Kerschgens expands Stolberg site
German distributor Kerschgens is expanding its main site in Stolberg near Aachen, close to the borders of Belgium and the Netherlands.
The enlargement at Stolberg will mean the closure of the sites in nearby Würselen and in Viersen, some 70km further north, all in North Rhine Westphalia state. According to a manager, three houses in and around Viersen are mere distribution warehouses which the company established as hubs decades ago, and that do fit in the company’s current structure.
“It made little sense to invest in new storage technology at sites that do not meet today’s standards any more,” he tells Kallanish. The company is therefore building a new hall of 13,000m² with a modern high-bay warehouse in Stolberg for an overall investment of some €20 million ($22m), he says.
In its announcement of the groundbreaking ceremony last week, Kerschgens highlighted its acquisition of Carlier Blechbearbeitung, a sheet-working company, based in Aachen. Kerschgens says it plans to grow this activity further, and for that purpose needs to expand space. The company is a full-range distributor, with an emphasis on long products.
Following the acquisition of Carlier in 2022, Kerschgens employs 247 people at its sites in Stolberg, Aachen, Würselen, Bitburg and Trier, the latter two some 100km south in Rhineland-Palatinate.
Christian Koehl Germany
European distributors lose volume in 2020s
Geopolitical tensions, trade disputes and steel trade measures have disrupted formerly well consolidated supply channels, at the cost of stockholding distributors and service centres (SSCs), European distributors’ federation EUROMETAL says in a recent research paper.
The EU steel distribution sector has experienced a marked contraction, with business volumes decreasing from 77 million tonnes in 2021 to 62mt in 2023. The downturn was particularly pronounced in the Multi-Product & Proximity Steel Stockholding Distribution segment, which saw a reduction from 47mt in 2021 to 37mt in 2023. Service centres’ supply volume in 2023 was 25mt.
EUROMETAL assesses the overall European steel supply potential – what it calls the typical steel distribution product portfolio market – at 116mt in 2023. This compares with 117mt in the 2020 pandemic year, 138mt in 2021 and 121mt in 2022. However, of this total, nearly half is served by mills, with 54mt supplied from mills directly to end users in 2023.
The decline in recent years is attributed to a combination of factors, like the economic downturn, supply chain disruptions affecting production and consumption patterns, geopolitical tensions and trade disputes, EUROMETAL notes. However, “steel distribution remains a vital component of the supply chain, as it offers essential services such as stockholding, processing, and value-added solutions to customers,” the association affirms to Kallanish.
Looking at the typical product groups, EUROMETAL notes that service centres continue to be a major player, accounting for 44% or 21.9mt of strip product supplies to the general industry, automotive, and construction sectors. The end-user quarto plate market saw 3.8mt supplied by stockholders and SSCs, with 4.1mt sold directly by mills to end-user segments.
For long steel products, distributors maintain a dominant share of 75% (22.8mt) in supplying to end users, while direct mill sales to end users accounted for only 7.5mt. The market for tubular steel products, totalling 10.6mt in 2023, was equally supplied by EU steel distributors and direct mill sales, each accounting for 5.3mt.
Christian Koehl Germany
ThyssenKrupp Schulte to close seven sites
ThyssenKrupp Schulte will close seven sites as part of its restructuring drive, market sources told Argus today.
The company will close stockholding warehouses in Braunschweig, Rheine, Munich, Nuremberg, Freiberg, Mannheim and Frankfurt, according to multiple market sources.
Last month the company said it would be closing sites and cutting around 450 jobs, but did not reveal which sites would be affected.
“Fundamental structural adjustments are necessary to better respond to market changes in the future”, the company said when it announced the restructuring, citing declining materials demand and increasing demand for materials-related services. All the impacted locations are stockholding sites and do not provide additional processing.
ThyssenKrupp Schulte is part of ThyssenKrupp Materials Services and distributes stainless, carbon and non-ferrous metals from around 40 locations.
A ThyssenKrupp Materials Services spokesperson said it could not comment on the affected locations, as “discussions with the respective co-determination bodies have only just begun and the details of the transformation are the subject of these discussions”.
“At ThyssenKrupp Schulte we are aiming to transform the business model in order to increase the company’s profitability and enable Schulte to respond even better to changing customer needs,” the spokesperson added.
German steel product sales and stocks dip amid manufacturing slowdown
Steel product sales in the German distribution and stockholding system totaled 776,079 mt in July, down 0.7% from a year earlier, German steel stockholders’ association BDS reported Aug. 22
The July total was down 6.5% from the 829,612 mt sold in June, as the slowdown in German industrial production and weak demand weighed on the market.
Germany’s industrial output fell for a second consecutive month in June, with a drop of 1.5% on a monthly basis, worsening from the previous month’s dip of 0.1%.
Within the overall sales figures, monthly sales of long products totaled 244,917 mt, down 6.4% year on year and little changed from the prior month. Monthly sales of flat products were reported at 476,850 mt, up 3.9% on the year but down 9.1% on the month.
Weaker demand from stockists was also evident in the monthly steel inventories which fell 11.8% on the year to 2 million mt. Stocks of long products were reported at 684,005 mt, down 14.3% on the year and 2.1% lower on the month, while those of flat products were reported at 1.29 million mt, down 10.7% on the year but up 5.9% on the month.
Platts, part of S&P Global Commodity Insights, assessed domestic hot-rolled coil prices in Northern Europe at Eur635/mt ex-works Ruhr Aug. 21, down 35% since March 30.
Author: Euan Sadden
