French rebar contract values are increasing on-month by €20-30/tonne ($23.28-34.92/t) following the escalation of the US-Iran conflict, Kallanish notes.
European producers have lifted offers due to rising production costs linked to higher gas and electricity prices, as well as increased oil prices for transport. Scrap prices in Western Europe have also edged up this month (see separate article).
Distribution sources say the month started very slowly, with the usual weak order intake, but demand jumped after the conflict escalated last week.
One distributor says his sales volumes have doubled compared with a typical week and points to some signs of “panic buying”. However, another large buyer shows a more cautious view of consumption. “The war is not in Europe. Producers do not pay for energy monthly like households, and consumption in France has not changed, particularly in construction, where activity remains weak,” he says. He, however, concedes that buying has picked up but doubts the recent price increases and higher order levels can be sustained.
French rebar prices have risen from an average of about €610/t delivered last month to €640-650/t delivered in recent days, sources indicate. One distributor in southern France says he has achieved up to €660/t delivered, depending on transport costs, as demand last week and this week has been particularly strong.
Author: Natalia Capra France
