Danieli foresees challenging two years ahead

Danieli forecasts a global fall in steel demand for the fourth quarter as well as first half of next year, with the possible exception of India, Southeast Asia and the Middle East, Kallanish notes.

In its report for the fiscal year through June 2023 (FY23), the Italian equipment maker says it is preparing “for the market downturn of the next two years or so”, but forecasts a lower impact on the specialty steel sector.

Thanks to significant investments aimed at cutting emissions and improving product competitiveness and quality, Danieli’s plantmaking division has a strong order backlog, the firm observes.

While it vows to continue investing in innovation and digitalisation of the steelmaking process, the company has registered growing international success for its MIDA mini-mills technologies such as the Digimelter, which replaces the traditional EAF technology. Also in demand are direct casting-rolling for flat (QSP-DUE) and long (QLP) products.

These technologies, also adopted by competitors, have opened up several opportunities, particularly in Europe. “On the contrary, in India and China, where not enough gas is available, coal-based blast furnaces continue to be installed, although utilising innovative technologies that allow for reducing CO2 emissions,” the report affirms.

In FY23, Danieli posted €4.1 billion ($4.3 billion) revenue and €424 million Ebitda. For FY24, Danieli forecasts €4-4.3 billion revenue with Ebitda of €400-430m.

Specialty steel producer Acciaierie Bertoli Safau (ABS), Danieli’s steelmaking division, is planning to verticalise and acquire a scrap collection company, while continuing to pursue its investment of €650m to reach annual production of 2.3 million tonnes.

The steelmaker plans more investments in its upstream and downstream facilities besides its future acquisition of a scrap merchant. This follows the entry into production of ABS’ QWR 4.0 wire rod mill and the new high-quality ore-grinding ball production plant last year.

ABS posted FY23 turnover of €1.1 billion with €58.8m Ebitda. The production sold during the year reached approximately 1.2mt, a 10% decline compared to the previous financial year.

In July, ABS completed the purchase of scrap company Rott-Ferr, in line with its verticalisation strategy. The scrap firm has an annual scrap collection capacity of approximately 100,000 tonnes.

Natalia Capra France