Italy June crude steel output falls 14% on year amid low demand, high energy costs

Italian crude steel production in June fell 14.2% year on year to 1.88 million mt as demand weakened and energy costs rose, data from Italian steel federation Federacciai showed.

In the first six months of the year output fell 4.0% to 12.23 million mt, the data showed.

Production of long products by electric arc furnaces in June fell 23.2% to 1.01 million mt, while flat production dropped 15.1% to 788,000 mt.

In the first six months of the year production of longs fell 5.2% to 6.79 million mt and production of flat products fell 3.1% to 5.44 million mt.

Italian mills are experiencing high energy costs and expect summer stoppages to be longer then the usual in the face of weak and thinning margins, industry sources said.

The HRC ex-works Italy price stood at Eur770/mt at the end of June, down from Eur950/mt at the beginning of the month.

Platts assessed HRC in Italy at Eur780/mt ex-works on July 18, down Eur5/mt on the day, according to S&P Global Commodity Insights data.

Sources estimated tradable value at Eur760-770/mt ex-works Italy, but latest transactions have been confirmed at Eur800/mt ex-works.

Italy is Europe’s second-largest steel producer after Germany.

— Annalisa Villa