Italian re-roller and steelmaker Marcegaglia has updated its current carbon tube price list, reflecting higher raw material and delivery costs. The update shows rising internal and external logistics expenses, as well as higher costs for hot-dipped galvanised coil used in the production of galvanised tube.
Marcegaglia sales director Enrico Paladini tells Kallanish the new price list incorporates higher external logistics costs, driven by rising labour, fuel, toll fares and other expenses. For internal logistics, the company has introduced a surcharge linked to minimum order quantities (MOQ).
He explains that the distribution sector’s buying behaviour has shifted since Covid, with customers now placing smaller and more frequent orders, combining multiple specifications in single truckloads. This trend, reflecting ongoing market uncertainty, has lengthened both loading and unloading times.
Transport firms are now imposing surcharges for loading times exceeding two hours. When customers buy 23 product types in a single shipment, trucks often need to load from multiple warehouse areas, particularly in larger facilities, causing delays and additional costs.
Under the new price list, orders of fewer than two packs of 6-metre welded tubes will incur a MOQ surcharge of €20/tonne ($23/t). This initiative marks a first step towards gradually restoring the economies of scale that are essential for a tube manufacturer, with the target to improve efficiency and cost management, Paladini notes.
Given the high complexity of current orders, the move also encourages buyers to optimise their purchases, making them faster to process and to get them in house. A “conditional delivery” surcharge will also be applied to customers requiring special delivery services. The surcharge amount will be determined based on the specific order and service requirements, Paladini confirms.
The company will also apply an increase to the nominal value of the galvanised tubes price list. This adjustment follows the widening of the spread between hot rolled coil and galvanised coils as a result of the EU safeguard amendment earlier this year, coupled with improving European galvanized steel demand.
This situation has enabled coil producers to widen the price spread between black hot-rolled coil and HDG to €130-140/tonne, compared with the previous €120/t. The cost increase has so far been absorbed by re-rollers.
According to Paladini, the European Commission’s policy is pushing imports back to 2015 levels. September announcements on CBAM and safeguards could have a significant impact on HRC procurement for the coming months and year ahead.
Kallanish understands several re-rollers, tube makers and steel service centres are also considering similar measures, including raising prices for new orders in line with increasing European HRC prices.
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