Italy’s April crude steel output falls 12.1% on year as demand weakens

Italy’s crude steel production fell 12.1% year on year to 1.9 million mt in April, data from the country’s steel producer association Federacciai showed May 17.

The output dropped 7.6% on the year in the first four months of 2023 to 7.5 million mt.

In April, buyers were on the sidelines because of weak demand and higher domestic prices in comparison with the international market, a trend that has persisted through May, market sources said, expecting a rebound from July.

As as result some steelmakers have cut production.

However, the country’s second largest coils producer Acciaierie d’Italia restarted its 2 million/year blast furnace 2 on May 16, S&P Global Commodity Insights reported May 17, citing union sources. The move was already planned by the company and will help increase its capacity to about 12,000 mt/d, from 8,500-9,000 mt/d, over the next few weeks.

Italy is the second largest European steel producer after Germany with 21.6 million mt of crude steel production in 2022. Italy’s crude steel output in 2023 is expected to shrink 8%-10% from 2022, Federacciai Head Antonio Gozzi has said.

Production of long products by electric arc furnaces in April fell 11.7% year on year to 1.04 million mt, according to Federacciai data. Long products output by electric arc furnaces was down 8.3% on the year over January-April at 4.2 million mt.

Production of flat crude steel products in April tumbled 17.4% on the year to 814,000 mt. The output was down 12.9% on the year at 3.3 million mt over January-April.

Platts, part of S&P Global, assessed hot-rolled coil ex-works Italy down at Eur720/mt on May 16, from Eur840/mt at the beginning of April.