Market for steel service companies

BE Group and other steel distributors play an important role in the value chain. They bridge the gap that exists between steel producers’ delivery capacity and steel consumers’ needs. The individual steel producers provide a limited selection of products, often in bulk and with relatively long lead times. However, many steel consumers seek a single coordinated supply of several different products in smaller quantities with short delivery times. Purchasing is then normally conducted via a steel service company, where BE Group is one of the leading producer-independent suppliers.

The road to market – from producer to customer

The chain from production of the steel to its final use by the purchaser of the steel can mainly take place in two ways, either the tonnage is supplied directly from the steel mills to the customers or delivered through distributors and steel service centers, i.e. BE Group’s market.

The steel mills most often sell directly to customers that consume large volumes of steel in, for example, the shipbuilding and automotive sectors. Direct deliveries are more common in the flat products segment, where volumes are often large and the need for further processing before delivery is lower.

Purchases through distributors and steel service centers meet an important need among customers by being able to offer single coordinated supply of several different products in smaller quantities with short delivery times. The materials are more often delivered in a further refined condition.