Offers from northwestern European rebar mills have seen a move upward, following a gentle buying spree that might not be quite over.
Towards the end of August, at least one German mill in a letter advised its customers to make bookings for September to replenish inventories before costs for energy, scrap, and transport surge further.
According to a Ruhr-based distributor, many buyers have heeded the call and made bookings, although not for big volumes. Given the uncertainty over surging energy costs, the tonnage offered was anyway limited, he believes.
“In any case, mills have secured their production, and the next round would be for October, November, at new prices,” he tells Kallanish.
According to him and other sources, the new base prices offered now by German mills are at €800-840/tonne ($810-850/t), up from a bottom line that undercut €750/t during summer.
“Those who order now will have to pay the new prices,” the Ruhr distributor says.
However, a buyer for a particularly big distributor sees the current spot price still at €750/t, and competitors are reluctant to make orders.
Although he does not confirm prices around €800/t, he himself believes in the stability of prices going forward.
“But others are not,” he says, which is why some remain reserved, betting on falling prices. This logic, however, might only apply to big players, who in the summer lull enjoyed low base prices of down to €700/t.
Christian Koehl Germany