French rebar activity remains weak French rebar demand continues to be weak in October. Distributors tell Kallanish that September was also a weak month, but sales have become particularly low in October and buyers say they cannot see light at the end of the tunnel.
Expectations are for some restocking to happen in November for end-year fiscal reasons. Uncertainty, however, looms over end users due to declining activity in the domestic construction sector. Construction companies are facing a slow private residential construction market, particularly in the Paris area.
Domestic steelmakers continue to implement stoppages but this does not seem enough to balance demand and supply. French rebar contracts are falling on September by some €50-60/tonne ($49-58). Contracts, including size extras, are at an average of €890-910/t ex-works, including size extras. The low and high points of the range depend on client and tonnage, sources suggest.
Some lower-priced sales are being reported, particularly in southern France, coming from Spanish producers, Kallanish notes.
Natalia Capra France