Alessandro Banzato, head of the Italian metallurgical association Federacciai, said at a conference held as part of the Made in Steel business program in Milan, that steel production in Italy could fall if gas and electricity prices continue to rise.
According to him, metallurgical and rolling enterprises monitor the increase in gas prices and electricity tariffs. A sharp increase in costs can lead to a decrease in capacity utilization and even their closure.
In this context, Federacciai is approaching the Italian government and the European Commission with a proposal to cut other costs for metallurgical companies. Especially for them, payments for carbon dioxide emissions can be reduced and the volume of unpaid permits for emissions can be increased.
As the association stated, 16.3 million tons of steel were melted in Italy in the first eight months of 2021, which is 27.5% more than the same period of the previous year and 6.1% more than in January. August 2019 At the same time, demand for rolled products in the first half of this year is only for construction and white goods production returned to pre-crisis levels.
Alessandro Banzato has once again called for easing restrictions on steel imports in the EU, as this, in his view, will help reduce massively inflated prices and encourage consumption of rolled products. An opportunity may be provided for this if the United States removes steel tariffs for European metallurgists.
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