Italian steel market weighs the impact of coronavirus

The steel market in Italy, one of the countries hardest hit by the coronavirus, is quiet, prices are mostly stable, while market participants are assessing changes not only in the domestic market, but also in the rest of Europe, according to sources.

Market sources indicated that the virus is spreading not only in Italy but also in the rest of Europe, creating uncertainty across the continent and an overall decline in end-user demand, which is likely to result in a domino effect on the rest of the supply. chain later.

Sources say Italian steelmakers and service centers are still open, but as government measures are currently being taken to contain the spread of the virus, the market is mostly on hold, with some domestic operators planning to suspend production, while others located in the hardest hit area, a temporary closure has already been announced.

On Tuesday in the province of Brescia, in Lombardy, one of the main long-term production plants of Alfa Acciai, which produces 1.5 million tonnes of crude steel per year, announced that it would stop production from Wednesday but will continue to ship orders received so as not to cause disruptions. to their clients. Alfa Acciai's chief executive told S&P Global Platts that the company's 400,000 tonnes /year steel plant in Catania, Sicily will continue to operate.

Local sources said that another Lombardy-based scrap producer, Valsabbia, with an annual capacity of around 600,000 tonnes of steel, also suspended production on Wednesday. The company did not respond to a request for comment.

On Monday, the Italian government announced that it would extend the ban on northern Italian provinces to the entire country until at least April 3. According to the latest figures published by the Italian Civil Protection, 8,514 people have been infected, most in the provinces of the northern region of Lombardy (4,427). Lombardy has the largest concentration of steel and roll producers and produces almost half of the 23 million tonnes of Italian steel per year.


Market sources expect further shutdown reports, mainly from mills in the hardest hit areas, but some also indicate that the virus is spreading to other European countries where mills are likely to follow Italy's lead. “I think end users will influence steelmakers in the industry as well as in other sectors. But I doubt this will only happen in Italy. We must also look at what is happening in Germany and, given the Trade relations between Northern Italy and Germany, it is better to end at one and the same