French longs market stalls, rebar weakens

Demand for French long products is forecast to remain sluggish until the end of the year. Some buyers anticipate an apparent demand recovery at the end of this month or the beginning of November, when construction companies and distributors replenish their inventories for year end, Kallanish hears.

“It is possible that demand will persist in its current state for the next six months. In these uncertain times, we see no indication of recovery in the construction sector, and price increases will not be sustained,” says a large local buyer.

It appears that rebar prices are declining moderately, by some €10/tonne ($10.91) in contracts. A seller of rebar, however, has a cautiously optimistic view. He reports an average level of order intake and says that production stoppages are not necessary at present. “Customers are ordering, although volumes per contract remain limited. There is a fear of commitment,” he states.

Merchant bar and beam prices are stable in comparison to the beginning of the month. According to sources, order intake is low for these products and lower-priced merchant bar supply from other countries, particularly Spain, has returned.

The longs price increase that ArcelorMittal implemented in Europe last week has not yet been realised in France. Another source asserts the steelmaker is merely increasing prices to prevent them from falling.

Stocks are low in distributors’ yards. Both distributors and end-users intend to continue keeping inventories low.

Domestic rebar is hovering at approximately at €590-610/t delivered. Merchant bar prices currently stand at €250/t delivered, while domestic transactions for the first category of beams in France are stable in a range of €760-780/t delivered, dependent upon the customer and volume.

Natalia Capra France