French long steel prices for deliveries scheduled in December and January are rising notably. Mills are increasing quotes for nearly all products by €20/tonne ($21.1), effective immediately. The move is driven by elevated production costs, high energy prices, and compressed margins, Kallanish hears.
All transaction prices remain stable; however, moderate increases are anticipated this week. Construction firms and a purchasing group indicate demand is persistently low. November saw a significant decline in sales, and projections indicate that December may reflect similar underperformance.
No restocking has occurred prior to the start of the winter holiday period. Distributors point out business is back-to-back, with little visibility and no indications of recovery in the construction sector. There is however some demand stemming from infrastructure projects in major urban areas.
A purchasing group reports that, in a year-on-year comparison, volumes have decreased by approximately 3%, while margins have dropped significantly. Domestic rebar deals are closing at €600/t average delivered. However, for December delivery, new asking prices have increased to €620/t.
Market participants show a reluctance to accept price increases, with some saying that if prices are elevated, their sustainability will be questionable.
Currently, domestic merchant bar prices are also stable month-on-month, maintaining a range of €240-250/t delivered. Including size extras of €420/t, effective levels range between €660-670/t delivered. Clients are being informed of price increases of €20/t.
The initial category of sections has stabilised month-on-month at around €760-770/t delivered. A producer raised values by €20/t last month; however, the move did not yield the desired result.
Natalia Capra France
