Germany’s rebar mills have given their prices another push in April, which appears to have been accepted in the market, Kallanish notes.
Attempts to bring up base prices over recent months received limited success, not reaching the €400/tonne ($455) target until March. That mark has now been passed, owing probably to the prolonged shutdown of the liquid phase at Riva Hennigsdorf.
The mill near Berlin stopped steel production at the end of December and introduced short working hours for its staff. Production was not restarted at the end of March as originally planned, with the suspension continuing until further notice.
Buyers currently see the base price at €420/t. Adding the fixed size extra of €265, the delivered price would be at €685/t.
“With Henningsdorf out, two of the other producers were able to assert higher prices, and I believe prices are trending up further,” one manager tells Kallanish. Paradoxically, the trend could also be stopped by Riva’s German subsidiary as soon as it decides to rejoin the improved market and restart production, the manager adds.
