Some re-rollers are using the Tube and Wire trade show in Düsseldorf to implement price increases, as anticipated by sources.
After initial hesitation over new quotes at the start of the week, sources at the event confirm that increases of €50/tonne ($58.93/t) have been announced by some companies.
The tube makers operating on a discount basis, particularly in Italy, have opted to reduce discounts by three percentage points, Kallanish hears.
One re-roller at the show describes a dynamic but uncertain event, with new investments throughout the supply chain being discouraged by geopolitical uncertainty driving up costs.
Multiple steel processors say they are increasingly factoring both CBAM charges and the imminent safeguard into their supply chain and pricing strategies, effectively redesigning their commercial approach to sourcing and selling.
“Demand [for tubes] is in contraction or not particularly different from the previous months but [hot rolled coil] offer is heavily limited and complicated on certain product. The new safeguard will modify the supply chain and the large re-rollers who keep buying globally are taking risks and absorbing cost increases” a source says adding that the financial pressure for steel processors is heavy and forecasting future costs and selling prices to continue to increase.
The current tube price increase is said to be the first of several.
In Italy at present the price of a workhorse squared 40x40x3 welded tube grade is around €790/t or slightly less. Today buyers in Europe are purchasing S235 black HRCs at €735-740/t finished delivered or ex-works depending on order size. They need about €170/t of transformation costs.
Tube prices have not followed the increases of HRC as values have been stagnating since the beginning of March.
In the meantime, several sources report imports of tubes continuing to disrupt the European market. The pressure on the European steel value chain demands faster action than EU decision-making currently affords, with rising volumes of processed products imports a particular concern, says EUROMETAL.
The distributor and processor association has launched a call to action directed at the European Commission and all member countries, supported by 300 signatures representing stakeholders across the entire value chain.
Author: Natalia Capra
