Germany’s rebar mills have lifted the fixed surcharge for wire mesh by €25/tonne ($27) with immediate effect, Kallanish hears from market participants.
The surcharge is the equivalent of the size extra (“Dimensions-Aufpreis/DA”) for straight rebar and comes on top of the fluctuating base price. Its German term is “Sorten-Aufpreis (SAP)”. Depending on the mill’s terminology, this may also be called a conversion extra or processing extra.
According to one bender, Riva was the first company to introduce the new surcharge in late October, with other mills quickly following suit. Effective 1 November, the revised extras raise charges for the most common sizes to €230-€245/t.
This is the first hike in the surcharge in many years, and it is not extended to also cover the size extra for straight rebar. “I believe it has to do with the extra energy costs for the welding that you have with wire mesh, but not for rebar,” one manager says in finding a reason for the selective hike.
The surcharges appear limited to Germany and have so far seen little uptake in Austria. One Austrian manager attributes this to differing construction standards and certifications, as the new lists cover only B500 grade rebar, while Austrian builders typically use B550.
