Weak demand for rebar continues in France

Prices decreased by around €20/ton ($22) on a monthly basis and are expected to continue to decrease due to weak demand.

The sentiment in the construction sector remains subdued due to a negative outlook for Q3 and the long holidays planned for August. Rebar orders are only realised back-to-back and visibility is decreasing due to the lack of financing for new construction projects.

If prices decrease, given the cost of scrap, energy and other raw materials, some factories in Europe will have to stop production or risk producing and selling at a loss.

In France, activity in the construction sector continues to be hampered by low demand for private residential buildings and high interest rates. No fiscal stimulus is planned by the authorities to revitalise the sector. Buyers' inventories continue to be reported at low levels.