2019 for Italian wire manufacturers: Metallurgica Locatelli share their opinion

Metallurgica Locatelli is a leading brand name in the world of low carbon steel wires. Established as a small business in 1920 by Fortunato Locatelli, the firm has developed considerably, becoming an important joint-stock company. Metallurgica Locatelli’s facilities cover today an area of 20,000 m2 and boast over 40 employees.

With 2019 on the horizon, we interviewed Sales Director Giovanni Locatelli, who gave us an overview of market trends and outlooks.

What is the best investment you have made this year?
In 2019 we have invested in a new annealing furnace for rod and wire. At the moment the plant is still in the installation phase but is expected to be operational in early 2020.

What impact has the recent trend in raw material prices had on your business this year?
Over the year, raw material prices have fallen significantly, and this has played out in our favor. However, this situation won't last for long. At the moment, rumors say prices will see hard to quantify increases, which would make the situation harder for us.

In a previous interview this year, you foresaw that 2019 would be difficult, with sterile demand and an inflated supply. In hindsight, were you right?
We were right, indeed. Unfortunately, we have noticed that some manufacturers offer inconsistent prices in an attempt to make up for the low level of demand and take orders. What they don't realize is that this approach does nothing but further damage the market.

How do you think the situation will evolve next year?
As far as the first months of 2020 are concerned, there is no sign pointing to an increase in demand. The economic and political situation is way too uncertain.

Generally speaking, there seems to be a lot of concerns about the future of the automotive industry. Electric motors, hybrids, hydrogen motors: what do you think?
That's true. The crisis has hit the automotive sector most of all: it is necessary to implement specific rules in order not to create uncertainties in the car market and the purchase of cars.

The year is not over until you have set good intentions for the new year, what are your projects for 2020?
In the new year, we plan to increase the production of qualified wires with high margins, even if it means it will be to the detriment of our flagship products.

To find out more, please contact the company directly via the information on the left.