French rebar deal values are ticking up by €10/tonne ($10.7) on-week. However, demand remains stagnant and the distribution sector does not foresee any changes in consumption or prices until the end of the first quarter of next year, Kallanish learns from market sources.
Sentiment remains negative. Despite having low stocks, distributors are refusing to commit to higher volumes. While the public construction sector is somewhat supporting the market, the private residential segment is suffering due to lower sales, high production costs and high interest rates. The rebar contracts implemented so far in November continue to be for small volumes.
Both steelmakers and distributors are suffering from tight margins. After companies across the supply chain posted very high earnings in 2021 and 2022, this year, distributors and construction companies will cover their costs but will not make any profit. The outlook for the first quarter of 2024 is no different from Q4 this year. The market is beginning to see payment delays.
French rebar prices are hovering at €620/t delivered on average, sources suggest.
Natalia Capra France