While rebar sales in Germany continue to deteriorate along with the nation’s construction industry, activity is faring relatively better in Poland, which has become the more attractive market for some German sellers.
Rebar mills in eastern Germany, in particular, largely Italian-owned, are seeing better business in Poland than in their home market. “You get better prices there. I spoke to the management of Feralpi Stahl; they said it is the first time they are selling eastward to Poland,” one buyer tells Kallanish. Feralpi group makes no secret of that development in its official statements. While revenue generated in Italy and Germany dropped in 2023, “the trade performance of the Polish market improved significantly,” the group writes in its latest annual report.
On the German market, base prices from domestic mills over the summer have trended stably at below €360/tonne ($403), which plus the fixed size extra of €265 comes to a delivered price of €625/t – or less. Although some sources have observed recent increases in offer prices, of up to €650/t delivered, this has not been widely substantiated in transactions.
However, while the stronger Polish construction economy is bringing some benefit to eastern German mills, it is, on the whole, having a detrimental impact on the rebar business in Germany. This is because it is encouraging Polish immigrant workers in Germany to return home.
“For Polish workers, the road to Germany is barely paying off, with wages minimally higher, so they would rather look for work at home,” one manager at a German rebar bender says. A manager at Atterer in southern Germany concurs, and describes the issue in a letter to customers. “We keep losing workers for financial and family reasons, although they value us as an employer. And it is difficult to attract new qualified workers,” Atterer writes, describing the dilemma.
The company points out that the Polish zloty has jumped by 10% against the euro since last year. For Polish workers in Germany, this means their wages have 10% less purchasing power when they travel home. This, plus the high costs of living and fuel, make working in Germany unattractive for them.
