French steel transaction prices are edging up by an average of €5-10/tonne ($6-12/t), as long product mills attempt to implement increases linked to higher production costs, rising scrap prices and the impact of CBAM on imports, Kallanish notes.
According to market sources, mills have announced hikes of up to €20/t, but buyers have generally accepted increases of no more than €10/t, depending on their December purchase levels.
Consumption remains weak, however, with several buyers telling Kallanish that price rises are proving difficult to pass downstream. Sources agree that CBAM is having only a limited impact on the longs market, where competition among European producers remains intense. While some restocking was reported in December, demand has been weak in January.
By contrast, sheet and tube prices are increasing gradually, supported by stronger protection measures on coil. Price increases for long products, however, remain uncertain.
One buyer notes that mills with a rigid attitude on price hikes are losing orders. Another large buyer adds he has purchased around three times less rebar than usual in France, instead sourcing material from other cheaper European suppliers.
French longs increases are mild as competition with other European producers results in cheaper material available to French buyers.
Sections mill prices are increasing by €20/t officially in France but not all European producers are implementing the hikes, while producers from Spain only increased values by €10/t for sales in France.
First-category sections in France have increased slightly from €730/t delivered last month to €735-740/t this month on average.
Domestic merchant bar prices are increasing in January contracts by some €10-15/t to €220-230/t base delivered, excluding €420/t in size extras. Rebar prices also ticked up by €10/t to about €600-610/t delivered on average.
Meanwhile, France’s construction sector continues to underperform. Market sources report cautious ordering from construction companies and do not anticipate any improvement before the second half of the year.
One source notes that infrastructure projects funded by the EU’s post-pandemic recovery programme are expected to fade in the second half of 2026 and eventually disappear, as EU rules require the funds to be fully allocated by year-end. Sources add that a substantial share of construction steel produced in France last year was absorbed by EU financed infrastructure projects, leaving the sector exposed as this support comes to an end.
