Limited supplies prevent lower prices for German fittings
Rebar prices in Germany continue to decline, despite the decline in scrap metal prices observed since April, and the shortage of production in the country helps to maintain prices regardless of international factors, according to market participants Kallanish.
The shutdown of crude steel production at the Riva Hennigsdorf plant will last until the middle of the year, although the break is rumored to be extended until the end of the year. Callanish has heard from at least two buyers that it has been difficult to purchase fittings of some non-standard sizes in Riva Germany over the past 2-3 months. The Riva Group of companies has mostly left its French factories to serve the German market. "We've been getting offers from Bonnieres-sur-Seine lately," says a buyer from the Ruhr
As a result of Riva's almost complete withdrawal, the domestic market has shifted to other players. "Riva is currently resting, taking advantage of convenient German laws for short-term work," says the buyer. "Thus, Badische Stahlwerke and Feralpi Riesa are in an advantageous position: both companies can supply a full range of products, both can operate at full capacity."
This means that the remaining factories can also maintain high prices. "I don't understand why prices should decrease in this scenario," says the buyer. Thus, observers see that the supply of rebar has remained at the same level since the end of April - 420-430 euros per ton (465-476 dollars), which, plus an additional surcharge of 265 euros, will lead to a supply price of 685-695 euros per ton.
The manager from East Germany agrees with this and notes that limited-range imported goods can be purchased at a price of 630 euros per ton or cheaper. "But you need to take shipments of at least 5,000-7,000 tons," he notes.
Christian Kel Germany
kallanish.com