German construction slows on rising rebar prices

Construction companies in Germany are facing falling orders, a suspension of ongoing activities, and planned project stoppages.

According to a poll published by construction association Bauindustrie, 30-40% of member companies report effective suspensions, and as much as 70% report delays in ongoing projects. The association attributes this to construction material shortages and price increases that have been aggravated by the Ukraine war.

Kallanish hears the same view from rebar benders. “Project customers are shying away from long-term planning. Many projects will be completed around September/October, and then there will be a drop, for lack of new projects,” one rebar bender manager says.

The same echoes from Austria, where one manager is sure that autumn will bring a decline in construction activities. “Many planned projects were cancelled, and some big projects have been frozen,” he says. He adds that the erratic increases in prices prevent normal financing in line with the country’s regulation for loans.

The Austrian level for rebar is actually still far below that in Germany, where base prices in April went up by a respectable €300/tonne in some cases, after the magic mark of €1,000/t ($1,072) was reached in March. Many offers and transactions will now occur at above a base price of €1,200/t.

Christian Koehl Germany