Italian Feralpi outlines market prospects for 2024

Italian long products manufacturer Feralpi assesses the outlook for 2024 as unfavorable and unpredictable. This is reported by Kallanish.

Feralpi notes that negative factors prevail, mainly due to increased geopolitical tensions, in particular related to the situation in the Middle East. It also includes the growing international fragmentation of production and its potential impact on commodity prices.

Among the factors that could have a positive impact, Feralpi cites the strengthening of the US economy, a faster-than-expected slowdown in global inflation, and thus an earlier easing of monetary policy.

Despite the economic slowdown in the first half of 2024, there is optimism that the situation will improve in the second half of the year. This is due to the projected decline in inflation and the expected decline in interest rates, which is expected to create a more favorable environment for both businesses and households.

Ferlpi’s business plan for 2024-2027 is based on a sustainable development scenario, which assumes a gradual recovery in sales volumes after the Covid pandemic. This recovery is expected to be driven by the construction sector.

This scenario also assumes an increase in scrap prices driven by increased demand as a result of the full cycle of EAF technology transition. The company expects energy prices to be higher than historical levels but below the peak in 2022 as the market shifts to renewable sources. In addition, the Italian long products manufacturer predicts a moderate increase in carbon prices due to regulatory measures aimed at reducing them.

According to the company’s report, Feralpi’s steel production in 2023 amounted to 2.4 million tons, which is 1.06% less than in the previous year. The company’s revenue reached €1.7 billion and EBIDTA was €78 million. Technical investments last year reached €169 million, and Feralpi continued to invest in both production and logistics.

As GMK Center reported earlier, German rebar manufacturer Feralpi Stahl, a subsidiary of Italian Feralpi Grour, commissioned the first stage of its scrap processing plant in Riesa last September. Scrap recycling is an important part of the company’s ability to efficiently produce reinforcing steel for the construction industry. It is also in line with the company’s goal of producing green steel through the efficient use of raw materials.