
Italian re-rollers enact price increases on high costs
Italian re-rollers are contemplating a price increase and a reduction in tube discounts, sources tell Kallanish.
One re-roller is enacting a price increase of €50/tonne ($52/t) effective immediately, resulting in a reduction of discount levels to 46 points. The company aims to achieve a discount level of approximately 43-44 points within the first ten days of February.
The increases are deemed critical for margin recovery, amid an unsustainable gap between current prices and costs. Costs for re-rollers continue to increase. Donald Trump’s return is expected to result in the implementation of global safeguards and antidumping measures.
“We expect that the majority of Eurofer requests will receive approval from the European Commission, and an increase in protectionist measures is likely to complicate coils import. Re-rollers with a pricing structure based on global HRC purchases will face significant challenges due to the forthcoming regionalisation of the market and increased coil costs,” a tube maker says.
Another agrees that the safeguard review is highly anticipated, and the unfavourable euro-dollar exchange rate will make it more expensive to import coils. Demand for welded tubes is on an upward trajectory; however, the cost of hot-rolled coil in Europe is projected to approach €610/t base delivered in the near term.
Currently, the tube discount levels in Italy are holding steady month-on-month at 48-49 points. With a 48% discount, a workhorse grade such as the 40x40x3 is priced at approximately €670/t ex-works, resulting in negative margins for some.
To effectively manage costs and secure some profit margins, this grade should be positioned at a price point of €800/t, a target most companies are likely to pursue in February. Should this level remain unattained, various sources indicate that tube capacity reductions could be required before the end of this quarter.
At present, European HRC prices have risen in contracts to an average range of €575-580/t base ex-works. The current market demand appears to be flat; however, there are expectations that buyers may resume purchasing activities in the coming days, primarily due to a lack of viable alternatives from the import market.
A mill source started offering HRC at €620/t delivered in Italy, with expectations to reach this level in the coming days.
Natalia Capra France

GLGH Steel acquires Romanian Artrom Steel Tubes
GLGH Steel, LLC, a subsidiary of Chicago-based Great Lakes Global Holdings (GLGH), has announced the acquisition of Artrom Steel Tubes S.A., a leading Romanian producer of seamless steel tubes headquartered in Slatina and Resita.
The purchase agreement, finalized in November with Artrom’s previous Serbian owners, is subject to regulatory approval from Romanian authorities.
Adam Hitchcock, Founder and Managing Partner of GLGH, emphasized the company’s enthusiasm for the acquisition: “Artrom Steel Tubes S.A. is a strong, modern industrial company with a promising future and global potential. We are committed to supporting its growth, exploring new markets across Europe, North America, and beyond.”
GLGH plans to focus on strategic areas such as defense production and decarbonization, reflecting its commitment to innovation and sustainable development. These initiatives will involve substantial investments to drive long-term competitiveness and market leadership.
This acquisition safeguards over 2.000 jobs in southern Romania’s Olt and Caras-Severin counties and promises significant economic contributions through millions of dollars in investments. The company’s development plans include expanding production lines, entering new markets, and maintaining its leadership in the steel tube industry.
Artrom will continue to play a critical role in supplying key sectors such as energy, mechanical engineering, and oil and gas industries, benefiting from GLGH Steel’s global vision and resources.
Adrian Popescu, Chairman of the Board of Artrom, expressed gratitude to the previous owners for their leadership and optimism about the company’s future: “Under new ownership, Artrom is poised to implement its development plans without delay, ensuring stability and growth for employees, clients, and stakeholders.”