The stagnation in the Italian long steel market is intensifying, with the absence of improvement and low margins compelling several mills to cease operations this month. There are also plans for extended shutdowns during December, sources tell Kallanish.
Several longs producers are currently operating at 50% of their capacity. One has closed at least one of its facilities in November due to insufficient orders. No products are immune from the downturn, including speciality steels, which demonstrated better performance until the summer.
Longs prices seem to remain stable month-to-month; however, consumption levels are underwhelming. Multiple mills are planning to execute stoppages also during the first week of December.
The Italian merchant bar sector is facing significant challenges as a result of weak order volumes. The market is seeing pricing stability, however, as the main producers are effectively holding their position in the face of declining bids.
The current price range for domestic merchant bar stands at approximately €280/tonne ($301/t) delivered, equating to €700/t, including size extras.
The improved demand for sections seen in recent months amid reduced availability is experiencing a decline in momentum as the market moves into November.
The supply of beams is projected to remain significantly constrained. Sources indicate prices for the first category are at approximately €800/t delivered.
“Production halts in December will be longer than the usual two weeks. Several mills are considering four-week stoppages to balance demand and supply. There is a general stability in longs prices, but increases are hard to pass on,” a source comments and confirms the continued weak sales volumes.
Sources indicate ArcelorMittal’s long and flat products distribution branch in Bologna, Italy, is set to permanently close on 31 December. Customers have been notified of the decision and reassured about the status of pending deliveries. The steelmaker’s other distribution hub in Flero, Brescia, continues to operate (see Kallanish passim).
European long steel producers are under severe financial pressure that could compel them to potentially close or divest certain facilities if the ongoing market downturn and lack of state support continue, several regional mill sources say.
Natalia Capra France
