French steel prices remain largely unchanged, even in the face of significant declines in scrap values observed in May. Uncertainty persists across the value chain and pressure on margins is leading to financial difficulties, Kallanish notes.
Market participants anticipate a slight decline in prices prior to the summer season. A large buyer says he is not expecting substantial restocking before the summer holiday due to slow demand. Aggressive selling at low prices is being observed downstream, resulting in a competitive environment for both long and flat steel markets.
A buyer in the southern region indicates a sluggish market characterised by competitive pricing. This is attributed to lower offers from Italian and Spanish producers who have a limited presence in the northern French market.
Domestic sections and merchant bar prices remain mostly flat this month. First category beams are at €780/tonne ($877) delivered, while domestic merchant bar prices in France are observed at €245-250/t base delivered, with effective prices, inclusive of size extras, at €665-670/t delivered. Beam producers in both northern and southern Europe are said to have enough orders.
The domestic rebar market is also flat, with values hovering at €640/t delivered on average, sources suggest.
Natalia Capra France
