Rebar price growth in Germany remains limited
Despite the efforts of German rebar factories to raise prices, the achievable cost of supplies is not much more than 600 euros per ton (702 US dollars), and there is unlikely to be a new jump this year.
In previous years, mid-December sometimes led to a spike in supply prices after businesses filled their balance sheets sufficiently in January and then demanded higher prices for late sales. This year, this effect looks weaker. In November, enterprises already attempted to raise prices, but with little success. "They tried to raise the price by 40 euros, but they only got 20 euros," the buyer tells Kallanish.
The proposed base price will now be 340 euros per ton, plus a 265 euro surcharge to the standard size, resulting in a shipping price of 605 euros per ton.
Although the latest data from the German construction association, Hauptverband der Deutschen Bauindustrie, points to a rising price trend that began in the fall, it seems that this is happening more in the segment of large buildings and infrastructure. This is a platform for large companies engaged in sharp and flexible fittings, which are characterized by the rule that projects are implemented in conditions of fierce competition at low prices, sometimes below the cost of production of fittings.
According to the manager, this rule was already in effect in the old days, when activity in the construction sector was more favorable. The big players "compete at dumping prices to keep their staff busy," he says. He blames not so much construction companies as magicians, naming one group especially infamous in this game.
"Factories are absolutely right to try to raise prices against the background of high costs for electricity and other goods, but they will not be able to succeed while manufacturers absorb each other," he concludes.
Author: Christian Kel Germany
Kallanish.com