German rebar prices have continued to defy the downturn in scrap prices seen since April, with the country’s production shortage helping support values regardless of international factors, market participants tell Kallanish.
The stoppage of crude steel production at Riva Hennigsdorf will continue until mid-year, while rumour has it that the break will be extended until year-end. Certain rebar dimensions beyond the ordinary have been hard to obtain for the past 2-3 months from Riva Germany, Kallanish hears from at least two buyers. Riva group has largely left its French plants to serve the German market. “We get our offers from Bonnières sur Seine these days,” a Ruhr-based buyer says.
Riva’s quasi-withdrawal has left the domestic market to the other players. “Riva is now taking a rest, cushioned by the comfortable German laws for short time working,” the buyer says. “So this gives Badische Stahlwerke and Feralpi Riesa a comfortable position: both can supply the full range, both can operate at full capacity.”
This means the remaining mills can also keep prices elevated. “I cannot see why prices should soften under this scenario,” the buyer says. Observers therefore see rebar offers very much at where they have been since late April, €420-430/tonne ($465-476), which plus the size extra of €265 would result in a delivered price of €685-695/t.
An eastern German manager concurs and notes that imports of a limited choice of size range can be had for €630/t or less delivered. “But you need to take lots of at least 5,000-7,000 tonnes,” he notes.
Christian Koehl Germany
