French long steel prices have declined by around €10/tonne ($11.63/t) on average compared with early October. However, coil derivatives, including tubes and sheets, are rising by €20-30/t, driven by higher coil procurement costs linked to CBAM and the new safeguard proposal, Kallanish hears.
Market sentiment remains clouded by uncertainty. Buyers report that volumes are holding near last year’s levels, but tight margins and weaker consumption are a growing concern. One buyer of both flats and longs expects future consolidation in the market: “We are too many, and there is not enough consumption for everyone,” the source notes, anticipating a reduction in the number of distributors and service centres.
Price increases for coil derivatives are largely considered artificial, not supported by genuine demand, while the cost of CBAM and the new safeguard remain difficult to quantify.
In southern France, the presence of Spanish and Italian producers continues to press long steel prices slightly below northern levels. Rebar values have declined by approximately €10/t since early October, averaging €590-610/t delivered, with sales limited to small volumes.
Sections have also dropped around €10/t, reaching €740-750/t delivered, while merchant bar prices fell €10/t under pressure from Spanish competition and are now at around €210/t base delivered.
Long product prices are not expected to rise in the coming weeks, as downstream margins remain too tight to support increases. Given the sluggish market and strong European producer competition, values should remain at current levels until year-end.
Natalia Capra France
