There is room for a recovery, even if at limited levels. This is the expectation on the market commercial director of Cogne Acciai Speciali Andy Vuillerminguest of the siderweb webinar dedicated to stainless steels entitled “Inox: where is the market going?”.
«I believe that, also according to what was gathered in the exchanges of opinions at the wire fair last weekthere are the conditions for a possible increase in price, even if not very high – said the manager –. I myself, responding to the survey in the webinar, indicated the possible growth range between 25 and 75 euros per ton, but we could also have better numbers. This is because, however, 2024 is currently satisfactory and in line with our forecasts. After a not particularly brilliant 2023, we had already budgeted for 15% growth across our entire product range, imagining a market recovery compared to the second half of last year. For now, demand is fluctuating and not constant, however we are close to the end of the long destocking phase that characterized 2023. Furthermore, interesting projects are arriving on the market that could revive requests.”
Vuillermin further hypothesized that the macro trends underway in Asia and the USA could contribute to the growth of international prices. A vision given by the presence of the Aosta Valley company in both large foreign markets, with 10% of production, while 80% remains in Italy.
«I must say that the stability of our market was also given by our shift towards specialty products which allows us to have more constant requests. And it also allows us to suffer less if, as at the beginning of the year, commodity prices fall more than scrap 304which instead, in contrast, increased to around 100 euros per ton. It is a new phenomenon on which there has been extensive discussion».
On the other hand, the potential for influence on the market of the strikes affecting various continental operators in Spain and Finland is limited; a phenomenon already known on the market and which, due to the limited volumes, should not create distortions according to Vuillermin.
Looking at Cogne’s strategy, Vuillermin indicated that the company is focusing decisively on aerospace (+10% in two years)a sector that has broad growth prospects and where the main competition is played between European and American companies.
In closing, the manager focused on the group’s latest acquisitions: «We have made 4 acquisitions in the last 16 months. Very different operations, which aim to create different levels of synergies within the group. The main strategy that moves us is verticalizationas in the last two operations, the acquisition of Com.Steel on the scrap front and of Mannesmann Stainless Tubes to diversify the product range and therefore the risk. Mannesmann which we know well, because it was already our customer for supplies of drilling bars and billets. We had production space on the steelworks and by verticalizing the product we will saturate our production capacity with the obvious benefits that this entails in terms of economies of scale.”
Tags: Cogne focuses verticalization aerospace Siderweb
