1. EUROMETAL PRESENTATION MARCH 2017
QUARTO PLATES AND EU STEEL DISTRIBUTION
EUROMETAL – European Federation of Steel, Tube and Metal Distribution and Trading
Federation registered in Switzerland
Federation Seat: Güterstrasse 78, CH-2010 Basel
Federation Office: 202b, rue de Hamm, L-1713 Luxembourg
M: F: T:
© Eurometal.net

2. LANDSCAPE OF EUROPEAN PLATE PRODUCTION
LANDSCAPE OF EUROPEAN PLATE PRODUCTION. GERMANY AND ITALY ACCOUNT FOR 50 % OF EU OUTPUT
850
380
430
200
630
5 900
E500
550
1 730
2 900
690
540
E600
XXX
= PLATE PRODUCTION IN 2015
1 500
210
SOURCE : EUROMETAL CHART BASED ON WORLDSTEEL DATA, UPDATED

3. APPARENT PLATE CONSUMPTION

4. IN 2016, EU MARKET SUPPLY IN PLATES HAS REACHED 10,0 MIO.T,
AN INCREASE OF +3,1 % COMPARED TO 2015
12,2
10,0
9,7
9,7
9,4
9,2
9,1
8,2
7,0
EU APPARENT CONSUMPTION OF PLATES, IN MIO. TONS(EXCL. PLATES FOR LWT AND INCL.WIDE FLATS)
EUROMETAL CHART: UPDATED:

5. QUARTO PLATES: NON EU IMPORTS ARE ESSENTIAL FOR EU MARKET SUPPLY
EUROMETAL PRESENTATION MARCH 2017
QUARTO PLATES AND EU STEEL DISTRIBUTION
QUARTO PLATES: NON EU IMPORTS ARE ESSENTIAL FOR EU MARKET SUPPLY
SHARE OF NON EU IMPORTS
IN EU MARKET SUPPLY
HISTORICALLY, NON EU IMPORTS HAD IN EU QUARTO PLATES SUPPLY A MARKET SHARE BETWEEN %.
OVER LAST TWO YEARS, NON EU IMPORTS HAVE BEEN TREMENDOUSLY SURGING UPTICKING SIGNIFICANTLY THEIR SHARE IN EU MARKET SUPPLY.
AS A CONSEQUENCE, EU COMMISSION STARTED AN ANTI-DUMPING INVESTIGATION AGAINST THE MAIN ORIGIN OF PLATE IMPORTS: CHINA.
27,8 %
26,2 %
2016
20,4 %
2015
15,5 %
2014
2013

6. DUTIES ON QUARTO PLATE IMPORTS FROM CHINA.
EUROMETAL PRESENTATION MARCH 2017
QUARTO PLATES AND EU STEEL DISTRIBUTION
ON LAST 28 FEBRUARY, EU COMMISION DECIDED TO LEVY HIGH DEFINITIVE ANTI-DUMPING
DUTIES ON QUARTO PLATE IMPORTS FROM CHINA.
The initiation of an anti-dumping trade case against China resulted in 2016 in a slowing down of imports coming from China.
In the meantime and nevertheless, total Non-EU imports continued their rise in 2016.
TRADE CASE PRODUCT ORIGIN INITIATION REGISTRATION PROVISIONAL DEFINITIVE
OF IMPORTS MEASURES MEASURES
AD HEAVY PLATES P.R. CHINA
ANTIDUMPING
EU IMPORTS IN ‘000 T: ALL IMPORTS EX. CHINA
12 MONTHS
12 MONTHS
2016 / 2015 IN % % %
NANJING ISCO: ,1 %
MINMETALS ,1 %
WUYANG ISCO ,7 %
COOPERAT.CIES ,6 %
OTHERS ,7 %
ON 28 FEBRUARY 2017, EU COMMISSION CONFIRMED THE PROVISIONAL DUTIES OF 7 OCTOBER 2016.
PRESENT ANTI-DUMPING DUTIES WILL APPLY FOR A PERIOD OF 5 YEARS FROM 28 FEBRUARY 2017 ON

7. MAIN QUARTO PLATE USING SECTORS IN EU

8. IN 2016, AMONG PLATE END USE SECTORS, MECHANICAL ENGINEERING WAS IMPROVING ITS SHARE
22 %
16 %
20 %
17 %
21 %
22 %
17 %
17 %
OTHER SECTORS
XX %
SHIPBUILDING
XX %
8 %
10 %
9 %
9 %
9 %
11 %
16 %
12 %
16 %
17 %
18 %
17 %
MECH.ENGINEERING
XX %
14 %
15 %
25 %
22 %
24 %
23 %
50 %
24 %
13 %
11 %
TUBES INDUSTRY
XX %
41 %
40 %
35 %
35 %
33 %
33 %
30 %
BUILDING SECTORS
XX %
ESTIMATE SHARE OF END USE SECTORS IN EU QUARTO PLATE CONSUMPTION –
EUROFER

9. BUILDING SECTORS AND QUARTO PLATE USE.
IN BUILDING SECTORS, QUARTO PLATE USE IN 2016 BY STRUCTURAL STEEL CONSTRUCTION CLIMBED SLIGHTLY TO 15 %.
THE POSITION OF CIVIL ENGINEERING HAS BEEN LOWERING DURING LAST YEARS
50 %
50 %
41 %
40 %
35 %
35 %
OTHER BUILDING SECTORS
XX %
7 %
5 %
33 %
33 %
8 %
30 %
6 %
6 %
7 %
7 %
7 %
TANKS, BOILERS VESSELS, HEATING
XX %
5 %
4 %
12 % 3%
12 % 2%
3 %
11 %
3 %
11 %
10 %
CIVIL ENGINEERING
XX %
8 %
10%
16 %
16 %
13 %
14 %
14 %
15 %
STRUCTURAL STEEL CONSTRUCTION
XX %
12 %
ESTIMATE SHARE OF END USE SECTORS IN EU QUARTO PLATE CONSUMPTION
EUROFER

10. MECHANICAL ENGINEERING AND QUARTO PLATE USE
YELLOW GOODS ACCOUNT IN 2016 FOR 6% OF QUARTO PLATE USE.
THE IMPORTANCE OF MECHANIC INDUSTRY IN PLATE USE HAS RISEN DURING 2016
22 % %
50 %
50 %
17 %
17 %
18 %
16 %
16 %
14 %
15 %
OTHER MECHANICAL ENGINEERING
XX %
7 %
7 %
7 %
6 %
7 %
6 %
6 %
ELECTRICAL MACHINERY
XX % 3% 5% 3% 3% 3% 3%
7 % 3%
YELLOW GOODS
8 %
XX %
6 %
6 %
6 %
6 %
5 %
ESTIMATE SHARE OF END USE SECTORS IN EU QUARTO PLATE CONSUMPTION
EUROFER

11. ROLE OF STEEL DISTRIBUTION IN EU QUARTO PLATE MARKETS

12. THE KEY PLAYERS IN EU STEEL SUPPLY CHAIN:
EUROMETAL PRESENTATION 2016 MARCH
QUARTO PLATE AND EU STEEL DISTRIBUTION
THE KEY PLAYERS IN EU STEEL SUPPLY CHAIN:
250 STEEL AND TUBES PRODUCERS,
5 000 STEEL DISTRIBUTORS & SSC
STEEL AND TUBES ENDUSERS
EU STEEL & TUBE PRODUCERS
250
EU STEEL & TUBE DISTRIBUTORS
5 000
EU STEEL END USERS
MAX
END USERS
SERVED DIRECTLY BY PRODUCERS
CLOSE TO END USERS SERVED BY DISTRIBUTORS
ABOUT
STEEL END USERS
SOURCE: EUROMETAL

13. STEEL DISTRIBUTION IS THE INTELLIGENT MATCHMAKER BETWEEN STEEL PRODUCERS AND PLATE END USERS
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
ONE STOP
SHOPPING
PRODUCT
AVAILABILITY
PROCESSING
SERVICES
PRODUCT
SOURCING
NON COMPLEX
ORDERS
DELIVERY BY
RAIL OR BOAT
LOCAL & REGIONAL
FOOT PRINTS
DELIVERY IN
24-48 HOURS
MULTI-
PRODUCT
PARAMETERS OF DISTRIBUTION – MILL SIDE
SMALL
ORDERS
ADDITIONAL
PROCESSING
INCREASING
COMPLEXITY
SHORT
LEAD TIMES
SERVICE
AND VALUE
RAPID
RESPONSE
DELIVERY
REQUIREMENTS
FLEXIBILITY
PARAMETERS OF PLATE END USER BUSINESS MODEL

14. KEY FACTS ABOUT EU DISTRIBUTION STEEL DISTRIBUTION & SSC COMPANIES IN EU - MOST OF THEM ARE SMALL & MEDIUM SIZED ENTERPRISES - PROCURING JOBS TO EMPLOYEES - SEELLING 80 MILLION TONS OF STEEL - TO STEEL END USERS REPRESENTED BY EUROMETAL, THE UMBRELLA ORGANISATION OF 19 NATIONAL STEEL DISTRIBUTION & SSC FEDERATIONS IN EU

15. MULTI-PRODUCT AND PROXIMITY STEEL DISTRIBUTION
PLATE STOCKISTS & PROCESSING CENTERS INTERMEDIATE TODAY 59 % OF EU MARKET SUPPLY IN PLATES
NON EU MILLS
28 %
PLATE PROCESSING
CENTERS
2,7 MT
END USER
SEGMENTS
IN EU-28
STEEL MARKETS
SHIPBUILDING
WINDTOWERS
YELLOW GOODS
OIL & GAS
MECH.ENGINEERING
CEMENT INDUSTRY
MINING
WASTE RECYCLING
TRUCK BINS
27 %
EU MILLS
72 %
59 %
MULTI-PRODUCT AND PROXIMITY STEEL DISTRIBUTION
3,2 MT
32 %
DIRECT DELIVERIES
BY MILLS:
EU & IMPORTS
PROJECT BUSINESS, ETC
4,1 MT
41 %
41 %
SUPPLY SIDE
INTERMEDIATION
DEMAND SIDE
SOURCE: EUROMETAL ESTIMATE FOR 2016, EXCL PRE-MATERIAL FOR TUBES PRODUCER

16. MAIN CHARATERISTICS OF PLATE PROCESSING CENTERS
OPERATIONAL MODELS PRODUCT & SERVICE OFFER END USE CUSTOMER SEGMENTS
PLATE PROCESSING
& STOCKING
PRODUCTS
QUARTO PLATES, HR FLATS,
WIDE FLATS
PROCESSING SERVICES
SHOT BLASTING, PRIMERING
PLASMA- & FLAME CUTTING, DRILLING,
PUNCHING, MARKING, STAMPING, BENDING,
CONSTRUCTIONAL WORKS
SHIPBUILDING,
WIND TOWERS,
YELLOW GOODS,
OIL & GAS
MECHANICAL ENGINEERING
CEMENT INDUSTRY
WASTE RECYCLING
TRUCK BINS

17. IN 2016, THE TYPICAL STEEL STOCKHOLDER ROUTE COULD GAIN 2 POINTS IN MARKET POSITION
SHARE IN EU PLATE MARKET ROUTES
30 %
32 %
DIR STEEL STOCKHOLDERS
28 %
27 %
DIRPLATE PROCESSING CENTERS
42 %
41 %
DIRDIRECT MILL
2015
E2016

18. PLATE SHIPMENTS OF EU STEEL DISTRIBUTION DIVED HEAVILY BETWEEN 2011 AND 2013, RECOVERING SLIGHTLY FROM 2013 TO 2016.
2010 = INDEX 100
INDEX 120
111
INDEX 110
SHIPMENTS
EU-28 STEEL DISTRIBUTION 99 97 97
INDEX 100 94 92
INDEX 90
INDEX 80
2011
2012
2013
2014
2015
2016
COPYRIGHT: EUROMETAL ALL RIGHTS RESERVED
SOURCE: EUROMETAL

19. BUT KEY NATIONAL PLATE DISTRIBUTION MARKETS NOTED
RATHER DIVERGING BUSINESS CYCLES
2010 = INDEX 100
INDEX 160
157
SHIPMENTS UK
STEEL DISTRIBUTION
148
148
146
137
INDEX 140
132
SHIPMENTS DUTCH
STEEL DISTRIBUTION
137
137
121
119
INDEX 120
114
113
SHIPMENTS GERMAN
STEEL DISTRIBUTION
110
106
INDEX 100
101 99 94 84
INDEX 80
2011
2012
2013
2014
2015
E2016
COPYRIGHT: EUROMETAL ALL RIGHTS RESERVED
SOURCE: EUROMETAL

20. TO MAINTAIN PRODUCT AVAILABILITY FOR END USE SEGMENTS
REGARDING STOCK AVAILABILITY, PLATES ARE BASICALLY SLOW MOVERS COMPARED TO OTHER PRODUCT LINES, WITH CONSEQUENT HIGHER WORKING CAPITAL REQUIREMENTS
TO MAINTAIN PRODUCT AVAILABILITY FOR END USE SEGMENTS
2014 STEEL DISTRIBUTION STOCKS EXPRESSED IN DAYS OF SALES
PLATES ALL STEEL PRODUCTS
NETHERLANDS
DAYS DAYS
247 DAYS
110 DAYS
GERMANY
145 DAYS
84 DAYS
EU-28
109 DAYS
77 DAYS UK
81 DAYS
66 DAYS
SWEDEN
74 DAYS
69 DAYS
CHART: EUROMETAL 20 20 20

21. OUTLOOK ON 2017
IN 2017, GROWTH PERSPECTIVES OF EU PLATE MARKET WILL REMAIN STALLED
EU PRODUCERS WILL CONTINUE TO FOCUS THEIR MARKET EFFORTS IN DIRECTION OF PREMIUM QUALITY PLATE PRODUCTS AT THE EXPENSE OF COMMODITY PRODUCTS
HEAVY ANTI-DUMPING DUTIES ON CHINESE IMPORTS WILL FURTHER TIGHTEN AND PRESSURE THE COMMODITY SEGMENT OF THE PLATE MARKET
FOR EU STEEL DISTRIBUTION, MANAGING THE SUPPLY SIDE TO PROCURE COMMODITY PLATE FOR END USE SEGMENTS WILL BECOME EVEN MORE COMPLICATED
SIGNIFICANT RISKS PREVAIL REGARDING SUPPLY CHANNEL DISRUPTIONS FOR COMMODITY PLATE USING EU INDUSTRIES

22. STEEL DISTRIBUTION & SSC SUMMIT 2017
EUROMETAL WORLD
STEEL DISTRIBUTION & SSC SUMMIT 2017
World steel distribution & SSC at the Crossroads
Düsseldorf, Germany, Hilton Düsseldorf Hotel, May 2017
Platinum Sponsors:

23. MORNING SESSION 11 May 2017 SESSION A 09.00 – 10.30 HRS GLOBAL CONTEXT
Traditional steel business structures have entered disruptive mode. Struggling for better margins will shape new market behaviour patterns pushing for further consolidation.
09.00 – KEY NOTE PRESENTATION AND GLOBAL CONTEXT
- Key Note Presentation: Dr. Edwin Basson, Director General at WORLD STEEL ASSOCIATION, will comment changing structures in World steel and in EU steel.
- The Changing Patterns of Global Steel Trade Flows
Matt Watkins, Principal Consultant with CRU, London
- Impact of EU Steel Trade Cases on Steel Distributors, Steel
Traders and Steel End Use Segments
Alexander Julius, CEO of MACROMETAL, an Hamburg
based steel trader.
Coffee break
SESSION A
09.00 – HRS
GLOBAL
CONTEXT

24. MORNING SESSION 11 May 2017 SESSION B 11.00 – 13.00 HRS CUSTOMERS
Understanding the demand outlook is key to optimize steel supply chains. On the other hand, prevailing overcapacity on the supply side is heavily challenging the balancing of demand and offer. Market pressures continue to persist and will characterize steel markets in 2017.
11.00 – CUSTOMERS & SUPPLIERS
Customer Insights
- from Automotive Sector:
Cosmin Bakai, Commodity Manager Global Steel Purchase, Autoliv
Berne Zetterstrom, Steel Commodity Buyer, Autoliv
- from Steel Construction sector:
Speaker from Timmers Cranes & Steelworks, invited
Suppliers Insights
Antonio Marcegaglia, Chairman & CEO of Marcegaglia,
Roland Junck, Executive Chairman of British Steel,
Sebastian Bross, Member of Management team Salzgitter Flachstahl
13.00 – Lunch Break
SESSION B
11.00 – HRS
CUSTOMERS
& SUPPLIERS

25. AFTERNOON SESSION 11 May 2017 SESSION C 14.00 – 16.00 HRS
Steel distributors & SSC are constantly adapting their business models to the ever changing patterns of local and regional steel demand. So, there exist quite a large variety of business models depending on regional markets like Europe, North America, Latin America and Asia.
14.00 – 16.00: DISTRIBUTION & SSC BUSINESS MODELS
Jens Lauber, EUROMETAL President & Managing Director Tata Steel Distribution Europe,
Vijay Goyal, CEO ARCELORMITTAL Distribution Solutions,
Josu Calvo, CEO GONVARRI S.S.
Mikael Nyquist, President TIBNOR
Pierre de Silly, General Manager EDGEN MURRAY, a subsidiary of SUMITOMO Corporation
John A.Purcell, Vice-president Leeco STEEL, an O’Neal Industries company.
SESSION C
14.00 – HRS
DISTRIBUTION & SSC
BUSINESS MODELS

26. SITE VISITS 12 May 2017 SITE VISITS
ALTERNATIVE ONE: Maximum 20 participants
09.30 – HRS: Visit of Tata Steel Hille & Müller
strip electroplating facility, Düsseldorf
Hille & Müller was the first company in the world to produce electroplated steel strip, with now over 100 years of experience and longstanding commitment to innovation.
Tata Steel Hille & Müller is the world’s leading expert in nickel-plated cold rolled strip.
ALTERNATIVE TWO: Maximum 20 participants
09.30 – HRS: Visit of EUROPIPE GROUP, Mülheim an der Ruhr.
EUROPIPE Group is one of the largest global suppliers of welded large diameter steel pipes for the gas & oil industry, with production and processing facilities in Germany and the USA.
Important Notice: Participants to site visits will be registered following the principle “first come first served” up to a maximum of 20 participants for each site.
SITE
VISITS