The French steel market remains subdued after the August holiday period. Prices are largely unchanged from July levels, with buyers seeing no justification for increases at this stage, Kallanish notes.
Some long product prices weakened over the summer, driven largely by competitive imports from Spain and Italy, particularly Spanish merchant bar and Italian rebar. According to one distributor, Italian rebar has at times reached southern France at discounts of up to €50/tonne ($58/t) compared to domestic prices.
French buyers are resisting ArcelorMittal’s latest, €30/t hike on European long products, as downstream demand is showing no sign of improvement. Market sentiment remains weak, with companies discouraged by sluggish steel consumption and a concerning political uncertainty which limits any investment plans.
Following a seasonally slow August, conditions are described as particularly challenging, with only “a handful of hard-fought transactions” taking place, according to one market observer.
Market participants expect prices to remain broadly stable, with scrap values likely to soften slightly. Profitability remains a key concern. Producers have announced a €20/t increase on tubes and sheets, aligning with the recent uptick in coil prices and anticipated rises on flat products driven by CBAM and the safeguard replacement measure. Buyers are currently resisting these price hike attempts.
In the longs segment, foreign merchant bar producers who attempted price increases in France in recent months have lost orders. Buyers expect this trend to persist. Current merchant bar quotes stand at €220-230/t base delivered for larger volumes, excluding size extras. Rebar prices have also softened by around €10-15/t since mid-July. They are now at €590-610/t delivered, depending on volume. Sections prices remain stable at €760/t delivered.
A major buyer reports he will not place orders for long products in France at higher prices, citing weak downstream demand and tight margins. While volumes are “not that bad”, low profitability is driving many firms to pressure producers to maintain values.
Natalia Capra France
