After a first step to align sales prices of stainless steel tubes with production costs, a second upward movement in quotations is now imminent. Simone Sartini, director of the stainless division of Padana Tubi, explains the reasons behind the company’s new adjustment in quotations.
«From the first of February, we initiated a commercial policy aimed at adapting sales prices to product cost. We have reduced discounts only to the extent that is necessary to make sure that the sales price covers the cost of raw materials and of industrial production».
«However, since costs have since seen a rise, before the end of the month we will again alter our prices for the same reasons...This will not be a manoeuvre to boost margins, but is only intended to guarantee that we don’t sell at a loss».
In December and January, the prices of stainless steel tubes saw a declining trend due to traders getting rid of their stocks. The backward step in apparent consummation in these two months has been the other side of the coin of the huge purchases made in the preceding months. Furthermore, along with the drop in consumption, an increase in imports of products from the Far East has been seen.
Padana Tubi e Profilati Acciaio S.p.A., founded in 1968, is a leader in stainless steel tubes on a European level, producing and selling over 100.000 mt of stainless steel tubes annually.