French rebar values decline on weak activity

French rebar activity continues to be slow, with orders being carried out only back-to-back and visibility low. May was a poor month for order intake, although the distribution sector reported good shipment levels. Rebar demand from other European markets such as Germany was also subdued last month and continues to be weak.

Activity in the construction sector in France but also in Germany is stalling and hampered by low demand for private residential buildings. Buyers’ stocks continue to be reported at relatively low levels. All local long steelmakers are expected to continue to implement production cuts in June, as they did in May, to address overcapacity.

Domestic rebar prices are declining again, from the levels of €650-680/tonne ($695-727) delivered to €590-630/t delivered, depending on volume and customer, Kallanish notes.

Natalia Capra France