Long steel prices in France are experiencing slight increases or remaining flat, depending on each segment, with activity still subdued, as reported by various distributors and buyers. There is however a slight increase in apparent demand for rebar and beams, due to the Olympic Games in the Paris area and a technical restocking, Kallanish notes.
Prices have been raised this month by both Spanish and local longs producers, which is reflected in contracts. The increases in prices, on average €10/tonne ($10.8), are relatively moderate, sources point out. Stockists are making some purchases ahead of the August mill stoppages, while the distribution sector remains cautious in its buying approach. According to two sources, construction volumes continue to be low, with no sign of improvement.
The average delivered value for domestic rebar stands at €625/t this month. Merchant bar prices are experiencing slight increases in deals compared to last month, with prices at around €660-670/t delivered.
Sections are seeing renewed apparent demand, which is bolstering prices. Producers have successfully boosted values by approximately €20/t since the start of June. The estimated range for the first category of sections is around €760-770/t delivered.
Spanish producers have contributed to the price hikes in beams and merchant bar by also increasing their offers in France. According to reports, their willingness to compromise on prices has faded compared to recent months.
With the production disruption at Liberty Ostrava, sales opportunities in Europe have opened up for mills in the region. One producer confirms his longs order book has been satisfactorily filled.
The French construction crisis is continuing, as reported by national construction federation Fédération Française du Bâtiment (FFB). By the end of April, year-on-year, new building permits and new residential construction fell by 10.2% and 10%, respectively. In the first quarter, there was a significant decline in sales within the private property sector, with a drop of 29.9%. Similarly, sales of private properties experienced a sharp decline of 25.9% compared to the previous year.
Natalia Capra France