This article is part of a series of materials dedicated to the 75th anniversary conference of the EUROMETAL Steel Manufacturers Association, which will be held on July 2-3. It discusses the challenges and opportunities of the industry in terms of its policies; trade protection; a mechanism for adjusting carbon boundaries; "green steel"; and the growing role of the European steel distribution market.
An often overlooked aspect of the industrial transition is the growing proximity between steel producers and end users, and in some cases, the apparent isolation of distributors in the supply chain.
Domenico Martino, Chief Operating Officer of Knauf Interfer, said in his presentation that long-term contracts for the supply of "green steel" directly from the plant to the consumer "will redefine the role of distribution," describing distributors as somewhat constrained in their adaptability due to the inability of financial institutions to "set prices for available products." opportunities". when assigning business or credit ratings.
Flexibility is of paramount importance as the steel industry is going through a period of dramatic change and instability. The participants of the EUROMETAL anniversary exhibition spoke about the reduction in the frequency of concluding long-term contracts; the transition from annual, semi-annual or quarterly supply agreements to monthly or purely retail sales on the spot market.
According to Ulrich Becker from Becker Consult + Beteiligungs, the sales dynamics for European distributors are becoming more unstable – this is the biggest factor reducing the profitability of distribution. "The batch sizes are decreasing, but the frequency of deliveries is increasing," he said.
Becker advised distributors to strive for development by occupying unique positions in the supply chain: "Business models must improve in the future." Becker urged distributors to ask themselves the question: "What is the company's value in the broader market?"
. Thus, the size of a distributor can be both an advantage and a disadvantage, depending on the specifics of the products and production lines they offer. "Specialization will become increasingly important," Becker concluded.
Indeed, the main topic of the conference, which was nearing its conclusion, was how distribution could best match the changes in the steel sector. Fernando Espada, ex-president of EUROMETAL, lamented the growing difficulties in attracting customers to pay for additional distribution services, especially given the abundance of market information available to end users and the desire of manufacturers to sell products directly to consumers.
Becker,
