Domestic rebar demand has been slow in Germany ahead of the upcoming Easter holiday. However, prices are mainly expected to increase taking into account a certain acceleration seen in construction projects in the country. Normally, seasonal factors would have brought trade to a much higher level, but the Covid-related restrictions have affected the situation. Still, most companies are optimistic and think demand will improve, though the season will be delayed somewhat. For now, prices have not changed in the last two weeks and are still at €630-660/mt ex-works for April-May production.
Despite the positive expectations in the rebar market, Germany may face tougher measures against Covid-19 after the holiday period. However, they are expected to target daily life rather than trade and businesses. "Projects have already started to accelerate and, with the support of better weather conditions, we will see better demand. Stocks are not high in the country and buyers have to restock soon. Also, scrap prices are increasing and major rebar producers in the EU have already pointed towards higher levels. We believe we will definitely see better price levels in April," a trader told SteelOrbis. In this situation, steel demand is expected to recover and higher rebar prices are very likely.
In the export market, demand has continued to recover but buyers have still bought only in line with their urgent needs. Prices have been stable at €620-630/mt FOB within the past two weeks.