Wuppermann nears completion of new Austrian tube site
Wuppermann Metalltechnik GmbH (WMT) has celebrated the roofing ceremony for its new production hall in Altmünster, Austria, Kallanish hears from parent group Wuppermann AG.
With a total investment of around €39 million ($42m), the German processor is building a new plant for its specialist precision steel tube maker unit, WMT. The project was initially announced in mid-2023 and construction work started in April last year.
Two highly automated tube welding lines and fully automated primary material and finished goods warehouses will be installed in the new hall complex. The cranes and machinery for assembly are due to be delivered from mid-March.
With this investment, WMT says it will be able to produce complex profile shapes in future, significantly expanding both the range of dimensions and the strength spectrum of its products. During the ramp-up of the new profile line, the existing tube welding line will remain in operation, ensuring seamless supply to customers.
Christian Koehl Germany
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
Marcegaglia UK expands stainless steel tube production
Marcegaglia UK has announced an expansion of its manufacturing capabilities at its Oldbury site and now produces electro-welded stainless steel tubes.
The addition complements its existing production of carbon steel tubes, allowing it to provide a broad range of high-quality steel products for various applications, Kallanish learns from the company.
The Oldbury facility spans 69,000 square metres, with 46,184 square metres of covered space. It is equipped with four production lines for carbon steel tubes, with a total capacity of 70,000 tonnes, alongside three production lines for stainless steel tubes, enhancing the capacity by an additional 30,000t.
The production of stainless steel welded tubes at Marcegaglia UK focuses primarily on steel grade 304, adhering to the EN10296-2 standards for round tubes and ASTM A544 standards for square and rectangular tubes.
The company says the expansion marks a significant step in its UK’s growth, reflecting its dedication to meeting the diverse needs of its customers across the steel industry whilst its production lines are equipped to provide a variety of specific tube finishes.
Marcegaglia UK has recently become a member of the British Stainless Steel Association (BSSA).
Carrie Bone UK
Benteler supplies sustainable tubes for construction
Seamless tubes from Benteler Steel/Tube’s CliMore series will be used in pioneering geotechnical applications, Kallanish learns from the German company.
CliMore tubes will be used in the construction industry as micropiles or ground nails for foundation and stabilisation. The steel load-bearing elements transfer compressive and tensile loads under both dynamic and static conditions into the surrounding soil or rock structure, Benteler explains.
As part of a contract signed this month, it will supply CliMore tubes to Ischebeck, a market leader in the field of geotechnical applications and the first customer from construction to opt for this steel type. In contrast to conventional solid bar commonly used for anchoring, Ischebeck uses a tubular solution, thereby saving materials, Benteler notes.
Meanwhile, ArcelorMittal reports signing a contract with ABB for the use of its XCarb steel in ABB’s Kabeldon power distribution system. The sustainable sourcing agreement helps reduce the carbon footprint of key electrification equipment by 29%, according to ArcelorMittal.
Designed for outdoor environments, Kabeldon provides weather-resistant power distribution. Long popular with the utilities industry, the system is now also widely used for electric vehicle charging infrastructure and renewable energy applications.
Christian Koehl Germany
Cogne approves capital increase to buy Mannesmann
Cogne Acciai Speciali has approved a €45 million ($50m) capital increase. This decision will provide the necessary financial support for the acquisition of Mannesmann Stainless Tubes from Salzgitter AG, Kallanish learns from the Italian stainless long steel producer.
In a statement, Cogne highlights that this financial operation is a significant move designed to bolster the company’s ongoing expansion and strengthen its position in the special steel industry. It aims to enhance its portfolio and expertise in the global market.
The acquisition is expected to be finalised in the fourth quarter. Cogne, a subsidiary of Walsin Lihwa, is committed to expanding its global reach and catering to increasing demand from the aerospace, nuclear, medical, and energy sectors. As part of its ongoing efforts to improve operations, the company is currently investing in the modernisation of its Aosta plant in Italy. This includes revamping the cooling chamber of the continuous casting machine for special steel blooms. The upgrade was implemented during this year’s four-week summer shutdown.
The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden.
Since it was acquired by Walsin Lihwa, it has grown through a series of mergers. Last year, it completed the acquisition of Sheffield-headquartered Special Melted Products (SMP). Walsin is investing over €110 million ($121m) in Cogne’s Aosta plant between 2022-2024. The growth strategy involves gaining market share in Europe and Asia, and developing the group’s presence in the US (see Kallanish passim).
Natalia Capra France
Tubemaker Wiederholt sources CO2-reduced steel from ArcelorMittal
Wiederholt, a German producer of precision steel tube, and ArcelorMittal have signed a memorandum of understanding to use CO2-reduced steel in production, Kallanish learns from the steelmaker. Both companies have been working together for several decades.
As part of the partnership, Wiederholt intends to source hot-rolled steel from ArcelorMittal with CO2 savings of up to 65% compared to traditional production methods.
The CO2 reduction will be achieved through “XCarb Green Steel certificates” and steel with the “XCarb recycled and renewably produced” label. According to ArcelorMittal, at least 75% recycled scrap is used in the production of this steel. The CO2 savings that Wiederholt can pass on to its customers are verified by environmental product declarations (EPDs), the steelmaker says.
Wiederholt’s precision steel tube is mainly used in the automotive industry, including shock absorbers, camshafts, steering parts, cardan shafts and stabilisers. It has committed to becoming carbon neutral in Scope 1 and 2 emissions by 2030, in accordance with the Greenhouse Gas Protocol.
Separately, ArcelorMittal Germany has announced that its Duisburg long products mill has been certified by organisation ResponsibleSteel, following a two-year audit by inspection company GUTcert.
Christian Koehl Germany
Van Leeuwen launches brand for ‘CO2-reduced’ tubes
Van Leeuwen Pipe and Tube Group has launched its own brand for “CO2-reduced” steel tube products, called Van Leeuwen Impact.
This umbrella brand represents a new line of CO2-reduced steel tubes manufactured by a range of renowned European tubemakers, Kallanish hears from the Dutch distributor.
With the introduction of its Impact brand, the company aims to support the sustainability ambitions of its partners and customers in the tube industry. According to Van Leeuwen, customers are increasingly seeking sustainable solutions.
Van Leeuwen says its Impact products are sourced from manufacturers that share its dedication to sustainability. “Working closely together with our partners in the supply chain, we are currently stocking and distributing an entire range of CO2-reduced steel pipes and tubes,” says chief executive Joop Sassen.
The company’s announcement does not specify the makers of the CO2-reduced tubes of its branded product line, nor does it provide information on the production routes.
Christian Koehl Germany