Rebar prices in Germany have kept softening in a market in which cut-and-benders are competing fiercely for construction jobs. Amid this tension, neither mills nor buyers can work profitably, let alone happily.
The base price is currently creeping down towards €350/tonne ($409), which plus the fixed size extra of €260 gives an effective rebar price of €615/t delivered. Benders suggested earlier that this would be the most they could pay to mills to break even in the climate of depressed rebar prices they can charge to building companies.
Buyers tell Kallanish they have not heard of €350/t, but have struck deals at slightly higher, so “that’s [lower prices] the direction we are going towards; so says my gut feeling”, a northern German buyer says.
A manager in eastern Germany confirms the trend. “I still paid a little more than €360 lately, so €350 could be the next stop,” he says. He adds the offered prices on a delivered basis from Poland provide too small a discount to be considered for purchases.
Offers come in every now and then, but orders need to be placed for large volumes of standardised sizes, he explains. “I have more influence on German deliveries and can split them up better into smaller lots, and re-decide on sizes I need,” he adds.
Looking at offers from overseas makes no sense at all, another source cautions, in view of the various trade hurdles, with the Carbon Border Adjustment Mechanism impact imminent. “People are becoming really reserved [with making overseas orders] because of CBAM; you just cannot tell what is coming towards you, meaning a mistake can cost you a lot of money in January,” he says. He expresses frustration with the multiple trade barriers importers need to contend with. “You really need a university degree to understand it,” he quips.
Christian Koehl Germany
