French rebar demand is now stagnating after a weak October. November is seasonally a weak month for sales due to the bank and bridge holidays of 1 and 11 November.
Distributors tell Kallanish that sales activity was acceptable in September but noticed slow sales in October, while this and next week are particularly quiet.
Because of uncertainty and the slowing global economy, the construction sector is ordering lower volumes and refusing to commit. Sellers doubt that in this climate buyers will want to restock for end-year fiscal reasons, as construction companies are facing slow private residential sales, particularly in the usually dynamic Paris area.
French rebar contracts continue to slide due to lower consumption. Including size extras, they are at an average of €800-850/tonne ($780-828/t) delivered. 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.
Natalia Capra France
