Italian rolling machine and steel manufacturer Marcegaglia has updated its current price list for carbon pipes, reflecting higher raw material and shipping costs. The update shows an increase in internal and external logistics costs, as well as the higher cost of hot-dip galvanized coils used in the production of galvanized pipes.
Enrico Paladini, Sales Director at Marcegaglia, told Kallanish that the new price list includes higher costs for external logistics due to rising labor, fuel and road tolls and other costs. For internal logistics, the company has introduced an additional fee linked to the minimum order quantity (MOQ).
He explains that after Covid, purchasing behavior in the distribution sector has changed, with customers now placing smaller and more frequent orders by combining multiple specifications in a single truck. This trend, reflecting the ongoing uncertainty in the market, has led to increased loading and unloading times.
Transportation companies currently charge an additional fee for loading times exceeding two hours. When customers buy 23 types of products in one batch, trucks often have to load them from multiple warehouses, especially in large enterprises, which leads to delays and additional costs.
According to the new price list, when ordering less than two packages of 6-meter welded pipes, an additional fee is charged for the minimum quantity at a price of 20 euros per ton ($23 per ton). Paladini notes that this initiative marks the first step towards gradually restoring the economies of scale that a pipe manufacturer needs in order to increase efficiency and manage costs.
Given the high complexity of current orders, this step also encourages buyers to optimize their purchases, speeding up their execution, process them and deliver them home. For customers who require special delivery services, an additional "conditional delivery" fee will also be charged. The amount of the additional fee will be determined depending on the specific order and service requirements, Paladini confirms.
The company will also increase the nominal value indicated in the price list for galvanized pipes. This adjustment followed the expansion of the price range between hot-rolled and galvanized coils as a result of the adoption of the EU protective amendment earlier this year, combined with increased demand for galvanized steel in Europe.
This situation allowed the roll manufacturers to increase the price range between black hot-rolled and high-density rolls to 130-140 euros per ton, compared with the previous 120 euros per ton. Increase
