The gap between rebar prices north and south of the Alps has widened recently, with German mills managing to implement price increases where Italian producers had been unsuccessful.
For northern and central Germany, buyers report that base prices have passed the €400/tonne ($460/t) mark, a level which mills previously tried to reach in vain. Due to the prolonged closure of the steelworks at Riva Hennigsdiorf, prices of around €420/t can be achieved.
Meanwhile in Italy, minor increases were attempted earlier in April, but withdrawn in the pre-Easter week, to base prices of around €320/t (see Kallanish 21 April).
In Austria, which is exposed to both markets, the domestic mill recently lifted offers by €20/t, but remains under the €400/t mark, now at around €390/t.
“We cannot hand down that increase, that market won’t accept it” one buyer tells Kallanish.
Offers from Italian mills to Austria in early April also rose by €20/t to €385/t base now, he adds.
The impression is confirmed from southern Germany, where similar prices are offered from Italy, one Bavarian buyer tells Kallanish.
From German mills, base prices offered south are lower than further north.
“Some are offering at €400/t, others are coming close to that, but we have not heard €420/t here,” the buyer says, attributing the lower southern level to the Italian influence.
Meanwhile, another manager notes that wire mesh prices are showing a stronger upward momentum than bar prices, following price increases for input materials.
Recent base prices for wire mesh were at €500/t, which is only €80/t above the higher end of rebar prices. The manager believes they will soon reach the customary premium of €100/t, and possibly beyond that.
Christian Koehl Germany
