Italy’s AST to stop production for a week on low demand

Stainless steelmaker Acciai Speciali Terni will stop crude production and all the rolling lines at its site in central Italy for a week from from May 25 because of low demand, union sources told S&P Global Commodity Insights.

It will be the second stoppage in May for the same reason

At the recent BIR conference in Amsterdam, market sources said a downturn in demand and prices was being witnessed in all major stainless steel market areas except the Middle East, where there were growth prospects.

Demand for stainless steel is low as the high inflation weights on the industry, even though falling energy prices during 2023 significantly reduced the cost basis for energy-intensive stainless-steel production.

AST has two Electric Arc Furnaces (EAFs) in Terni with a combined capacity of around 1.4 million mt/year. Last year the company produced 1 million mt of crude steel, union sources said.

AST declined to comment.

Platts assessed the domestic European alloy surcharges for 316 Coil and 316L bright bar at Eur4,220.50/mt ($4.525/mt) and Eur5,785/t, respectively, in May, a substantial reduction from the previous month.

Relevant assessments for global molybdenum and European low-carbon premium ferrochrome inputs were valued at $21.25/lb-$21.65/lb Mo, and $3.30/lb Cr DDP NEU on May 25.

Author: Annalisa Villa