French rebar buyers remain on fence

French rebar activity continues to be sluggish, with no market visibility. Prices are however stable, with sources indicating a slight, €10/tonne ($11) hike compared to mid-July.

The market is now on holiday, and very little is forecast to happen until the end of August. However, stocks at distributors and their clients are low, with distributors reporting empty order books. Sales are taking place from day to day, with no longer-term prospects. Customers and construction companies will adopt a wait-and-see attitude in September and will continue to buy only to cover immediate needs each day.

One seller says he has no orders for September and revenue in July was accumulated from day-to-day sales. Despite the difficulty of working without plans and visibility, and there being limited restocking, the month of July was considered “acceptable”, Kallanish notes.

Some orders for infrastructure projects improved producers’ sales in July but the remaining orders were for small volumes. Domestic rebar prices are hovering at €590-620/t delivered including size extras, depending on tonnage, sources suggest.

Natalia Capra France