The market is looking for its point of stability. Luigi Cuzzolin’s interview on January 25th

For our CEO, spring should bring a return to infrastructure projects, both the “physiological” ones and those linked to the construction site of the PNRR interventions.

“Despite the fact that in 2022 we faced a setback on the consumption front, at the moment the market seems to have found a balance between demand and production, so there is enough demand to make it to April, when I expect a possible improvement in the situation.”

Below is the complete article.

OCTG pipes, market settling down

Cuzzolin, Pipex: ‘The market seems to have found a balance between demand and production’

‘Less negative than expected, although a phase of price adjustment is underway at distribution‘. This is the clear and immediate answer Pipex CEO Luigi Cuzzolin gave when asked how 2023 started for seamless pipes.

“Despite the fact that in 2022 we faced a setback on the consumption front, at the moment the market seems to have found a balance between demand and production, so there is enough demand to make it to April, when I expect a possible improvement in the situation.”

For Cuzzolin, spring should bring a return of infrastructure projects, both the physiological ones and those related to the construction site of PNRR interventions.

“I would like to point out that this is an adjustment phase but not a phase of collapse. It is clear that the unknowns linked to inflation and rising rates do not leave us calm and remain a cause for concern. Financial headaches cannot be ruled out either, if we consider that even for medium-sized companies rates have risen from -0.25% to +3%, and this can make all the difference if someone was shaky’.

In a market searching for its own point of stability, for Cuzzolin a further element to pay attention to is the arrival of imported material.

‘Despite the duty, China has come under pressure again,’ Cuzzolin explains, ‘and according to market rumours as many as 50,000 tonnes of material are on the way. Moreover, the exclusion of Ukraine from the safeguard and anti-dumping systems allows local producers free access to the EU. They are presenting us with a few headaches, since they are deprived of the sea routes and cannot export to the US market. A market that made the difference for practically everyone last year’.

Davide Lorenzini

We thank Siderweb for the kind concession.

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