French rebar deal values are ticking up by €20/tonne ($21.5) on-month, in line with the wave of increases on long products registered in Europe. Despite the hike, demand remains relatively slow, with distributors’ purchasing volumes weak.
December has not brought any significant restocking so far. Buyers’ common intention is to keep stocks low and play it by ear. Sellers are turning over material from day to day, with little forward visibility. A source believes that some restocking will happen in January after the poor sales seen in recent weeks. Purchasing groups are trying to resist increasing prices and are resorting to buying abroad.
French rebar prices are hovering at €640-650/t delivered on average, Kallanish learns from market sources.
The construction industry in the country is giving no signs of recovery. The sector’s crisis is deepening, particularly in the private residential segment, and is now expanding to non-residential construction (see Kallanish passim). In the third quarter, the fall in new building sites exceeded 20%, while permits for new construction collapsed by almost 30%. The outlook remains negative.
Natalia Capra France
