Italy 2019 crude steel output below forecasts as output cuts bite: Federacciai

London — Italian crude steel production in 2019 dropped 5.2% year on year to 23.24 million mt, according to the latest figures released by Italian steel association Federacciai, as the year ended with output cuts.

In October the association had predicted a decline of 4%-4.5%.

Output of flat steel products in 2019 dropped 4.8% year on year to 10.62 million mt, while longs production fell 1.6% to 12.20 million mt.

In December alone crude steel production tumbled 17.3% year on year to 1.413 million mt. Output of flat steel products in the same month fell sharply by 35.8% to 577.000 mt, the heaviest drop in a single month since at least 2014, the furthest back the data goes.

The sharp fall in output of flat steel in December was mainly due to maintenance work at Arvedi, the second-largest Italian flats producer, which carried out an overhaul on some of its lines. Crude steel output also fell due to production issues at ArcelorMittal Italia, the largest Italian flats producer, partly due to uncertainty caused by tensions between ArcelorMittal and the Italian government, but also due to the decision to reduce output in line with a decline in demand.

Output of long products in December fell 5.8% year on year to 757,000 mt. Market sources said demand for longs had also declined in December and steel producers had opted to extend their Christmas stoppages.

Federacciai declined to comment on the outlook for the coming months, but market sources said demand for both longs and flat products in the first quarter is expected to improve due to re-stocking and stronger market fundamentals.