German rebar producers have immediately raised the fixed surcharge on reinforcing mesh by €25 per tonne ($27), market participants told Kallanish.
The surcharge is similar to the dimensions surcharge (“Dimensions-Aufpreis”, DA) for straight rebar and is added to the base price, which can change. In Germany, it is called the “Sorten-Aufpreis” (SAP); depending on the mill’s terminology, it may also be referred to as a processing or handling surcharge.
According to one market participant involved in rebar bending, Riva was the first to introduce the new surcharge, at the end of October. Other mills soon followed. From 1 November, the revised surcharges bring the cost of the most common sizes to €230–245 per tonne.
The surcharge had not been increased for many years. The changes did not affect the dimensions surcharge for straight rebar. One executive explained that the selective increase was due to the additional electricity costs involved in welding mesh, which are not incurred in rebar production.
The surcharges appear to apply only in Germany: they are still rarely used in Austria. An Austrian executive attributed this to differences in construction standards and certification: the new price lists apply only to B500-grade rebar, whereas Austrian builders typically use B550.
By: Christian Köl, Germany