Rebar price increases in Germany and Austria are becoming increasingly recognized
Recent statements by German rebar manufacturers about price increases to 400 euros per ton ($461 per ton) seem to have been largely accepted by the market, Kallanish notes.
Factories are reportedly reducing their supply volumes. In Austria, the difference in prices for Alpine goods has almost decreased after the latest announcement by Italian factories.
According to German sources, the price increase is observed at all domestic plants and amounts to about 50 euros per ton, although in some cases more, depending on the previous level. If you add additional dimensions in the amount of 265 euros per ton, the delivery price will be 665 euros per ton, "and you will have to pay for it," the buyer from the Ruhr is sure.
Sources in Austria agree with this. The sudden price increase observed in Germany at the end of last week is not being reported from Austria, where an increase of more than 30 euros per ton was already announced shortly after the US-Israeli attack on Iran.
Austrian sources also report that Italian factories have announced price increases of 30 euros per ton, while prices in the Italian domestic market are expected to rise by as much as 70 euros per ton.
In Austria, the latest offers are priced at 660 euros per ton with delivery, so this will not greatly affect the prices of German factories. Observers note that transportation costs have increased so much recently that they negate the price advantage of Italian factories.
The cost factor is a strong factor, as fuel and other energy prices are expected to rise due to the crisis in the Persian Gulf. Buyers express sympathy for the price increase, but also note that demand in the market has not risen from a multi-year low.
One manager believes that the current offers relate mainly to existing stocks in factories, "and as soon as they are sold out, prices may change." He adds that the fear of further price increases is the only reason that drives people to buy.
However, another manager says that such a step can be a good reason to stimulate activity. "As a rule, customers buy when they believe that prices will rise," he says. He notes that factories are currently engaged in hard-to-reach trade, offering only small volumes for sale in order to preserve opportunities for further expansion.
Author: Christian Kel Germany
Kallanish.com