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| Steel |
Cautious sentiment, weak demand and regional competition dampen prospects for price hikes
French steel prices remained broadly stable in May, defying a notable drop in scrap values, according to industry sources cited by Kallanish. Persistent uncertainty across the value chain and mounting margin pressure are contributing to a restrained market outlook and rising financial strain among producers and distributors.
Market participants expect a slight price softening heading into the summer lull, with limited appetite for restocking. A major buyer noted no signs of a substantial rebound before the summer holidays due to subdued demand and aggressive downstream discounting, which continues to shape a highly competitive environment in both long and flat steel segments.
A southern France buyer highlighted a sluggish market with intense pricing competition, largely driven by low offers from Italian and Spanish producers, especially in regions where they maintain a limited footprint.
- Price Highlights:
- First category beams: €780/tonne ($877) delivered
- Domestic merchant bar: €245–250/t base delivered
- Effective merchant bar prices (with extras): €665–670/t delivered
- Domestic rebar: €640/t delivered on average
Despite flat pricing, beam producers across Europe report adequate order books, suggesting a relatively stable short-term outlook for that segment.
While price levels are holding, the market’s underlying fundamentals remain fragile, particularly as lower input costs fail to translate into stronger margins due to weak end-user demand.
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