Buyers condemn Acciaierie d’Italia retroactive price increase

Italian steel trade association Assofermet has asked local steelmaker Acciaierie d’Italia to immediately withdraw its request for a retroactive energy surcharge for contracts signed before 10 March.

In a letter sent to Kallanish, the association says that such a withdrawal would help the resumption of dialogue with its members and steelmaker customers, with the objective to ease future negotiations for new contracts.

Association members consider the retroactive increase unfair and an attempt at “unilateral renegotiation of contracts already stipulated, confirmed and ‘closed’ in every respect,” Assofermet’s letter states. “This initiative, which is not reflected in the General Conditions of Sale applicable in the contractual phase, has generated a situation of strong unease among the companies concerned, who risk finding themselves in very serious difficulty in coping with sales orders already acquired,” it continues.

Kallanish hears from service centres that some have decided not to pay and intend to involve lawyers.

Acciaierie d’Italia is implementing an energy surcharge on all contracts agreed before 10 March. The surcharge will be calculated based on the average between the gas price at the time of the order and the gas price at the time of production and shipping (see Kallanish 16 March).

Meanwhile, due to rising energy costs, other producers are mulling similar surcharges on future contracts.

Natalia Capra France