German fittings remain soft
Benchmark rebar prices in Germany and Austria are still unlikely to rise to the 400 euro per ton ($469) mark, which they exceeded during the period up to June.
"Actually, I doubt that too many people have bought it. for more than 400 euros," says one customer from Central Germany. "Mills planned to receive 420 euros, but did not receive them. "Current base prices are around 380 euros per tonne," he says, "but[rebar prices]remain under pressure."
Further south, in Bavaria and Austria, people are seeing prices even lower, offering 360 euros per ton as a benchmark for recent deals. Prices for rebar manufacturers must be even lower in order to break even in the competition for construction contracts. "350 euros would be quite realistic," says Kallanish, one of the rebar cutting and bending managers.
Italy's influence appears to be limited, as Italian supplies for southern Germany are only 10 euros per ton below local prices, he says. This is quite remarkable, considering that domestic base prices in Italy are about 100 euros per ton lower. "Italians sell to Germany only if necessary; in other countries they get better prices than in Germany," he said.
He also mentions the recent desire of German factories to raise prices by 20-30 euros, but believes that price stabilization is the best they can hope for, and price increases are unlikely before the summer.
However, other buyers have not confirmed attempts to raise prices. However, the Austrian buyer confirms the Italian prices. "The Italians charge us 100 euros more than at home, and it was difficult for me to negotiate a 20-euro discount as part of a recent deal," he says.
Christian Kel Germany
Kallanish.com