German rebar factories saw prices decline in June from a peak of 450 euros per ton ($514), which was reached in May.
Market participants agree that prices are now below this mark, but also note that the drop is not necessarily alarming.
"It's not unusual for prices to drop slightly a few weeks before the summer holidays," says Callanishou, a manager at a firm from Brandenburg and Bender. He and his source in northern Germany consider acceptable offers at a price of 440 euros per ton, which, taking into account additional surcharges of the standard size of 265 euros per ton, amounts to 705 euros per ton with delivery.
Some buyers of large distribution networks in western and southern Germany are offering prices in the range of 430-435 euros per ton, but they are confident that factories are ready to concede a lower price when concluding deals for large volumes.
One of the managers from the Ruhr sees no reason to fear a recession. Ha also attributes this decline to lower activity in the summer, when at least two factories will start taking breaks next week. He adds that he also heard about low offers from Polish factories, which put some pressure on prices in Germany.
The manager from Brandenburg, which is located on the border with Poland, denies that Polish factories play a big role in pricing in Germany, and believes that their offers are not necessarily much lower.
A source from Northern Germany says the same thing about some of the Czech suppliers he buys from from time to time, "mainly to diversify his suppliers, not because they are much cheaper."
Author: Christian Kel
Kallanish.com
