The size-extra charges that form one component of rebar pricing in Germany and Austria have been increased by some mills, a rare occurrence, Kallanish hears from the market.
Rebar prices are traditionally composed of a base price which is subject to market fluctuations, and a “size extra” for the range of thicknesses, which remains fixed. The last adjustment of these size extras occurred in 2015. Since then, 12mm rebar, for example, has been charged an extra €265/t ($306). That value has now been lifted by €15 to €280. Other size extras now range between €255 for 16, 20 and 25mm, and €365 for 8mm.
The new prices have been heard from two mills. In a bulletin to customers, a German distributor names Baustahlgewebe/Badische Stahlwerke as a publisher of a new list valid from 1 August. One mill that has followed suit is Austria’s Marienhütte, according to the distributor. “For buyers, it will now become more difficult making comparisons on the basis of the new lists, as long as the other mills stay with the previous prices,” the bulletin reads.
The German distributor’s information is confirmed by an Austrian buyer, who notes that “the last list has been valid for unusually long; earlier on, size extras used to be adjusted much more often.” He believes that “mills had forgotten about that tool,” but have now rediscovered and redefined the charges, after hurting increasingly from profitability pressure.
The rebar base price in Germany has recently reached a floor at €350/t. With the previous size extra, bar of 12mm would now be at €615/t; under the new size extra, it would be at €630/t.
Kallanish has contacted all mills in Germany and Austria for comments on the move, but had not received replies before Tuesday deadline.
Christian Koehl Germany
