German Rebar Rebound Continues

German rebar mills appear to have been successful in asking for higher prices in reaction to their increasing production costs, and given the need for restocking in the market.
According to a buyer in central Germany, volumes delivered in the summer months have now been largely used up and reordering has resumed. Consequently, production and lead times are stretching at the mills, he says.
By early October, prices had come down from the summer peak by around €100/tonne ($116) to a temporary low point of €520/t base. In the meantime, they have rebounded halfway, by €50, to €570/t now, which plus the size extra of €265 translates to €835/t delivered, a western German buyer tells Kallanish. When it was at the low point, “we all thought it would drop further, but were proven wrong”, he adds.
In eastern Germany, the price is seen somewhat lower still, at €550/t, but accompanied by signals heard “from domestic mills only yesterday, that they might ask more next week”, a manager says. The price spread between straight bar and rebar in coil, which has gradually widened since the start of the year, is remaining intact. For the latter, the eastern manager just paid a base price of €590/t for a small lot, he says.