The Italian company Marcegaglia, which manufactures pipes and steel, has published a new price list that changes the price structure for welded pipes in line with recent changes in the rolled steel market, Kallanish reports.
According to market participants, the company is testing a new roll-based pricing mechanism. In the updated scheme, the cost of welded pipes will consist of a base price and an additional markup, depending on the specification, which repeats the approach applied to rolled steel. The base price will remain fixed, and the variable part will change depending on the characteristics of the products. Discounts will be applied to the base cost, whereas previously they were calculated from the total price.
The new price list is expected to be fully implemented by the end of September or early October, as customers adjust to the revised model, Kallanish notes. The document also provides for price increases, but Marcegaglia has not yet determined the final levels, as it evaluates the recent increase in the cost of rolled steel.
In addition, updated transportation costs are included in the list. In recent months, freight rates have increased significantly, and the search for trucks and drivers has become more difficult. Logistics is becoming a major expense item, affecting the cost of steel per ton, and bottlenecks lead to delays throughout the supply chain.
According to one of the sources, the rising cost of fuel and transportation will push the pipe business to greater regionalization. Against the background of growing protectionism, globalization is losing ground, and a local presence is becoming increasingly important for improving service and reducing costs.
At the same time, other European pipe manufacturers are considering the possibility of price increases due to rising costs for rolled steel and transportation. Against this background, ArcelorMittal has already raised prices across Europe in September. The revised base price for hot—rolled coils in Southern Europe is 790 euros per ton, in Northern Europe - 770 euros per ton. These levels are expected to remain in October and November. Purchase prices for HRC are now well above 700 euros per ton, and pipe manufacturers are likely to continue to raise prices despite uncertain demand in the refining market.
Another source believes that the welded pipe sector is facing a deeper transformation, as European protectionism is changing supply chains. Since affordable imported HRC is no longer available in the same volumes, manufacturers will have to pay more attention to additional services, quality, and processing capabilities than to finding raw materials.
Demand for pipes in Central and Southern Europe remains weak, and there are no signs of a sustained recovery in consumption yet. However
