In France, prices for long products are mostly kept at a level close to the pre-holiday level, although there is a moderate decrease in individual contracts and types of products, according to Kallanish.
After the resumption of trading last week, the market remained virtually unchanged, and demand for raw materials remained low. Large processors, according to market participants, face financial difficulties and have difficulty agreeing to price increases.
In general, against the background of rising prices for flat and long-rolled products, which has been observed in recent months after the escalation of the conflict in the Middle East, the profitability of processing has recovered, and output volumes have mostly remained at the level of last year.
However, over the past year, the processing sector has been under pressure from rising costs. The industry's prospects are still being assessed with caution: the French economy remains weak and, according to the latest quarterly data, has only briefly avoided recession. The construction industry, especially the private housing segment, still looks weak, and new infrastructure projects supported by recovery funds after the COVID-19 pandemic are being completed this year.
One of the major buyers, who is also not too confident about the prospects, believes that the upcoming elections will slow down business activity.
"The elections will have a serious impact on our business, and this is happening at a time of great uncertainty," he said.
Prices for flat rolled products, including hot-rolled coils, rose to 820-840 euros per ton, or 957-980 dollars per ton, which corresponds to higher quotations throughout Europe. This is significantly higher than the level of 800 euros per ton recorded at the end of July, shortly before the August shutdown of the industry.
Consumption of long products remains limited as companies try to reduce risks. The base price for fittings for the domestic market is 290-300 euros per ton, excluding additional costs, and with allowances — about 410 euros per ton. This is slightly lower than the July level, as many buyers have switched to Spanish manufacturers offering more competitive prices.
At the same time, prices are expected to rise under the new contracts, and in the domestic market the cost may recover to 310-320 euros per ton with delivery. Meanwhile, despite several attempts to raise prices for rolled products in recent months, quotations for products of the first category remain stable at the level of 800-810 euros per ton. Prices for fittings also do not change compared to pre-holiday levels amid market uncertainty and limited volume of orders. According to sources, the cost of delivery is in the range of 680-710 euros per ton.