French Long Product Steel Prices Continue Positive Trend -MEPS
Saturday, 25 February 2012 | 00:00
French long product prices recorded further gains in February according to figures published by MEPS International Ltd. Wire rod transaction values have firmed approximately 4 percent since January. Customers have agreed small price advances. Extended output cuts over the Christmas holidays, together with higher scrap costs last month, helped to boost selling figures.
French suppliers are steadily securing price hikes for the sales of medium sections on the back of a rise in mill input expenditure. A certain amount of restocking activity at both distributors and end users has also facilitated a boost in steel transaction values.
Rebar price hikes have been accepted by the market. French basis figures rose by over 6 percent in February, month on month, continuing the positive tendency. Merchant bar transaction values maintained an upward trend. French mills are reporting satisfactory order books.
The recent softening in scrap prices is likely to be only temporary as steelmakers increase production in line with growing sales volumes. Nevertheless, lower raw material costs could result in many French customers resisting further significant hikes in steel selling figures in the short term.
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