Prices for long positions in France continue to rise
Prices for long-position deals in France have increased since the beginning of March, as factories increased their positions after the escalation of the US-Iranian conflict, Kallanish notes.
After the initial pause, when buyers took a wait-and-see attitude, the number of orders increased shortly after the conflict, and the price increase was at least partially accepted.
Buyers and distributors report an average price increase of 20-30 euros per ton ($23.02-$34.53 per ton) compared to the pre-conflict level. Activity across the entire value chain has improved, although without signs of panic buying. The apparent demand has recovered slightly as buyers maintain volumes and expect further increases.
A major buyer and distributor in both northern and southern France, as well as a major European steel producer, expect further price increases, possibly in April, depending on how the conflict develops.
However, one source notes that real demand has not improved, and warns that excessive price increases may stop activity.
Demand increased sharply in the first days after the outbreak of the war, but it seems to be declining again this week.
Across the value chain, logistics costs are rising due to higher fuel prices, while energy costs and a slight increase in scrap recycling in March are also contributing to higher prices.
Scrap metal dealers expect material prices to rise again in April as suppliers in France, Belgium and Germany face the same price pressures, although it is too early to confirm anything yet. One of the sources adds that the recent surge in apparent demand increases the needs of enterprises for scrap metal, which may lead to higher prices for raw materials.
For the first time, European manufacturers seem to be presenting a united front against price increases. Spanish long products manufacturers operating in France, along with Italian rebar suppliers present in the south of the country, are also raising prices. Currently, there are no offers for imports at lower prices from any country. ArcelorMittal is also significantly increasing the production of rebar and other long products.
.Prices for the first category cross-section are currently approaching 780 euros per ton, and European suppliers, including Spanish factories, plan to supply France with about 800 euros per ton. The cost of rebar increases to about 640-650 euros per ton as the number of orders increases throughout the value chain. Prices for bars for retail trade are also rising - from 240-250 euros per ton last month to 260-270 euros per ton with delivery, while other European