French steel prices have shown an upward trend since January with European producers currently implementing moderate increases of €5-15/tonne ($5.2-15.7/t), Kallanish notes.
The move comes amid US President Donald Trump’s renewed protectionist policies and the anticipation of a response from the European Commission regarding more stringent safeguard measures.
Price increases on products such as welded tubes, sheets, and beams have been accepted, while other proposed increases remain uncertain, with buyers often reluctant to accept them as they are unable to transfer them downstream.
Multiple production and distribution sources indicate that downstream demand is not showing signs of improvement. The forecast for the upcoming months appears bleak, particularly as sectors such as construction and automotive are either in recession or facing a significant downturn.
In France, beams have experienced an increase of approximately €15/t, attributed to the scarcity of material. The current pricing for the first category of beams is positioned between €770-790/t delivered.
Domestic merchant bar prices in France are flat month-on-month, maintaining a range of €240-250/t base delivered. The prevailing effective levels, including size extras, are set between €660-670/t delivered. Producers are indicating potential increases for new contracts. The current average price for rebar stands at €610/t delivered, sources suggest.
The product showing the highest increase is sheet, with prices elevated due to rising values of hot rolled coil, now reaching approximately €600-610/t delivered in France. The current pricing for hot rolled black sheet is between €670-680/t inclusive of delivery. Despite the increases, the market is perceived as relatively stagnant, characterised by limited-volume sales.
While ArcelorMittal is reduces its investments in France and the rest of Europe due to the steel sector’s slump, recession is hitting the French construction industry. The crisis worsened in 2024, especially in the private residential sector, which was undermined by reduced new construction and the non-residential sector, French construction federation Fédération Française du Bâtiment (FFB) says in a report.
“After an erosion of activity in 2023 (-0.9%), the construction sector entered full recession in 2024,” FFB comments.
The industry, encompassing all segments, experienced a 6.6% decrease in volume last year. The number of building site openings for new construction saw a significant decline of 14.2%, following a substantial decrease of 24.9% in 2023, resulting in a historic low of 253,000 units.
FFB notes such levels have not been seen since 1954.
Natalia Capra France
