The consumption of rolled products in France remains stable compared to last month, and many buyers report stable volumes, although the margin is too low to make a profit, according to Callanish.
Uncertainty and political instability continue to weigh on sentiment as investments are delayed and trading volumes remain relatively low.
A major buyer says that factories continue to produce, but sales are below production levels, which creates a delicate balance.
Although the transaction prices for long positions have hardly changed compared to the levels of early October, sources note that competition between European mills is strong. This, combined with weak sales, high production volumes, and growing manufacturers' inventories, could lead to lower prices, especially for some products such as candy bars, where there is fierce foreign competition.
The new EU protective offer and CBAM, which come into force in January, should not affect the prices of long positions, according to market participants, since imports from abroad are minimal. Prices for pipes and rolled products, on the contrary, are rising after recent price increases by rolled products manufacturers in Europe, including ArcelorMittal.
The presence of Spanish and Italian manufacturers in the south of France means that prices for long-range rental are slightly lower than in the north.
A seller in the Lyon area reports that rebar prices in Italy and Spain are about 30 euros per ton (US$35 per ton) lower than in the domestic market.
"Steel processors and distributors are unable to make money because there is practically no margin. Companies are chasing volumes and fighting with each other, and negotiations with manufacturers are difficult," one of the market sources comments.
Manufacturers of long and flat rolled products are trying to achieve higher prices, but buyers are still skeptical due to low consumption. One manufacturer notes that stocks are slowly being depleted, leading to an accumulation of stocks.
The cost of rebar remains unchanged and averages about 600-620 euros per ton, while sales are limited to relatively small volumes, as reserves are slowly depleted.
Prices for corrugated board are also stable and amount to 750 euros per ton delivered on average. A recent attempt to raise prices to 770-780 euros per ton in September was unsuccessful.
The prices of bars for retail trade reflect the competition of Spanish manufacturers and remain unchanged at 220-240 euros per ton.
Given the slow market growth and competition among European manufacturers, prices are forecast to be weak in the coming weeks.
Natalia
