The fall of rebar prices from German mills seen in July has been reversed with current and upcoming orders now again facing base prices above €400/tonne ($462/t).
That was the lower limit seen by most, after a short downturn from the relative stability of around €430/t earlier on.
One buyer of large amounts tells Kallanish of opportunities at €390/t “and even €380/t”.
Most customary buyers would have been happy enough with €400/t, though, and “we have refilled quite a bit, so that I would not know where current offers are,” a Hanover-based manager says.
Mills appear to have collected a good amount of offers, “and in view of this have announced higher prices,” a manager from the Frankfurt area says.
While others confirm the move, the degree of increase remains unconfirmed.
According to the large-volume buyer, mills want to return to €420-430/t, but for the moment are happy to stabilise the €400/t.
Given that books were being well filled in July, fresh transactions are currently rare. “Those who had speculated on even lower prices in July will now have to pay more,” the Lower Saxony manager says, without giving further details.
Market players expressed wide ranging explanations on how the temporary July dip came about. The fall in €25/t scrap prices had been quickly factored in, one source notes. While another notes the ongoing geopolitical challenges, with a brief dip in oil and energy prices on a potential peace deal in the Gulf.
“There was an Italian invasion of cheap offers in southern Germany for a brief period,” the Hanove manager says. “We up north did not get those offers, but still, the domestic mills had to react, and that’s why the waves were felt all over the county.”
Author: Christian Koehl Germany
