FRANCE April 28 2015 5:38 PM
PARIS (Scrap Register): French hot rolled coil steel prices decreased month-on-month so far in April. Cheap imported material from Russia and China continues to create downward pressure on local selling figures, according to MEPS International.
In the French plate market, prices have gone down as demand remains flat and there is strong competition between the various suppliers. Delivery lead times have shrunk.
The domestic mills have failed to hold on to the previous month’s cold rolled coil figures. Very competitively priced Chinese material is still available, MEPS added.
Demand from the French vehicle industry has improved since last year, with car manufacturers increasing their output slightly. Nevertheless, steel contracts are fixed until June or even September/December. In the general market, coated steel consumption remains tepid. During recent settlements, producers have been forced to concede discounts.
Selling values for drawing rod are lower than those displayed in our March report. For the mesh quality, suppliers have been unable to resist downward price pressure during recent settlements.
Rebar basis values went down slightly, in late March/early April, but have now recovered to their previous level. Producers are asking for a small advance on the back of slightly higher scrap prices in April. A small rise, for merchant bar, was negotiated last month but was then withdrawn as suppliers, other than Beltrame, did not support the initiative.