Pipe industry as a major consumer of hot-rolled steel products

Now there is a unique situation in the market, when steel pipes in some cases can cost cheaper than strips for their production. This is largely due to the fact that last year there was an oversupply of tubular products, which left certain stocks in warehouses, now pressuring the market. One way or another, but every spring from year to year before the height of the construction season and the beginning of the replacement of utilities in the housing and utilities sector, between the manufacturers of pipe coil and pipe manufacturers there are intense negotiations on the supply of strips and, above all, on the price situation.

Maxim Dolgov, Product Manager at NLMK Group.

- How has interaction with consumers from the pipe sector developed recently? Is the share of rolled steel consumption by the pipe sector growing?
- In recent years, the Russian market has seen an upward trend in the share of flat rolled products in the total consumption of steel products. This has been facilitated, among other things, by active demand from the pipe industry, a major consumer of hot-rolled steel products.
Demand dynamics in this industry is influenced by many factors, including economic conditions, government investment programs in infrastructure projects, the construction sector, and the development of the fuel and energy complex.
High demand growth is noted in the construction pipe segment.
NLMK Group's approach to working with the pipe industry is based on increasing the volume of supplies to logistically attractive regions. The Company focuses on providing a high level of service, including optimization of delivery times and the possibility of using road transport for shipments. We strive to maintain close interaction with our customers by improving service, level of cooperation and product quality. This includes joint development, customization of IT solutions for specific customer needs and technology partnerships. This approach helps to establish sustainable relationships with customers and maintain their high level of loyalty.