The French longs market remains stagnant amid stable pricing and a low volume of order intake across the value chain, Kallanish hears.
The fourth quarter is reflecting a lacklustre performance across all products, as the ongoing weakness in the local construction sector continues to impact steel.
Distributors and mills are experiencing challenges as customers are hesitant to commit to purchase volumes and although there is some modest end-year restocking, both sales volumes and margins are under pressure.
Rebar prices are holding steady in comparison to the end of October. Sellers indicate that current pricing is not a primary concern, emphasising that the key objective is to boost sales; however, there are no indications of a recovery in consumption.
Domestic rebar is pegged at €590-610/tonne ($621.60-642.7/t) delivered, based on volume and customer specifications.
Spanish-origin rebar prices in France are not impacting domestic sales. By contrast, some Italian steelmakers continue to be active in southern France, offering prices that are lower than those in the domestic market.
At present, domestic merchant bar prices also remain stable on-month, hovering at €240-250/t delivered. Including €420/t size extras, effective delivered levels are now at €660-670/t.
The prices for the first category of sections have stabilised month-over-month at approximately €760-770/t delivered.
However, projections indicate a potential increase of €20/t, as a major steel producer stopped sales and is anticipated to elevate its pricing levels, according to sources.
In the first quarter of 2025, multiple mills in Germany and France are scheduled to implement production stoppages for several weeks, aligning with rising energy prices in an attempt to achieve balance between demand and supply.
Many French companies across the steel value chain are currently experiencing financial challenges, leading to delays in payments.
ArcelorMittal’s French service centre division is undergoing a restructuring process, which may result in the closure of two service centres in the country. The Reims and Denain service centres, in northern France, are facing economic difficulties attributed to a downturn in the domestic steel sector.
ArcelorMittal Centres de Services management met with its service centre units last week to announce a project to reorganise the company and adapt its production capacities.
“In a difficult economic context, ArcelorMittal Centres de Services is facing a sharp drop in activity among its industry and automotive customers which has accelerated in recent months,” an ArcelorMittal spokesperson tells Kallanish (see Kallanish 22 November).
Natalia Capra France
