Italian re-roller Marcegaglia is launching a new tube price list effective from next week, Kallanish learns from the company.
Consecutive hot rolled coil feedstock price increases have forced the re-roller to change its price list for the third time in four months. The change will be a technicality involving relative discounts as the general structure of the new price list will remain mostly similar to the old one.
Distributors use a lower Marcegaglia discount to include their margins and costs in their own sales. Kallanish understands that discounts in Italy are currently at 15-16 points; therefore, distributors are not able to sell at the levels of the previous Marcegaglia price list and cannot retain their margins. The new list will increase the level of discount to allow distributors to use the re-rollers’ price list.
Welded tube sales prices are rapidly rising in all European countries following the steep increases in HRC. Other re-rollers are also coming up with new price lists due to the rapidly decreasing discounts. Welded tube discounts are now at the level of 15-16 points in all European countries. Each point of discount is currently equal to €13/tonne ($16/t).
HRC prices have reached an average level in Europe of €1,000/tonne base ex-works. Prices for welded tubes in all European countries are expected to rise again next week, sources say.
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