EUROMETAL PRESENTATION 2014
2. EUROPE STEEL TRADE CONFERENCE
STRESA, APRIL 27-29, 2014
POSITION OF STEEL DISTRIBUTION IN EU STEEL MARKETS
GEORGES KIRPS, DIRECTOR GENERAL EUROMETAL
EUROMETAL
THE VOICE OF EUROPEAN STEEL, TUBE AND METAL INTERMEDIATION
ABOUT EUROMETAL
MONITORING TODAY - ASSESSING TOMORROW – WE KNOW STEEL
PLEASE NOTE: WHEN PRINTING USE OPTION [ADAPT TO SIZE]
EUROMETAL IS A NON PROFIT ASSOCIATION ESTABLISHED IN BASEL(CH) ACCORDING TO SWISS LAWS
EUROMETAL OPERATIONAL OFFICES ARE BASED IN THE GRAND DUCHY OF LUXEMBOURG
ADRESS: EUROMETAL OFFICE, LUXEMBOURG, 202b, RUE DE HAMM, L-1713 LUXEMBOURG
E-MAIL: OFFICE@EUROMETAL.NET
PHONE: +352 2625 9026
FAX: +352 2645 9205
CONTACTS:
GEORGES KIRPS, DIRECTOR GENERAL
RICARDO SILVA, OFFICE MANAGER
KIRPS@EUROMETAL.NET
SILVA@EUROMETAL.NET
EUROMETAL
THE VOICE OF EUROPEAN STEEL, TUBES & METALS INTERMEDIATION
EUROMETAL: THE VOICE OF EUROPEAN STEEL INTERMEDIATION
WITH FOUR MEMBER ORGANISATIONS COVERING ALL TYPES OF DISTRIBUTION & TRADE
ASSOCIATION OF NATIONAL
STEEL DISTRIBUTION
FEDERATIONS
EUROPEAN ASSOCIATION
OF FLAT STEEL SERVICE CENTERS
STUDY GROUP
OF STEEL TRADING
COMPANIES
STUDY GROUP OF
DISTRIBUTORS
OF STEEL, TUBES AND METALS
IN 2013, EUROMETAL REPRESENTS:
70 MIO TONS OF SALES
1 600 ASSOCIATED COMPANIES
100 000 EMPLOYEES
MORE THAN 1 MILLION CUSTOMERS
4
EUROMETAL
THE VOICE OF EUROPEAN STEEL, TUBES & METALS INTERMEDIATION
EUROMETAL NETWORKS INCORPORATES ALL ASPECTS
OF STEEL, TUBES & METALS INTERMEDIATION
PRODUCERS
STEEL INTERMEDIATION
STEEL & METALS
TRADING
STEEL, TUBE, METALS
STOCKHOLDING
END USERS
FLAT STEEL
PROCESSING
HOME MARKET
PRODUCERS
&
STEEL, TUBES
AND METALS
END USE
SECTORS
FOREIGN
PRODUCERS
WITH NAT.FED, DISMET, EASSC AND STSG EUROMETAL IS COVERING
ALL MAIN OPERATIONS OF STEEL, TUBES AND METALS INTERMEDIATION
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EUROMETAL
THE VOICE OF EUROPEAN STEEL TUBES & METALS DISTRIBUTION
18 NATIONAL ASSOCIATIONS FEDERATED WITH EUROMETAL REPRESENT
TODAY ABOUT 1 600 EUROPEAN STEEL DISTRIBUTION ENTERPRISES
NAT.FED MEMBER FEDERATIONS:
14
6
16
14
70
50
30
100
47
600
46
1
141
38
21
25
1
34
141
STATUS: 03.12.13
SOURCE : EUROMETAL
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ACOMEFER, PORTUGAL
ARDIMET, ROMANIA
ASSOFERMET, ITALY
BDS, GERMANY
FFDM, FRANCE
GRYMAFER, BELGIUM
MAFE, HUNGARY
NASS, UK
PUDS, POLAND
STAALFEDERATIE, NETHERLANDS
SOHM, CZECH REP. & SLOVAKIA
SSHV/SVEMH, SWITZERLAND
STALFORENINGEN, DENMARK
STAL OCH METALL, SWEDEN
STALFORENINGEN, NORWAY
TEKNISEN KAUPPA, FINLAND
UAHE, SPAIN
WKOOE, AUSTRIA
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INDIVIDUAL NAT.FED MEMBERS:
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AMDS, LUXEMBOURG
ELASTRON, GREECE
GORJO, BULGARIA
SIDMA, GREECE
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EUROMETAL
THE VOICE OF EUROPEAN STEEL, TUBES & METALS INTERMEDIATION
DISMET STUDY GROUP REPRESENTS MAIN EU GENERAL & PROXIMITY DISTRIBUTORS
HAVING AN INTERNATIONAL MARKET COVERAGE
DISMET COVERAGE
OF EUROPEAN STEEL STOCKHOLDING MARKETS
SOURCE : EUROMETAL
7
EUROMETAL
THE VOICE OF EUROPEAN STEEL, TUBES & METALS INTERMEDIATION
EASSC ASSOCIATION REPRESENTS EU FLAT SSC COMPANIES
HAVING AN INTERNATIONALMARKET COVERAGE
EASSC COVERAGE OF
EUROPEAN FLAT SSC MARKETS
SOURCE : EUROMETAL
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EUROMETAL
THE VOICE OF EUROPEAN STEEL TUBES & METALS DISTRIBUTION
STSG STUDY GROUP REPRESESENTS EU STEEL TRADING COMPANIES HAVING
INTERESTS IN FREE EXPORT / IMPORT STEEL TRADE
STSG
STATUS: 03.12.13
SOURCE : EUROMETAL
9
EU STEEL DISTRIBUTION IS AN INTELLIGENT MATCHMAKER
BETWEEN 200 STEEL AND TUBES PRODUCERS
AND MORE THAN ONE MILLION STEEL END USERS
PLEASE NOTE: WHEN PRINTING USE OPTION [ADAPT TO SIZE]
EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
THE KEY PLAYERS IN EU STEEL SUPPLY CHAIN:
200 STEEL AND TUBES PRODUCERS,
3 000 STEEL DISTRIBUTORS & SSC
1 000 000 STEEL AND TUBES ENDUSERS
EU STEEL & TUBE PRODUCERS
200
EU STEEL & TUBE DISTRIBUTORS
3 000
EU STEEL END USERS
MAX 25-30 000
END USERS
SERVED DIRECTLY BY
PRODUCERS
CLOSE TO 1 000 000
END USERS SERVED BY
DISTRIBUTORS
ABOUT 1 000 000
STEEL END USERS
EUROMETAL PRESENTATION
METAL EXPORT CONFERENCE STRESA 28-29 APRIL 2014
STEEL DISTRIBUTORS ARE THE INTELLIGENT MATCHMAKERS BETWEEN
STEEL PRODUCERS AND STEEL CONSUMING INDUSTRIES
PARAMETERS OF STEEL PRODUCTION BUSINESS MODEL
BIG
VOLUMES
LONG
RUNS
ECONOMIES
OF SCALE
PARAMETERS OF STEEL DISTRIBUTION – CUSTOMER SIDE
CLUSTERING
ORDERS
MILL ORDER
LEAD TIMES
NON COMPLEX
DELIVERY BY
ORDERS
RAIL OR BOAT
PROCESSING ONE STOP
SHOPPINGPRODUCT
SERVICES
SOURCING
LOCAL
&
REGIONAL
MULTIDELIVERY IN
FOOT
PRINTS
PRODUCT
24-48 HOURS
PRODUCT
AVAILABILITY
SMALL
ORDERS
ADDITIONAL
PROCESSING
PARAMETERS OF DISTRIBUTION – MILL SIDE
INCREASING
COMPLEXITY
RAPID
RESPONSE
SHORT
LEAD TIMES
DELIVERY
REQUIREMENTS
SERVICE
AND VALUE
FLEXIBILITY
PARAMETERS OF STEEL END USER BUSINESS MODEL
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 2014
UNIQUE SERVICE PROPOSALS BY STEEL DISTRIBUTION HELP CUSTOMERS TO
CREATE VALUE
HIGH VALUE
ADDED
PRODUCTS
COST SAVINGS
IMPROVED
PRODUCTIVITY
EFFICIENT
MARKETING
AND SALES
INNOVATIVE
BUSINESS
MODELS
CUSTOMERS VALUE CREATION
VALUE
UNIQUE SERVICE
PROPOSAL
SUPPLY CHAIN MANAGEMENT
TECHNICAL SUPPORT
FINANCING - IT NETWORK
LOGISTICS - FREIGHTING
STOCKING-PROCESSING-TRANSFORMATION
SOURCING - TRADING
STEEL AND METALS INTERMEDIATING VALUE CHAIN
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
DURING LAST 50 YEARS, EU STEEL DISTRIBUTION HAS BEEN IN A CONTINOUS
PROCESS OF ADAPTING BUSINESS MODELS TO CHANGING MARKET ENVIRONMENTS
LOCAL
PLAYER
MARKET
FOLLOWER
BUY & SELL
BUSINESS MODEL 1960-80
MONO PRODUCT
MONO SEGMENT
TREND
1990-2010
TREND
1980-1990
MULTI PRODUCT
MULTI SEGMENT
4 EMERGING PROXIMITY
BUSINESS SUPPLY CHAIN
MODELS: MARKET SUPPLY
CORE BUSINESS
CUSTOMER DRIVEN
MARKET MAKER
PROCESSING
READY TO USE
REGIONAL /
GLOBAL PLAYER
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
MARKET FUNCTIONALITIES AFFECT STEEL DISTRIBUTION BUSINESS MODELS IN LOCAL,
REGIONAL AND INTERNATIONAL STEEL MARKETS
BUSINESS MODELS OF STEEL DISTRIBUTION ARE FOLLOWING THE
CHANGING AND DIFFERENTIATED MARKET FUNCTIONALITIES…
PROXIMITY BUSINESS
FOCUSED ON SERVING LOCAL / REGIONAL MARKETS
MARKET SUPPLY BUSINESS
FOCUSED ON LARGE MATERIAL SOURCING FOR SME STOCKISTS
SUPPLY CHAIN BUSINESS
FOCUSED ON INTEGRATING INTO VALUE ADDED NETWORKS
CORE COMPETENCE BUSINESS
PRODUCT SPECIALIST / SERVICE SPECIALIST ACTING IN NICHE MARKETS
…LEADING TO A RATHER LARGE SCOPE OF OPERATIONAL MODES IN STEEL DISTRIBUTION
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
BASED ON PRODUCT AND SERVICE OFFER, EU STEEL DISTRIBUTION IS
RUNNING DIFFERENT TYPICAL OPERATIONAL MODELS ADAPTED TO
SPECIFIC SUPPLY CHAIN REQUIREMENTS OF EACH END USE SECTOR
TYPICAL STEEL STOCKHOLDING
BEAM & PROFILE CENTERS & GENERAL STOCKIST
REINFORCING STEEL CENTERS
DISTRIBUTION OF TUBULAR PRODUCTS
STAINLESS STEEL SERVICE CENTER
HIGH CARBON & ALLOY STEELS STOCKIST
FLAT STEEL SERVICE CENTERS
STRIP MILL PRODUCTS SERVICE CENTER
PLATE PROCESSOR & STOCKIST
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EU STEEL DISTRIBUTION & STEEL SSC ARE SYSTEMIC FOR
SUPPLY CHAINS TO STEEL END USERS
PLEASE NOTE: WHEN PRINTING USE OPTION [ADAPT TO SIZE]
EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
THE TYPICAL STEEL PRODUCT PORTFOLIO TRADED BY STEEL
DISTRIBUTION REPRESENTS 87 % OF THE VOLUMES 0F ALL PRODUCTS
OFFERED IN EU STEEL MARKET
EU MARKET: ALL FINISHED STEEL PRODUCTS OFFERED BY STEEL MILLS
STEEL PRODUCTS TRADED BY
EU STEEL DISTRIBUTION AS WELL AS BY MILLS
BEAMS
MERCHANT BARS
REBARS
PLATES
STRIP MILL PRODUCTS
STAINLESS
OTHER ALLOY STEELS
86 % = 113 MT
ONLY BY
MILLS
WIRE ROD
RAILS
SHEET
PILES
14 %
= 18 MT
EU MARKET SUPPLY IN CONSIDERED PRODUCTS : 131 MT IN 2013
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
ALL STEEL PRODUCTS CONSIDERED, STEEL DISTRIBUTION INTERMEDIATES
TODAY 62 % OF EU-27 STEEL MARKET SUPPLY,
NON EU MILLS
13 %
62 %
EU
STEEL
DISTRIBUTION
62 %
38 %
DIRECT
DELIVERIES
MILL TO END USER
38 %
EU MILLS
87 %
SUPPLY SIDE
INTERMEDIATION
SOURCE: EUROMETAL, DATA ESTIMATED FOR 2013
STEEL
DEMAND
BY END USER
SEGMENTS
IN EU
STEEL MARKETS
DEMAND SIDE
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
IN 2013, STEEL DISTRIBUTION ACCOUNTED FOR 62% OF
ROUTES TO THE MARKET:
CONSIDERING ALL STEEL PRODUCTS, THERE WERE NO REALLY SIGNIFICANT
CHANGES IN MARKET SHARE OF THE THREE MAIN SUPPLY ROUTES
SHARE IN EU ROUTES TO MARKET
ALL STEEL PRODUCTS
39 %
40 %
39 %
38 %
23 %
23 %
37 %
37 %
38 %
38 %
2010
2011
2012
E2013
DIR STEEL STOCKHOLDERS
24 %
DIRFLAT SSC
24 %
DIRDIRECT MILL
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
50 %
0%
RAI
LS
STRIP MILL PRODUCTS
STAINLESS
TUB
ES
FLAT
SSC
PLATES
TUBES
MERCHANT BARS
BEAMS
REBARS
OTHER ALLOY STEELS
MARKET SHARE
100 %
EU STEEL DISTRIBUTION IS A SYSTEMIC PLAYER IN MARKET SUPPLY FOR ALL STEEL PRODUCT S,
EXCEPT FOR WIRE ROD, RAILS, SHEET PILINGS
FLAT SSC
MILLS
E2013 ROUTES TO MARKET:
STOCKHOLDING DISTRIBUTION
* EXCL. PRE-MATERIAL FOR COLD REROLLING & TUBES, RAILS, SHEET PILING, WIRE RODS
SOURCE: EUROMETAL UPDATED 16.04.2014
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EUROMETAL PRESENTATION
METALEXPERT CONFERENCE STRESA 28-29 APRIL 2014
100 %
BY END USE SECTORS, STEEL DISTRIBUTION IS A SYSTEMIC PLAYER FOR CONSTRUCTION &
MECH. ENGINEERING SECTORS. FOR AUTOMOTIVE, SSC ARE SYSTEMIC ADDED VALUE PROVIDERS
2012 ROUTES TO MARKET:
EU STEEL DISTRIBUTION & TRADERS
DIRECT MILL BUSINESS
11 %
ALL
SECTORS
89 %
31 %
50 %
69 %
67 %
38%
62 %
63 %
68 %
33%
MECH.
ENGINEE
RING
OTHER
END USE SECTORS
STRIP MILL PRODUCTS
STAINLESS
AUTOMOTIVE
SECTOR
RAI
LS
CONSTRUCTION
SECTOR
0%
MARKET SHARE
33 %
* INCL PRE-MATERIAL FOR COLD REROLLING & TUBES,
SOURCE: EUROMETAL UPDATED 16.04.2014
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AFTER A SLIGHT SLUMP IN 2013, STEEL DISTRIBUTION SALES RECOVERED
A ROBUST GROWTH PACE IN THE 1.QUARTER OF 2014
PLEASE NOTE: WHEN PRINTING USE OPTION [ADAPT TO SIZE]
DISMET MARKET MONITORING
MARCH 2014
IN FIRST 3 MONTHS 2014, DISMET SALES NOTED A GROWTH OF + 7 %, Y-O-Y.
+11%
+9%
+ 8%
+8%
2013
J-M 14
-3%
+7%
2013
J-M 14
2013
J-M 14
-3%
+7%
+6%
2013
J-M 14
2013
J-M 14
2013
-3 %
J-M 14
-4%
-7%
LONG STEEL
PRODUCTS
PLATES
STRIP MILL
PRODUCTS
TUBULAR
PRODUCTS
STAINLESS
ALL STEEL
PRODUCTS
DEVELOPMENT OF DISMET VOLUME SALES: Y-0-Y COMPARISON
SOURCE:
EUROMETAL
SOURCE
: EUROMETAL
UPDATE: 25.04.2014
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