Germany has seen a strong improvement in the local rebar demand over the past two weeks, but prices have not yet recovered as buyers still exert pressure. However, the market outlook is positive and stocks are not high, while imports are limited due to quotas almost being exhausted.
Local mills’ prices are still at €660-690/mt ex-works for the remaining volumes of May production and for June a rise of around €20-30/tm is anticipated. "We cannot understand the current pressure on prices. We have good demand and producers have fairly full order books. End-users do not want to understand current circumstances, but only insist on lower prices. They expect to find a cheaper source, but it is not possible at the moment," a trader told SteelOrbis.
On the export side, the outlook is also positive with the absence of Turkey and Russia from the EU markets. Quotas are full for Turkey and Russia until July and are 50 percent used up for Ukraine. Prices have remained stable for the export markets over the past two weeks, like local prices, but, after the allocations for May production will be sold, Germany will offer at higher levels also to export destinations. Currently, prices are at €640-650/mt FOB for export.