German rebar producers have raised their offers twice in two weeks, by a total of €70–90 per tonne. The base price now stands at around €500 per tonne, and with an average size surcharge of €265, rebar can be offered delivered at €765 per tonne ($561).
Just a month ago, base prices were €410–430 per tonne. “The past two weeks have been quite eventful,” a manager at a mill in central Germany told Kallanish.
From November 1, producers also increased the surcharge for welded mesh by €25 per tonne for the first time in 15 years. In October, a representative of one mill told Kallanish that prices in Germany were rising steadily because costs had risen significantly for all producers.
Buyers say mills warned them of another increase last week, but the scale of the rise still came as a surprise. According to a procurement manager at a large distribution group, producers’ main argument is energy costs, particularly for companies that buy electricity on the spot market.
It is unclear how Italian mills will price material for German buyers. In the first half of October, their base offers for Germany — around €420 per tonne — were significantly below domestic prices of €480 per tonne. Italian producers withdrew from the market this week, so the outlook remains uncertain.
“I contacted them, but they need to assess the situation themselves before making their next move,” the buyer said. Another manager noted: “Now the Italians are following German prices. Actually, the Germans are following the Italians — you can look at it either way.”
