Steel prices in France have generally remained stable after an increase of 10-15 euros per ton (11-17 dollars per ton) in March. Profitability remains a serious problem for manufacturers of flat and long products, service centers and end users, notes[b]Kallanish[/b]
The forecast for May seems unfavorable, according to numerous sources, a decrease in prices for long positions is expected, as well as a potential decrease in the value of derivatives over the next ten days.
" Taking into account seasonal factors, demand in May is significantly decreasing. There is considerable uncertainty in the market. Despite the fact that manufacturers insist on a possible price increase, especially for flat rolled products, I do not see any increase in the coming weeks", - a source in the steel procurement group comments. Another source predicts a decrease in prices in May for all metal products due to seasonality and an expected drop in prices for scrap metal in the domestic market.
Another buyer points to low margins throughout the value chain. There was weak demand for long positions in the first quarter, and only minor restocking occurred in January. Differences were noted depending on geographical regions and sectors. The western regions of France appear to be showing slightly better performance compared to the east.
The rebar distributor in Yuzhno noted a period of sluggish activity in January and February, followed by a slight improvement in March and early April. Manufacturers from Spain and Italy are entering the French market with competitive prices for fittings, which has an impact on sales of domestic products.
Prices for rebar for the domestic market and long products remain unchanged. Bars of the first category are sold at a price of 780 euros per ton, while domestic prices for bars in France are 250-260 euros per ton, and current prices, including additional sizes, are 670-690 euros per ton. The domestic rebar market also remains at the same level. According to sources, the average shipping cost ranges from 630-645 euros per ton.
Natalia Capra, France
kallanish.com
