Metal wire
Three questions for Mr. Giese, Drahtwerk Wagener CEO, on the current market situation
The wire and tube market is going through a hard time due to the current unstable situation. We had the chance to ask Mr. Markus Giese, CEO of Drahtwerk Wagener GmbH & Co., his impressions and opinions about it in a brief interview.
Raw material shortages are having a huge impact on the market. Are they also causing troubles to your company?
In my opinion, the scarcity of raw material that caused so many problems last year has been overcome. Most of the products that we need to run our production are available in a reasonable period of time. Of course, the prices exploded, but this is a different story. On the other hand, we are facing many problems in obtaining spare parts for our machinery and equipment. We have noticed that many components are not available because of interrupted supply chains. Moreover, it is difficult to find experts who can repair the machines. This may lead to a reduction in production capacity.
Are you having difficulties with international freight transport at the moment?
Trucks and ship availability is indeed a huge problem. Due to the war in Ukraine, many truck drivers went back to their country to fight in the war. So, the scarcity of drivers, which was already a problem before the war, has gotten even worse. Right now, I do not see any improvement in the short run. It seems that this job is not attracting too many people, even though the EU is trying to improve transport conditions with the EU mobility package. Furthermore, the combined transport of trucks and trains is not making any progress because here in Germany there are far too many construction sites in the railway system. Even if we would like to employ vessels to ship by rivers, they could only be used at half capacity because of low water.
If we talk about overseas transport, containers and vessels availability is still a massive issue. We are faced with continuous delays and postponements. The containers are stuck on vessels or in harbors because there are no trucks for the ongoing transport. On top of that, transport prices only know one direction - steeply upward.
What are your expectations about the overall market trend in the following months?
It is hard to predict how the demand will develop within the next few weeks and months. We are facing so many problems right now. Every single one has the power to cause a crisis. The combination makes it a very toxic cocktail. If you look at the war, that seems to have no quick end, the pandemic has not been overcome yet, the climate change is effecting our lives even more, the energy shortage we are facing today is most likely to continue in the very next future). And on top of that, there is the inflation, the EURO price loss, and the life cost rise - if you consider all of this, it’s very difficult maintaining a positive mood. Nevertheless, our job consists in finding solutions. Doing nothing and waiting is obviously the worst thing to do. So, we are ready to adapt to the circumstances and be in close contact to our suppliers and customers to support them in the best way we can.
Drahtwerk Wagener GmbH & Co. KG is a worldwide leader in drawn steel wire manufacture. With more than 150 years of activity, the Germany-based company produces a wide range of steel wires in all common surfaces, diameters, and packages.
