Antonio Marcegaglia
CEO |
DÜSSELDORF & LONDON -- Antonio
Marcegaglia said last week that the softening
strip product markets are not in for a sharp
downturn, and that prices may even firm again
in the fourth quarter.
Speaking
on the sidelines of MB's 2nd Steel Tube and Pipe
Conference, the ceo of the eponymous Italian
tubemaker -- and one of Europe's biggest coil purchasers -- said
the current market weakening should be seen more
in the light of inventore adjustments. |
"Real demand is still
pretty strong," he told MB. "Imports have been coming
in and some are still to arrive, but that's because
of decisions based on conditions at the start of this
year, when the market was clearly set to grow." Domestic
prices were largely stable following recent modest
declines, at €500-520 per tonne for hot rolled
coil, €560-600 for cold rolled coil, and €610-640
for galvanized material. Some major producers have
already shown their confidence with announced price
rises for the third quarter, and Corus followed with
a massive planned increase of £45 per tonne. "Mills
are trying to achieve price increases, but it's not
known if they will achieve them. People are waiting
to see what will happen," said one European trader.
There is little buying activity because stocks are
sufficient to see through the quieter summer months. "I
think stock levels will start to decrease in Q3 and
people will start buying again at the end of Q3 or
the beginning of Q4, which will result in stability
of prices," said a trader in Spain, but he added: "I
don't think prices will increase in Q4." As demand
slackens slightly before the holidays, import transactions
into Europe have declined in value to some €480-510
per tonne cfr, but there are few offers and few transactions.
Traders in CIS material said they expected a $5-10
reduction when new export offers for Europe are put
out by the mills this week. "I think prices will come
down a bit more," said one trader in Russian material. "There
is not much demani around at the moment. People stepped
up buying and it peaked a bit in May, but people have
stopped buying now. Freight rates are very high at
the moment."
--------------------------
Marcegaglia looks for expansion possibilities
in India and China
DÜSSELDORF - Marcegaglia,
the Italian coil re-roller and
tube maker, is exploring ways to expand its overseas
production and processing facilities in India and China.
"We want to make a major investment and to focus on
the high-end sector, as we're doing in Poland," said
ceo Antonio Marcegaglia on the sidelines of MB´s
2nd Steel Tube & Pipe Conference in Düsseldorf.
Marcegaglia could not give further details, but did
explain the three phases of investment that the group
is planning at Kluczbork in southwest Poland, which
will become its second largest plant in Europe. It
has bought 500,000 sq metres of land, of which 200,000-
210,000 will eventually be covered. In the first €125
million phase Marcegaglia will install 300-400,000
tpy of welded tube capacity in diameters probably up
to 8in, but perhaps up to 16in. The new mill will mostly
make non-commodity grades such as hydraulic, mechanical,
automotive and heavy-gauge structural tubes. Production
should start in 2009. In the second phase 50,000 tpy
of cold drawing capacity will be installed, and in
the third a 300,000 tpy service centre that will feature
cold rolled and galvanized slitting capacity. Total
investment will be about €250 million. Marcegaglia
is in the process of completing its €100 million
tube investment in Brazil. Six ERW welding mills have
been installed to make precision and structural tube
of max 6in dia. These make carbon steel tube, but two
mills, featuring tig and laser welding, have also just
been installed to make stainless tube. A third high-frequency
stainless line should be in place by September. Marcegaglia
said the group recorded sales in its tube business
of €1.62 billion last year and sales volumes of
1.4 million tonnes. "By 2010 we plan to be doing more
than 2 million tpy, includine our expansion in Italy," he
said. -------------------------- 
Metal
Bulletin - World Steel & Metal News
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