The French rebar market is forecast to remain quiet in July, continuing the current trend of low orders and uncertainty. The weak performance of the private residential construction sector is preventing buyers from purchasing despite stocks being low. Rebar prices remain stable on-month, after sentiment in the construction industry deteriorated in June.
Rebar orders are being carried out back-to-back but, given the low orders seen in June, distributors who spoke to Kallanish hope that some restocking may happen before the 14 July bank holiday for September delivery.
There is a “hunger for orders” and continuous incursion of lower-priced Italian, Spanish and now also German material, particularly in the south of the country. Domestic rebar prices are hovering at €570-610/tonne ($618-661) delivered including size extras, depending on tonnage.
Customers and construction companies have low stocks. A distributor says it is impossible to forecast given the current low visibility, and sellers are playing it by ear on a daily basis. Another source says it is difficult to think about price increases like those happening in other countries where steelmakers are pushing up quotes to stop prices from dropping. The French and German markets are now performing worse than in Italy and Spain, Kallanish notes.
Natalia Capra France
