An increasing number of benders in northwestern Europe are preparing for higher rebar prices going forward. These expectations vary within a base price range of €450-€480/tonne ($526-$562).
The upper end value was reportedly heard at the Wire trade fair by one producer, Kallanish hears from a manager of a German purchasing group. “They were pretty pronounced about it, and I was pretty baffled by the sheer degree of it,” he says.
Another manager of a larger distribution group is sceptical and finds that “€480 might be wishful thinking.” Both managers see the base price currently moving from €440 towards €450.
Others say that €450/t has been reached already and buyers should be prepared for paying more going forward. “You won’t get any [material] for €440 anymore,” says one buyer. “€450 to €480” is the word now.”
His view is echoed by others, including a manager of another large distributor, with the expectations of higher prices not limited to buyers of small volumes.
One factor that matters is the distance to the mills, which could account for €10-20 in the base prices, which include transport costs.
In May, one mill is reportedly taking a three-week production break at its steelwork for the installation of new transformers. The interruption will not affect market supply, because inventories at the mill have already been filled for that period.
The revamp and the stoppage have been communicated only informally, in conversation, according to one observer. “Mills do not like to announce such things too openly because of concerns that some customers will get nervous and go elsewhere with their orders,” he says.
