The French rebar market remains in a lull with prices that remain high despite their recent drop. Low consumer confidence and the fear of recession continue to hamper sales.
Like in June, very small tonnages are being bought from week to week, Kallanish learns from sources. Domestic rebar contracts are now hovering at €730-740/tonne ($744-755/t) base ex-works, some €40/t less compared to June. Considering a €260-270/t average for size extras, effective values are at €1,000/t ex-works on average, sources suggest.
High values are also reported in Germany, but prices in southern Europe are lower. In the latter region, mills are implementing stoppages to address the current overcapacity. Rebar there is sold at below the level of €770-800/t ex-works, including size extras.
French rebar sales remain low throughout the value chain with customers adopting a wait-and-see attitude. Some demand is expected to resume in the second half of July as customers should stock up before the August summer break. Stocks however remain high.
Natalia Capra France