French long steel prices remain largely stable in comparison to December; however, market participants anticipate mills will increase quotes across long products, Kallanish hears.
Market activity has not fully rebounded following the year-end holiday break, with both sellers and buyers indicating a sluggish beginning to the year. A surge in buying activity is however expected next week. With minimal change from the fourth quarter, moderate volumes and frequent but modest-tonnage purchases are anticipated to dominate the market in the upcoming weeks.
The primary concern is that the distribution sector has failed to transmit downstream the price increases carried out in December, as the performance of the construction sector continues to underwhelm. A significant buyer of long products expects the construction sector in France will remain lacklustre throughout the first half of the year. According to a distributor, “we do not see the light at the end of the tunnel, and consumption has not yet resumed.”
Domestic merchant bar pricing in France remains stable month-to-month, within a range of €230-250/tonne ($235.9-256.4) delivered, depending on volumes. Effective levels, including size extras, are hovering at €640-670/t delivered. The first category of sections is also flat on-month, hovering at around €760-770/t delivered.
The price increases enacted in December for merchant bar and beams failed to produce the desired results. The domestic rebar market is experiencing a mild price uptick of about €10/t; however, there has been no notable improvement in sales activity.
Rebar prices are currently averaging at €620/t delivered, occasionally reaching €630/t for smaller quantities, sources suggest.
A purchasing group source indicates that if the current subdued market conditions persist, the distribution sector will be compelled to scale back production levels.
Natalia Capra France