Price hikes for longs/tube confuse French market

2018-07-04 21:52:29

The French steel market remains uncertain in the face of either increasing prices or anticipated price increases for most long products. This is due to the general wave of increases happening in other European countries such as Italy and Spain, with these being mainly due to the imminent EU announcement on safeguard duties.

French rebar prices are stable month-on-month at €270-280/tonne ($314-326/t) base delivered but are expected to increase substantially and involve both domestic and imported material. The domestic price range is on average €530-540/t ex-works including size extras, sources suggest. Distribution sources who spoke to Kallanish are concerned that customers may refuse to pay a base price of €300/t delivered and that this price may be workable after the summer, but not now.

Merchant bar prices are stable m-o-m at €130-140/t base delivered, or €550/t including extras. However, prices for both imported and domestic material are expected to increase sharply. Increases for long products maybe in the range €20-40/t, depending on each product, sources suggest.

Meanwhile tube prices which have been equally stable for a while are also increasing in France as discounts are falling by 3 or 4 points. According to the new price lists implemented by some major Southern European producers in May each point of discount is equal to €10/t gross.