More than tubes
Van Leeuwen region South-Eastern Europe
Current developments and challenges in the steel market
In VL Connect, we focus on developments in the steel market. This time, we are pleased to share insights from Ruggero Nestri, Regional Managing Director for Southeastern Europe, who will update us on the recent developments in his region.
Due to economies slowing down and interest rates going up, the demand from various key segments of the steel market is decreasing. Fortunately, there are also bright spots, as the demand remains strong in segments such as the automotive industry, energy, hydrogen, natural gas and renewable energy-related projects.
In addition, the price level in Europe has come under pressure over the past months, also due to Asian companies exporting their overcapacity to Europe out of lagging local demand. On the other hand, many European steel mills have initiated the restarting process of their idled capacity during the first quarter of 2023, as they expected more favorable market conditions. The market circumstances however have turned rapidly, and we are now facing increased capacity. These factors, combined with the upcoming summer period, represent a challenge for our industry.
Looking at the (stainless) market, several steel mills, including those in Italy, decided to lower the prices of welded tubes in April and May, given the decreased raw material prices. The sentiment on the supply side is not positive, although producers are counting on an increasing demand after the summer.
While the European market does not provide a clear picture, Van Leeuwen continues to offer its customers the transparency and supply chain safety they need, thanks to the excellent service, local inventories, and the partnerships with leading pipe and tube producers. Our customers can rely on us, even during unstable market conditions.
From our strong position as a global leading tube distributor, we provide customized service to our partners in Europe and beyond. By coordinating our stocking program at a global level, and by continuously investing in our international network, we can mitigate potential shortages and disruptions along the supply chain. We strive to progress on our global logistics innovation program and are investing in logistics systems, machinery, and automation. Thanks to all this, we can continue to fulfill our promise of delivering "more than tubes."
Van Leeuwen has made significant progress in Italy and in the rest of South East Europe (Romania, Turkey). In addition to the historically leading market segments - such as hydraulics, automotive industry, and machine building - we have expanded our product and service portfolio to the energy sector. This resulted in the award of several CAPEX projects and two MRO contracts.
Starting from this year, in Italy we also started a stocking program for hot-rolled mechanical tubes for mechanical engineering. We are developing this market starting from the Emilia-Romagna / Veneto regions and will supply it throughout the whole country soon. We believe that the demand for this product family, driven by machine builders and agricultural vehicle manufacturers, will be very rewarding in the years to come, even in a rather mature market like Italy, where customers require a reliable distributor and a European product.
Regional Managing Director South-Eastern Europe
Back to index
Back to index
Regional Managing Director South-Eastern Europe
More than tubes
From our strong position as a global leading tube distributor, we provide customized service to our partners in Europe and beyond. By coordinating our stocking program at a global level, and by continuously investing in our international network, we can mitigate potential shortages and disruptions along the supply chain. We strive to progress on our global logistics innovation program and are investing in logistics systems, machinery, and automation. Thanks to all this, we can continue to fulfill our promise of delivering "more than tubes."
Van Leeuwen region South-Eastern Europe
Van Leeuwen has made significant progress in Italy and in the rest of South East Europe (Romania, Turkey). In addition to the historically leading market segments - such as hydraulics, automotive industry, and machine building - we have expanded our product and service portfolio to the energy sector. This resulted in the award of several CAPEX projects and two MRO contracts.
Starting from this year, in Italy we also started a stocking program for hot-rolled mechanical tubes for mechanical engineering. We are developing this market starting from the Emilia-Romagna / Veneto regions and will supply it throughout the whole country soon. We believe that the demand for this product family, driven by machine builders and agricultural vehicle manufacturers, will be very rewarding in the years to come, even in a rather mature market like Italy, where customers require a reliable distributor and a European product.
In VL Connect, we focus on developments in the steel market. This time, we are pleased to share insights from Ruggero Nestri, Regional Managing Director for Southeastern Europe, who will update us on the recent developments in his region.
Current developments and challenges in the steel market
Due to economies slowing down and interest rates going up, the demand from various key segments of the steel market is decreasing. Fortunately, there are also bright spots, as the demand remains strong in segments such as the automotive industry, energy, hydrogen, natural gas and renewable energy-related projects.
In addition, the price level in Europe has come under pressure over the past months, also due to Asian companies exporting their overcapacity to Europe out of lagging local demand. On the other hand, many European steel mills have initiated the restarting process of their idled capacity during the first quarter of 2023, as they expected more favorable market conditions. The market circumstances however have turned rapidly, and we are now facing increased capacity. These factors, combined with the upcoming summer period, represent a challenge for our industry.
Looking at the (stainless) market, several steel mills, including those in Italy, decided to lower the prices of welded tubes in April and May, given the decreased raw material prices. The sentiment on the supply side is not positive, although producers are counting on an increasing demand after the summer.
While the European market does not provide a clear picture, Van Leeuwen continues to offer its customers the transparency and supply chain safety they need, thanks to the excellent service, local inventories, and the partnerships with leading pipe and tube producers. Our customers can rely on us, even during unstable market conditions.
Back to index
Back to index