French rebar demand weakens

The French market remains particularly quiet, with demand weak and high stocks at distributors and construction companies. Prices, however, remain stable as producers around Europe are reducing capacity each week. The lower consumption of rebar involves all southern and western European countries, Kallanish hears.

The French construction sector is particularly impacted by the slow economy and saw private residential building permits decrease significantly in Q1 in an on-year comparison. Distributors report a good month in March with low volumes but frequent orders. Rebar stocks remain high. Construction companies are said to have visibility until June and July with building sites underway but lament a lack of new orders. April was a weak month in France because of the Easter holiday, and May should bring no demand pick-up due to the several bank holidays.

French domestic rebar prices have neither increased nor fallen. No competitive offers of Spanish and Italian material have been reported in the south of France over the past week. Values remain at €730-750/tonne ($803-825/t) delivered, depending on volume and clients, sources suggest.

Natalia Capra France