Demand for French long products remains weak and is projected to stay low in the upcoming months, with the outlook for a consumption recovery remaining bleak, amid slow orders and back-to-back purchasing by customers, Kallanish hears.
“September showed poor performance, while in October we experienced acceptable sales; however, the market has shown a notable decline in activity over the past two weeks,” states a local buyer.
The turnover for construction companies and distributors this year is projected to be considerably lower than that of 2023. Buyers are indicating a decrease in sales volumes, but their primary concern lies in the low profitability, diminishing turnover, and sluggish market conditions.
Rebar prices appear stable when compared to the end of October, following a moderate decline observed last month. Market participants are primarily focused on the lack of visibility and the prevailing uncertainty rather than price levels. Domestic rebar is pegged at €590-610/tonne ($634.5-656.1/t) delivered, based on volume and customer specifications.
A European mill indicates a troubling and persistent sluggish market characterised by low profitability. Customer financial difficulties are beginning to arise as the market is showing “a structural reduction in activity within Europe”, the source explains.
Spanish-origin rebar prices in France are not impacting domestic sales. By contrast, Italian steelmakers are active in southern France, offering prices that are lower than those in the domestic market.
“There are currently no indicators suggesting a recovery. It appears that we may have undervalued the magnitude of this crisis. In 2025, we can expect that the more resilient companies will endure, while we may witness an increase in bankruptcies,” a large buyer says.
He also notes the distribution sector in France is disproportionately large in relation to current consumption levels. “The French longs market is now stagnant, with prices remaining unchanged. Production halts this Christmas are likely to extend significantly,” he adds.
He expects that across all long products, the French market is to experience some resurgence in demand as buyers prepare to restock before year-end.
At present, domestic merchant bar prices slightly decreased on-month, hovering at €240-250/t delivered. Including €420/t size extras, effective delivered levels are now at €660-670/t. The first category of sections is around €760-770/t delivered or slightly more for larger orders, including extras, sources suggest.
Natalia Capra France
