German mills are having a tough time achieving the intended rebar price hikes they announced before the Christmas break.
After order books were filled at base prices not exceeding €360/tonne ($375/t), in addition to size extras bringing prices to €625/t delivered, mills had targeted €400/t for new orders.
“That was pretty ambitious,” one buyer finds. “Currently, €380/t is the word, meaning mills achieve a plus of €15-20/t.”
This would be fairly in line with the price hike of €25/t announced recently by ArcelorMittal for long products in Europe (see Kallanish 14 January). While the group owns no rebar plants in Germany, the increase has been heard by German buyers.
“You do hear of those hike attempt by €20-25/t from all sides,” a northern German manager confirms. He, too, gives €380/t as a realistic base price for transactions.
Market activity is low, all players say. Some note the impact of the three-month stoppage of the liquid phase at Riva’s Hennigsdorf works, with staff on short working hours during the period.
“I guess they have sufficient billet in stock to roll for incoming orders,” one manager says. He suggests the stoppage might have the intention to help reduce oversupply. “In any case, the stoppage helps to stabilise the price,” he tells Kallanish.
Another stockholder informs customers that supplies from Riva would in any case be guaranteed from its French mills, but also recommends that orders be placed in time, in anticipation of longer lead times.
Christian Koehl Germany