In the local German rebar market, prices have increased over the past two weeks, while demand has remained strong. Buyers still believe prices are very high, but end-user activity has been strong while stocks are currently low.
Local mills are offering €670-700/mt ex-works for May, increasing by €10/mt, and allocations are very limited. "Most of May production has already been sold out and producers are ready to increase their prices further for June. Imports are also restricted due to the import quotas in the EU. Buyers are still not comfortable with the prices, but they know if they do not buy they may be short of stocks. It is a very big risk which nobody wants to take, " a trader told SteelOrbis.
On the export side, prices have also increased by €10/mt, to €650-660/mt FOB, and these levels are considered to be acceptable, especially in northern destinations. German exporters expect to see better demand because prices in the target destinations are increasing day by day and their levels are considered to be acceptable.
In addition, this week it has been heard in the market that Turkey has been offering rebar for late July shipment at $750/mt FOB to Germany. Some sources report the price has been found to be acceptable and that around 10,000 mt have been booked lately.