The shortage of rebar and other construction material in the German market has led to official warnings from companies to their customers.
“We need to inform you that we are facing a shortage of materials never seen before, with consequences for us and you as our customers,” a large stockholding group writes in a circular. Inquiries from customers often go unanswered by mills, and offers for new volumes sometimes carry the disclaimer that mills cannot guarantee deliveries at all, the stockholder adds.
Consequently, it informs construction companies that it will make offers only on the condition that its own supply is warranted, and for the price valid at that time.
Various sources tell Kallanish that lead times from mills are at two months or more, compared with a maximum of one week in normal times. Downstream, lead times from benders to construction firms are now at four weeks, according to a manager of another stockholder. “But the supply upstream, from mill to bender, takes twice that long. Hence, the looming supply gap is certain,” he says.
Christian Koehl Germany
