Developments in the steel market are challenging. Energy prices have slightly dropped after the peaks of the third quarter but are staying relatively high. Prices for scrap metal and hot-rolled coils are stagnating; the demand for steel pipes, however, has been dropping for several weeks. Following last year’s strong upward trend, we are now faced with high costs and declining demand on the European market. Some factories are reducing their production capacity, or, where possible, are relocating sales to other markets, such as the United States. Some steel mills are temporarily halting production due to the high energy prices and lower capacity utilization.
Currently there is a slight improvement in the transportation sector. Supply chains are recovering and transportation costs appear to be stabilizing. The shortage of schooled labor continues to be felt by manufacturers, stock-keeping companies and carriers. It remains to be seen how the COVID-19 situation will develop and to what extent this will result in increased absence due to illness and staffing problems.
At Van Leeuwen we have access to a robust network of large manufacturers of steel pipes and tubes, with whom we have a long-term, strategic partnership. Our partners immediately inform us of any changes, so that we can discuss these with our customers in order to find the best possible solutions. We make optimal use of our global procurement network so as to prevent bottlenecks and continue to purchase materials for our customers at the best possible prices.
Van Leeuwen has sufficient stocks to be able to continue to supply our customers. This is partly due to the Van Leeuwen Pipe and Tube Group’s international structure, which gives us global access to a highly diverse product range.
Van Leeuwen is able to rapidly and flexibly respond to current developments. The reliable delivery of high-quality materials to our customers remains a top priority for the entire Van Leeuwen Pipe and Tube Group. This is why, together with our supplier network and customers, we are working on individual delivery concepts that as much as possible match the customer’s needs, and that, if necessary, are adjusted to changing circumstances. We continue to gather, evaluate and share relevant information, so that we can address the consequences for market segments or individual customers. Direct and transparent communication with our suppliers and customers about availability and pricing now is more important than ever.
European Procurement Manager CS Industry & Mechanicals
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European Procurement Manager CS Industry & Mechanicals
At Van Leeuwen we have access to a robust network of large manufacturers of steel pipes and tubes, with whom we have a long-term, strategic partnership. Our partners immediately inform us of any changes, so that we can discuss these with our customers in order to find the best possible solutions. We make optimal use of our global procurement network so as to prevent bottlenecks and continue to purchase materials for our customers at the best possible prices.
Van Leeuwen has sufficient stocks to be able to continue to supply our customers. This is partly due to the Van Leeuwen Pipe and Tube Group’s international structure, which gives us global access to a highly diverse product range.
Van Leeuwen is able to rapidly and flexibly respond to current developments. The reliable delivery of high-quality materials to our customers remains a top priority for the entire Van Leeuwen Pipe and Tube Group. This is why, together with our supplier network and customers, we are working on individual delivery concepts that as much as possible match the customer’s needs, and that, if necessary, are adjusted to changing circumstances. We continue to gather, evaluate and share relevant information, so that we can address the consequences for market segments or individual customers. Direct and transparent communication with our suppliers and customers about availability and pricing now is more important than ever.
Developments in the steel market are challenging. Energy prices have slightly dropped after the peaks of the third quarter but are staying relatively high. Prices for scrap metal and hot-rolled coils are stagnating; the demand for steel pipes, however, has been dropping for several weeks. Following last year’s strong upward trend, we are now faced with high costs and declining demand on the European market. Some factories are reducing their production capacity, or, where possible, are relocating sales to other markets, such as the United States. Some steel mills are temporarily halting production due to the high energy prices and lower capacity utilization.
Currently there is a slight improvement in the transportation sector. Supply chains are recovering and transportation costs appear to be stabilizing. The shortage of schooled labor continues to be felt by manufacturers, stock-keeping companies and carriers. It remains to be seen how the COVID-19 situation will develop and to what extent this will result in increased absence due to illness and staffing problems.
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