The shutdown is a consequence of the slowdown in the steel market as a whole and the high cost of energy resources
Italian stainless steel producer Acciai Speciali Terni (AST), part of the Arvedi Group, plans to introduce a long production shutdown for the Christmas holidays in December-January. This was reported by Kallanish.
The company’s hot rolling area will not operate from December 19 this year until January 7, 2024.
“The shutdown is a consequence of the slowdown in the steel market in general and the high cost of electricity that AST is forced to pay compared to its competitors. The steel plant has already halted production for three days from November 28 to December 1 due to reduced orders that have affected the European market after demand improved in September and October,» company representative commented.
Economic uncertainty and a slowdown in orders are having a negative impact on the profitability and production volumes of stainless steel in Italy. Demand continues to be weak, but production costs are rising at the same time, according to steel association Assofermet. The sector is experiencing the worst margin contraction in 2023.
At the end of November 2023, Acciai Speciali Terni suspended production for three days – from November 28 to December 1. The decision was made amid a decline in orders in the EU market after demand improved in September-October.
As GMK Center reported earlier, in October 2023, Italy reduced steel production by 1.4% compared to the previous month – to 1.93 million tons. In January-October 2023, Italy reduced steel production by 3.4% compared to the same period in 2022 – to 17.87 million tons.
AST is an integrated steel plant in the stainless steel sector. Arvedi Group completed the acquisition of Acciai Speciali Terni from German ThyssenKrupp at the end of January 2022. ThyssenKrupp has retained a 15% stake in AST as a sign of continuity and trust. AST’s sales in the 2019/2020 fiscal year amounted to approximately €1.7 billion. In the 2021/2022 financial year, a net profit of €187.3 million was recorded.