There are 3 reasons why we are confident that the ferroalloy market will recover in the coming months. Read our insight to find out more.
At Al.Fa. Laminati we know the iron and steel markets well and we monitor the dynamics of the industry to help our customers schedule their supplies also based on seasonal trends.
Over the past summer, for example, we witnessed a decrease in demand for ferroalloys, but this trend did not worry us because we know it was entirely physiological. During the summer months, production drops and consequently demand for raw materials does too, but in the coming months demands will start to rise again with rather significant numbers. Here’s why.
The protection of the iron and steel market
In the 4th quarter of 2023 we expect to see an increase in the demand for ferroalloys on the Italian market and this forecast is supported by a number of factors that have characterised the entire iron and steel sector in recent months.
Policies to protect local productions have, in fact, reduced the purchase of raw materials from foreign partners, encouraging the collaboration between manufacturing companies and suppliers of ferroalloys based in Italy. As Al.Fa. Laminati, therefore, we can estimate that in the coming months our collaborations with Italian foundries and iron and steel companies are destined to grow.
Stable costs for ferroalloys
Another aspect that builds our confidence in our 4th quarter performance is the fluctuation in raw material costs. After a few rather rocky periods, the cost of ferroalloys has now stabilised, allowing manufacturing enterprises to make medium term investments and organise supplies with longer lead times. For us, this means more consistent and lasting collaborations.
Our integrated logistics
The success we strive to achieve in the coming months is also driven by our in-house efficiency, which allows customers to schedule their supplies without overloading the warehouse. Our integrated logistics, streamlines the production processes of our customers, making them more lean, more consistent and allows companies to focus on their business activities without fear of being left without raw materials.
Although there was a slight decrease in demand in the past few months, we are hopeful for the future and confident that in the coming months our company will achieve its 2023 targets.