French long products transaction prices have risen sharply since early March compared to pre US-Iran conflict levels, Kallanish hears.
After an initial wave of restocking driven by buyer concerns of further price increases following the outbreak of the conflict, demand has since eased across most product categories over the past two weeks.
Rebar demand is showing signs of recovery after the Easter break, however, with buyers returning to the market amid fears of supply disruption linked to the conflict.
Sources confirm that longs procurement during the March restocking phase has created inventory levels that will take time to deplete. The general demand landscape remains challenging. The French economy has been weak in the first half of the year and inflation is rising. The country is now entering an extended period of reduced commercial activity, with the Easter break, mid-term school holidays and several public holidays in May set to dimmish sales in the weeks ahead.
Longs prices have risen by around €40/tonne ($46.16/t) on average against pre-conflict levels. Apart from rebar, for which consumption remains dynamic, general market activity is stalling as distributors struggle to absorb the increases and pass them on downstream.
A large buyer notes there is no panic buying in the market, while a distributor warns that demand has turned very weak following a solid March.
First-category section prices is now at €800/t delivered. Rebar has increased steadily over the past weeks to €660-690/t delivered. Merchant bar prices have also increased significantly, by some €40/t on average reaching €300/t delivered from €260-270/t to a level of €700-720/t including size extras.
