The publication last week of the price list for new-sized fittings in Northwestern Europe is a signal that base prices will also be increased.
The announcement of the new sizes "certainly shocked all of us," says one Austrian buyer. Despite the fact that a new version of the previous list of additional sizes, released in 2015, should have been published long ago, many were surprised that it was published only now.
The new list has so far been received from only two plants - Badische Stahlwerke and Marienhütte. And, as one manager from East Germany notes, not all buyers know about the development yet, simply because "we don't buy anything from them."
It is unlikely that both plants will consider accepting offers at the old prices. "Additional dimensions will come into force on August 4," the Austrian buyer said.
Kallanish contacted other factories in the region to inform them of their plans to follow suit, but they did not make any announcements before the deadline on Friday. Almost all other rebar production plants in Germany, Switzerland and France are owned by Italian companies that have now gone on summer holidays and have left the market for several weeks.
It seems that the times are favorable for Italian factory owners. "Italians can relax and take their time making decisions," says one columnist, although he has little doubt that they will follow his example.
He notes that the base prices have also been increased due to the increase in size. The offers he received as an effective delivery price were about 30 euros per ton ($35) higher than in July. The mark-up for rebar with a standard thickness of 12 mm in the new list increased by 15 euros per ton, so the proposals suggest an increase in the base price by the same amount.
In July, benchmark rebar prices dropped to about 350 euros per ton ($408) in Germany and Austria from domestic plants and are likely to be lifted in August. So far, activity is too low to judge the success of price increases.
Christian Kel Germany
Kallanish.com
