Business

Arvedi AST Halts Production in Terni Until End of November.

Arvedi Acciai Speciali Terni (AAST) has announced a temporary production suspension at its plant in Terni, Italy, from November 20 to 30, 2024. This decision is part of the company’s strategy to manage supply and demand in the stainless steel market by avoiding overloading equipment and stabilizing the market amidst low demand and falling prices. A similar shutdown took place in late October, and earlier in September, one of the plant’s electric arc furnaces was out of service for a week.

 
These measures come amid challenges posed by high energy costs in Italy, which are three times higher than in other European countries, impacting the plant's competitiveness. While AAST has started purchasing cheaper slabs from Asia, the high cost of electricity remains a significant hurdle for competitiveness against both imported suppliers and other European producers. In 2024, the plant's electricity costs averaged €97 per MWh, far higher than in countries like France (€21), Germany (€32), Finland (€35), and Spain (€62).
 
The global stainless steel production for the first half of 2024 showed a 6.3% increase year-on-year, with European production rising slightly by 0.3%.
Rene Khan

Rene Khan

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