An increasing number of bending companies in Northwest Europe are preparing for higher rebar prices in the future. These expectations vary in the base price range from 450 to 480 euros per ton ($526-$562).
It is reported that one manufacturer heard about the upper limit of the price of wire at the exhibition, and Kallanish - from the manager of the German purchasing group. "They were very categorical about it, and I was completely baffled by their scale," he says.
Another manager of a large distribution group is skeptical and believes that "480 euros can be wishful thinking." Both managers believe that the base price currently ranges from 440 euros to 450 euros.
Others say that the price of 450 euros per ton has already been reached, and buyers should be prepared to pay more in the future. "You won't get anything[material]for 440 euros anymore," says one customer. "Now they say from 450 to 480 euros".
His opinion is shared by others, including the manager of another major distributor, and expectations of higher prices are not limited to small volume buyers.
One important factor is the distance to the factories, which can be 10-20 euros in base prices, including transportation costs.
It is reported that in May, a three-week production break was announced at one of the metallurgical plants to install new transformers. The interruption will not affect the supply on the market, as the stocks at the plant have already been filled for this period.
According to one of the observers, the update and the shutdown were announced only informally, in a conversation. "Factories don't like to announce such things too openly for fear that some customers will get nervous and take their orders elsewhere," he says.
Author: Christian Kel
Kallanish.com
