Activity Alert: Decline in Steel Production Activity Signals Market Implications

Introduction

The Acciaierie Venete Borgo Valsugana steel plant, located in the Province of Trentino-Alto Adige, Italy, is owned by Acciaierie Venete and has an annual production capacity of 600,000 tonnes of crude steel. The facility primarily produces semi-finished and finished rolled products, catering to sectors such as automotive, building and infrastructure, and energy.

Activity Overview

Recent observations indicate a shift in activity levels at the plant, with a reported overall decline of 7.32% over the past 90 days. This change is concerning given Italy’s reported 11.2% m/m increase in steel production in March 2025. The operational trends within the plant’s Electric Arc Furnace (EAF_1) have shown a series of fluctuations:

Between November 2024 and April 2025, activity experienced variations, peaking at 71.0% in February, before a decline to 65.0% by late April. This downward trend raises concerns in contrast to stabilizing trends in Italian crude steel production, which increased by 6% in March compared to last year.

Implications for Market Stakeholders

The decline in activity at the Acciaierie Venete facility poses significant implications for steel buyers and market analysts. With rising production rates across Italy and increased demand for long products (up 20% m/m in March), such operational dips may lead to potential supply constraints or delays in fulfilling orders. Buyers should be prepared for possible fluctuations in pricing and availability, especially in light of current market dynamics influenced by stabilizing production in other European sectors, as highlighted in the report WV Stahl struggles to foresee German production stabilization. Continuous monitoring of this plant’s performance is crucial to anticipate changes in the supply landscape.