French steel prices have largely remained stable since the €10-15/tonne ($11-17/t) hike observed in March. Profitability remains a significant concern for flat and long steel producers, service centres, and end-users, Kallanish notes.
The outlook for May appears to be unfavourable, with multiple sources anticipating a decline in longs prices, as well as potential decreases in coil derivative values over the upcoming ten days.
“Seasonally, demand in May declines significantly. The market is dominated by significant uncertainty. Despite producers’ push for potential price increases, particularly for flat products, I do not see any increase happening in the coming weeks,” a steel purchasing group source comments. Another source forecasts a price decline in May for all steel products as a result of the seasonality and anticipated domestic scrap price fall.
Another buyer indicates margins are tight throughout the value chain. The first quarter saw lacklustre demand for longs, with only modest restocking occurring in January. Variations were noted based on geographical regions and sectors. The western region of France appears to be showing marginally better performance compared to east.
A rebar distributor in the south noted a period of subdued activity during January and February, followed by a modest improvement observed in March and the early days of April. Producers from Spain and Italy are entering the French market with competitive rebar pricing, thereby impacting sales of domestic products.
Domestic sections and merchant bar prices are flat. First category beams are at €780/t delivered while domestic merchant bar prices in France are observed at €250-260/t base delivered, with effective prices, inclusive of size extras, at €670-690/t delivered. The domestic rebar market is also flat. Values are hovering at €630-645/t delivered on average, sources suggest.
Natalia Capra France
