French longs slip but coil derivatives rise
French long steel prices have declined by around €10/tonne ($11.63/t) on average compared with early October. However, coil derivatives, including tubes and sheets, are rising by €20-30/t, driven by higher coil procurement costs linked to CBAM and the new safeguard proposal, Kallanish hears.
Market sentiment remains clouded by uncertainty. Buyers report that volumes are holding near last year’s levels, but tight margins and weaker consumption are a growing concern. One buyer of both flats and longs expects future consolidation in the market: “We are too many, and there is not enough consumption for everyone,” the source notes, anticipating a reduction in the number of distributors and service centres.
Price increases for coil derivatives are largely considered artificial, not supported by genuine demand, while the cost of CBAM and the new safeguard remain difficult to quantify.
In southern France, the presence of Spanish and Italian producers continues to press long steel prices slightly below northern levels. Rebar values have declined by approximately €10/t since early October, averaging €590-610/t delivered, with sales limited to small volumes.
Sections have also dropped around €10/t, reaching €740-750/t delivered, while merchant bar prices fell €10/t under pressure from Spanish competition and are now at around €210/t base delivered.
Long product prices are not expected to rise in the coming weeks, as downstream margins remain too tight to support increases. Given the sluggish market and strong European producer competition, values should remain at current levels until year-end.
Natalia Capra France
Thyssenkrupp Steel withdraws from WV Stahl
Germany’s largest steelmaker, thyssenkrupp Steel, has withdrawn from the German Steel Association (WV Stahl), which traditionally represents national steelmakers’ interests.
Thyssenkrupp Steel has terminated its membership, effective 31 December, it tells Kallanish.
“Given the current economic challenges, we recognise our responsibility to use our resources as efficiently as possible,” the company says. “This applies to both the time invested by our personnel and the costs of membership. This decision explicitly does not represent a departure from industry-wide dialogue on political issues of common interest and we will continue to support the WV Stahl’s positions on key industrial policy matters.”
“As Germany’s largest steel producer, our company is aware of its special responsibility and will continue to engage in a committed and focused dialogue with policymakers, regulators, and market partners,” it adds.
“We regret this decision, especially given that thyssenkrupp Steel is actively involved in the association’s work during these challenging times,” WV Stahl notes.
This comes amid preparations for Germany’s national steel summit, which Chancellor Friedrich Merz will hold on 6 November in Berlin, to find ways to overcome the industry’s crisis.
Last month, thyssenkrupp Steel temporarily shut down blast furnace No.9 at its Duisburg-Brückhausen site (see Kallanish passim). The company attributed this decision to weak demand for steel in Europe and increasing pressure from imported products, which negatively impacts the competitiveness of local production. The firm has appointed Marie Jaroni its new chief executive, effective 1 November.
The company is in intensive negotiations with Jindal Steel International regarding its steelmaking business. The Indian group is prepared to invest over €2 billion ($2.29 billion) in the development of electric furnaces and the completion of a green steel production project in Duisburg.
Svetoslav Abrossimov Bulgaria