Italian pipe manufacturers at the Tube and Wire exhibition in Dusseldorf are considering the possibility of raising prices by about 50 euros per ton (58.93 US dollars per ton), with changes depending on the type of rolling, as they seek to bring the cost of pipes in line with the increase in roll volume, according to Kallanish sources.
One handset manufacturer confirms that they have suspended sales and it will take them a few days to announce the new prices. No official statements have been made, as companies use the exhibition to assess market sentiment, although some of them are expected to announce this before the event closes.
While roll prices continue to rise steadily and are expected to rise further due to new precautionary measures, pipe prices in Italy have remained stagnant over the past month.
The sector is facing weak demand amid a particularly calm market in March. Discounts on tubes remain in the range of 40-42 points. Resellers are considering the possibility of reducing them by three points.
Downstream customers are preparing for price increases in the coming months, but have reported concerns about weak demand and their ability to remain profitable at current increased costs.
Since the current roll stocks will decrease in the coming weeks, some sources suggest that after the summer, the price of hot-rolled roll may reach 900 euros per ton.
Problems with non-payments and payment delays are starting to arise downstream, which adds to the current complexity. The main problem among buyers at the exhibition seems to be the discrepancy between real consumption in the current market and the continued price increases in the secondary market.
One major buyer of rolled steel and pipe products told Kallanish that the manufacturing sector is currently beginning to feel the brunt of high prices caused by protectionism and declining competitiveness, caught between rising commodity prices and a market unable to withstand further increases.
The Italian Purchasing Group reports high inventories and weak demand for rolled products, with most steel processors showing negative performance and a lack of information on pipe orders.
Author: Natalia Capra France
Kallanish.com
