Prices remain mostly stable this week for French rebar, despite the downturn in the European steel sector. Like in June, however, buyers are withholding their purchases, with consumer confidence very low.
Small tonnages are being bought on a weekly basis amid a quiet market that is forecast to continue through August, Kallanish notes.
Domestic rebar contracts are hovering at €780-800/tonne ($815-800/t) base ex-works. Depending on volume and order, this can vary slightly. Considering a €260-270/t average for size extras, effective values are at €1,040-1,060/t ex-works, sources suggest.
In France, like in all other European countries, scrap is set to lose again significantly this month as the international market is waiting for prices to reach bottom.
In Italy, Spain and Germany, a similar situation of low orders and sluggish rebar sales is reported but with lower prices in southern Europe – about €800/t ex-works including size extras.
On a brighter note, Turkish producers increased their rebar quotes in both domestic and export markets last week due to improved demand and rebounded scrap prices. Quotes, at $690-710/t fob Turkey, however, are yet to return to mid-June levels.
Natalia Capra France