Future depends on energy availability: Alfa Acciai

The future of the long steel market in Italy will depend on energy and gas availability, disruption to which is responsible for a sharp slowdown in demand, says Italian steelmaker Alfa Acciai chief executive Amato Stabiumi in the company’s 2021 financial report monitored by Kallanish.

Alfa Acciai registered a positive start to 2022. In the first quarter, both production and sales increased but skyrocketing prices of raw materials and energy together with uncertainty related to the continuing war in Ukraine have caused the current market downturn.

The company reported improved results year-on-year in 2021 thanks to strong steel consumption in Italy and Europe. The group says it managed to protect its margins “by leveraging volumes, price and efficiency in a year characterised by a continuous rise in raw material prices, especially scrap, electricity, and gas”. Revenue increased by as much as 80% compared to 2020 to €1.2 billion ($1.2 billion), while the steelmaker’s exports were up 40% on-year.

2021 crude steel production amounted to almost 1.8 million tonnes, up 20% on 2020, while Ebitda doubled compared to pre-pandemic 2019 to €65 million.

Last year, the company invested about €34m focusing on upgrades, energy efficiency and reducing its carbon footprint. It says it is continuing to invest in energy transition, increasing the share of renewable sources in the energy supply mix.

Natalia Capra France