduction in output began to circulate in September. Arvedi confirms that during the downturn it will implement a number of upgrades at the plant.
“International tensions linked to tariffs, the sharp economic slowdown and the persistent crisis in the car industry which has dragged Germany into recession, are creating a highly critical situation in the market for steel products and above all the market for hot rolled coils,” the company explains. “If to this [… situation] is added massive imports at very low price, in particular from Turkey, the picture is one of difficulties which risk becoming systemic.”
The producer is also issuing a call to both national and European authorities to adopt a strong stance to safeguard the market going forward.
It is understood that the reduction in the Arvedi output will have an impact on the coil market due to the lower availability of finished product. It will also affect the Italian scrap market, where Arvedi is among the largest buyers. A trader calculates that the Italian scrap market would see demand reduced by as much as 70,000-100,000 tonnes during November and December as a result of the temporary stoppage by Arvedi.
Production capacity at the Cremona mill is 3.4 million tonnes/year, Kallanish understands.