Long steel prices in France are declining only slightly as producers have refused to give in to buyers’ demands for price reductions. However, coil derivatives, including welded tube and sheet, have experienced a significant price decline in the country so far.
Longs values remained relatively stable throughout the summer. A buyer has expressed concern that “panic is now spreading” as a result of numerous market participants claiming that September has not seen an appropriate resumption of activity following the summer break, Kallanish notes.
Distributors, who are witnessing a significant decline in flats prices, fear that longs values will also begin to decline in the coming weeks. In anticipation of a prolonged drop, distributors and construction companies are adopting a wait-and-see approach and refraining from making volume purchases.
In comparison to the end of July, prior to the start of the summer break, the average transaction value for domestic rebar has decreased by an estimated €10-15/tonne ($11.1-16.7), and hovers at approximately at €600-610/t delivered. A major buyer talks about the construction sector’s persistent poor performance and the nearly complete cessation of single-family home construction in France. Demand is currently reliant on infrastructure projects.
Meanwhile, merchant bar prices have also slightly decreased compared to August, currently standing at approximately €260/t delivered, sources suggest. Amid low-priced Chinese long product offers into Europe, buyers are reportedly considering offers from Asia for beams scheduled to arrive in November at a price of some €100/t less than domestic material. Nevertheless, the gap between imported and domestic prices should be significantly greater in order to attract buyers.
Domestic transactions for the first category of beams in France are also experiencing a modest decline, pegged in a range of €760-770/t delivered, dependent upon the client and volume. Prices of sections are expected to decrease in the coming weeks due to slow domestic consumption and lower import prices. Scrap is also anticipated to suffer another decline in October.
Natalia Capra France
