French steel prices have shown an upward trend since January, with European producers implementing moderate increases of €5-15 per tonne. This move comes amid renewed protectionist policies from the US and anticipation of more stringent safeguard measures from the European Commission. Price increases on products such as welded tubes, sheets, and beams have been accepted, while other proposed increases remain uncertain due to buyers' reluctance to transfer costs downstream.
Multiple production and distribution sources indicate that downstream demand is not improving. The forecast for the upcoming months appears bleak, particularly in sectors like construction and automotive, which are either in recession or facing significant downturns. In France, beams have experienced an increase of approximately €15 per tonne due to material scarcity, with current pricing for the first category of beams positioned between €770-790 per tonne delivered. Domestic merchant bar prices in France are flat month-on-month, maintaining a range of €240-250 per tonne base delivered, with effective levels including size extras set between €660-670 per tonne delivered. Producers are indicating potential increases for new contracts.
The current average price for rebar stands at €610 per tonne delivered. The product showing the highest increase is sheet, with prices elevated due to rising values of hot-rolled coil, now reaching approximately €600-610 per tonne delivered in France. The current pricing for hot-rolled black sheet is between €670-680 per tonne inclusive of delivery. Despite the increases, the market is perceived as relatively stagnant, characterized by limited-volume sales.
ArcelorMittal is reducing its investments in France and the rest of Europe due to the steel sector’s slump. The recession is hitting the French construction industry hard, especially in the private residential sector, which has been undermined by reduced new construction and the non-residential sector. The French construction federation, Fédération Française du Bâtiment (FFB), reports that the industry experienced a 6.6% decrease in volume last year, with the number of building site openings for new construction seeing a significant decline of 14.2%, following a substantial decrease of 24.9% in 2023, resulting in a historic low of 253,000 units. Such levels have not been seen since 1954.
