Metinvest’s Italian production halt may be extended

Production volumes during the shutdown of Ferriera Valsider and Metinvest Trametal, both part of the Metinvest group, are forecast to decrease to 40,000 tonnes, Kallanish learns from a company note.

Last month the Metinvest Group halted the two rolling facilities in Italy due to the Covid-19 pandemic and the Italian government’s decision to suspend the operation of steel mills in the country.

The group is not excluding the fact that the Italian government may impose additional restrictions under which the shutdown at the two plants will be extended. “At the same time, the availability of semi-finished products inventory will allow to resume the normal pace of operation immediately after the release of quarantine, if there is a demand for steel products.” Metinvest says.

In the event of an extension of restrictions imposed on Italian plants and continued instability in the European market, Metinvest is also forecasting a decline in production at its Ukrainian plants (see separate article).

Italian coil output is at a minimum. Only ArcelorMittal Italia at its Taranto facility, Arvedi and Marcegaglia are producing at a heavily-reduced capacity and are only supplying those sectors that are considered as crucial during the pandemic.  

Ferriera Valsider is located in the province of Verona, in northern Italy, and its production capacities are 400,000 tonnes/year of plate and 600,000 t/y of hot rolled coil. Metinvest Trametal is a quarto plate re-roller located in San Giorgio di Nogaro, also in northern Italy, with a yearly capacity of 600,000/tonnes of quarto plates.