Prices for long positions in France are rising despite weak demand
Steel prices in France are rising by an average of 5-10 euros per ton ($6-12 per ton) as long products factories try to raise prices due to rising production costs, rising scrap prices and the impact of CBAM on imports, Kallanish notes.
According to market sources, factories have announced price increases of up to 20 euros per ton, but buyers usually agree to an increase of no more than 10 euros per ton, depending on the volume of purchases in December.
However, consumption remains low, and several buyers have informed Kallanish that price increases are becoming increasingly difficult to overcome. Sources agree that CBAM has only a limited impact on the long pipe market, where competition between European manufacturers remains intense. Although some restocking was reported in December, demand was weak in January.
On the contrary, prices for sheets and pipes are gradually rising, which is facilitated by stricter roll protection measures. However, the price growth for long products remains uncertain.
One customer notes that factories that are tough on price increases are losing orders. Another major buyer adds that he bought about three times less rebar in France than usual, instead purchasing the material from other cheaper European suppliers.
The increase in prices for materials in France is insignificant, as competition with other European manufacturers leads to cheaper materials available to French buyers.
Long products prices in France are officially increasing by 20 euros per ton, but not all European producers are raising prices, while producers from Spain have increased their selling prices in France by only 10 euros per ton.
Prices for grades of the first category in France increased slightly from 730 euros per ton delivered last month, to an average of 735-740 euros per ton this month.
Domestic trade prices for bars in January contracts increase by about 10-15 euros per ton to 220-230 euros per ton with basic delivery, excluding additional sizes - 420 euros per ton. Rebar prices also increased by 10 euros per ton and averaged around 600-610 euros per ton with delivery.
Meanwhile, France's construction sector continues to perform poorly. Market sources report cautious orders from construction companies and do not expect any improvements until the second half of the year.
One source notes that infrastructure projects funded under the EU's post-pandemic recovery program are expected to expire in the second half of 2026 and eventually altogether.