FRANCE October 28 2015 9:25 AM
PARIS (Scrap Register): In France, although underlying demand for hot rolled coil is reasonable, buyers are postponing orders as they watch basis values tumble, said MEPS International. Import offers have fallen significantly, making it extremely difficult for local mills to hold prices steady.
According to MEPS, it is very difficult for cold rolled coil producers to resist the pressure to compete with cheap imports, especially when there are so few deals to be made.
Meanwhile, coated coil spot values have dropped. Demand for this product from the auto industry remains relatively healthy.
French selling values for drawing rod and recoil have undergone downward corrections. Market conditions remain challenging.
Pessimism persists among participants in the rebar market. There is a feeling, although basis values have decreased again, in October, they have not bottomed out, as yet.
No recovery is expected in activity before the second quarter of next year, at the earliest.