Steel Conduit Tube: What is going on?

Published: April 29, 2021

25.05.22 :- By Andrew Scobbie

 

Steel Conduit Tube

Steel conduit tube is one of the most frequently used products within the M&E sector. From small commercial applications to multi-billion-pound projects, there is never a good time to be out of stock – especially being in the role of Purchasing Manager.

But, with the current state of the world wreaking havoc at every level of the supply chain, the production of steel conduit itself has become increasingly challenging.

Zero Covid Policy

One of the leading contributors to the reduction in manufacturing capacity is the firm ‘Zero Covid’ policy in China. Probably the most prominent example of this is Shanghai. Home to over 26 million people and the financial centre of China, with the Omicron variant rapidly increasing daily cases of coronavirus, the city went into a partial lockdown towards the end of March. As the situation worsened, a full lockdown was imposed just over a week later on the 3rd of April.

This strict approach is common across China, despite the fact that approximately 90% of the population is fully vaccinated.

With Metpro Group’s steel conduit tube manufacturing capability being based in China, these now seemingly draconian measures have created several challenges for our in-country manufacturing and logistics teams, the most impactful of these being;

Limited to no facility access due to road closures

Manufacturing at least slows down and at worst stops entirely.

Multiple daily Covid tests for drivers

Up to three or four tests each day with drivers being held in quarantine or delayed until a negative test is provided.

It goes without saying that the above highlighted points are somewhat concerning.

Already in 2022, we have seen our conduit tube facility closed for a period of 60 days. This saw the manufacture of our new stock halted, naturally having impacts further down the line.

Fortunately, I still have my job due to the increased stockholding policy of Metpro, an approach we have practised as a business since the economic collapse of 2008. But this example shows just how quickly and significantly a seemingly small hold up can snowball into something far more significant.

Raw Material

As an additional bi-product of the zero covid measures and compounded by the conflict in Europe, not only are product manufacturing facilities seeing closures but also raw material factories, as they are deemed non-essential.

With a surge in demand following large parts of the world re-opening, huge backlogs to fill and much reduced output due to the war in Ukraine, these closures have resulted in 0% capacity at mills and slitting services in some instances.

When it comes to steel conduit tube, specifically Class 4 HDG, this lack of material has another knock-on effect – galvanising baths being switched off. As extremely costly pieces of equipment to run, facilities simply cannot maintain their operation without sustained commitments on raw material.

We find ourselves in a very paradoxical situation.

What is the Outlook?

Speaking purely from the perspective of Metpro Group, uncertainty remains the word of the day.

As a business, our in-depth stockholding policy have enabled us to weather many storms and we are in contact with our teams daily. We remain committed to stock and have worked to bring forward orders where possible, as well as increasing future manufacturing capability. Domestically, the shipping & logistics situation is in a sustained state of flux, some challenges abating with others popping up in their place, but we are working through it.

Having joined the business only last year, being thrown in at the deep end would have been a less intense introduction to the world of steel conduit tube but what more can we do but ‘keep calm & carry on.’ And this is exactly our intention.

We will continue to update our customers and the industry on what we are seeing and how we believe the future will unfold.

If you would like to find out more about anything discussed in this article, please feel free to contact me directly or alternatively, contact our team on 0121 552 2100 or by email at [email protected].

You can also visit metpro.co.uk to check real-time stock levels 24/7 as well as download any technical information you require.