Rebar prices in Germany have stabilised from the dip that occurred a month ago, but a notable uptick has not come about.
Base prices softened from mid-July into August, undercutting the mark of €400/tonne ($466/t), with quotes as low as €380/t heard from large rebar benders, and even lower than that heard from southern Germany.
Several buyers tell of enhanced purchasing activity during that period. They also note signals from mills to announce more solid prices, at least keeping the €400/t level, but ideally heading for €10-20/t more, according to one central German buyer.
But a clear word has not been heard from the mills, a manager of a relatively small northern German bender tells Kallanish, and says he can still place orders for €400/t.
In southern Germany, one commentator claims that €380/t is still possible, with equal prices from German and Italian mills, and attributable to the competition from both sides in the south. He also denies that the earlier buying spree was very big at all.
He concedes that the mills are dealing with higher transport costs, and have a point to ask for higher prices, but adds that “the market speaks a different language”.
Only one mill that is particularly impaired from the low water level of the Rhine River had asked for €10/t extra as compensation for additional logistics costs, he says.
All base prices need to add a size extra customarily of €265/t.
