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It seems that the end of 2022 and the beginning of 2023 are filled with economic uncertainty about rising costs energy and inflationaccording to participants in the regional meeting of the Association of European Steel Distributors Eurometal Held in Milan, Italy.
Producers’ concerns
Participants said that major producers and distributors are experiencing shrinkage profit margins Due to higher costs of standard raw materials and higher inventories, which may be up to 4 months.
Participants added that production cuts already made by some steel makers Still not enough, more cuts are needed, to drive sales, make the industry profitable and maintain prices steel who was suffering from high energy costs Decreased demand coupled with rising stocks.
Assofermet Acciai Flat’s president, Paulo Sangui, said his company posted 10 percent less profit in the January-August period than a year ago, as a slowdown begins. the demand Significantly increased in June, the second quarter and the third quarter by 15 percent year-on-year.
Order in July
The Chairman of the Board of Directors of the Gabrielli Group, one of the largest independent service centers in ItaliaIn his presentation, Andrea Gabrielli said that July, which was usually a good month every year, had one of the weakest demand in history.
Sanjoy added: "The main concern in the new year is that we will see the impact of rising costs on citizens who will not have enough money to buy goods".
For his part, managing director of ArcelorMittal CLN Distribuzione Italia, Cesar Vigano, said during a panel discussion that the need for further cuts was necessary, but that these cuts in profit margins should have been made earlier, to drive sales that have fallen significantly.
profit reduction
Participants were particularly surprised by the lack of profit margin cuts in North EuropePrices have been lower than in Italy since the beginning of September.
The price of a ton of hot rolled iron in countries Northwest Europe €745, while rated in countries south of Europe At 760 euros per ton as in Italy, down 19.2 percent and 9.1 percent, respectively, since the beginning of 2022.
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It seems that the end of 2022 and the beginning of 2023 are filled with economic uncertainty about rising costs energy and inflationaccording to participants in the regional meeting of the Association of European Steel Distributors Eurometal Held in Milan, Italy.
Producers’ concerns
Participants said that major producers and distributors are experiencing shrinkage profit margins Due to higher costs of standard raw materials and higher inventories, which may be up to 4 months.
Participants added that production cuts already made by some steel makers Still not enough, more cuts are needed, to drive sales, make the industry profitable and maintain prices steel who was suffering from high energy costs Decreased demand coupled with rising stocks.
Assofermet Acciai Flat’s president, Paulo Sangui, said his company posted 10 percent less profit in the January-August period than a year ago, as a slowdown begins. the demand Significantly increased in June, the second quarter and the third quarter by 15 percent year-on-year.
Order in July
The Chairman of the Board of Directors of the Gabrielli Group, one of the largest independent service centers in ItaliaIn his presentation, Andrea Gabrielli said that July, which was usually a good month every year, had one of the weakest demand in history.
“The main concern in the new year is that we will see the impact of higher costs on citizens who will not have enough money to buy goods,” Sangui added.
For his part, managing director of ArcelorMittal CLN Distribuzione Italia, Cesar Vigano, said during a panel discussion that the need for further cuts was necessary, but that these cuts in profit margins should have been made earlier, to drive sales that have fallen significantly.
profit reduction
Participants were particularly surprised by the lack of profit margin cuts in North EuropePrices have been lower than in Italy since the beginning of September.
The price of a ton of hot rolled iron in countries Northwest Europe €745, while rated in countries south of Europe At 760 euros per ton as in Italy, down 19.2 percent and 9.1 percent, respectively, since the beginning of 2022.