The cost of contracts for the supply of French fittings increases monthly by 20-30 euros per ton ($23.28-$34.92 per ton) due to the escalation of the US-Iranian conflict, Kallanish notes.
European producers have canceled offers due to rising production costs associated with higher gas and electricity prices, as well as transportation costs for oil. Scrap metal prices in Western Europe have also increased this month (see separate article).
Distribution sources report that the month started very slowly, with the usual weak order intake, but demand jumped after the conflict escalated last week.
One distributor says his sales have doubled compared to a typical week, and points to some signs of "panic buying." However, another major buyer is showing a more cautious view of consumption. "The war is not in Europe. Producers do not pay for electricity on a monthly basis like households, and consumption in France has not changed, especially in construction, where activity remains low," he says. He admits, however, that purchases have increased, but doubts that the recent price increases and increased order volume can be sustained.
Prices for French rebar have increased from an average of 610 euros per ton delivered last month to 640-650 euros per ton delivered in recent days, sources say. One distributor in the south of France says he has managed to earn up to 660 euros per tonne of delivered products, depending on transportation costs, as demand was particularly high last week and this week.
Author: Natalia Kapra France
Kallanish.com
