The domestic rebar prices have increased by €130/mt to €800-830/mt over the month in the Germany rebar market and demand has recovered completely. Strong demand and low stock levels have provided the mills with the needed support.
The lockdown has eased significantly in Germany taking into account the advancing vaccination process and in this outlook market players do not expect any restrictive measures to be imposed any time soon. In addition, the projects, which have been postponed during the lockdowns, have been re-started and the demand has quickly recovered. Higher business activity is expected in the upcoming period and, as a result, buyers have accepted the recent increase in the prices levels, fearing that later they will be forced to pay higher. "Producers have mostly sold out June production and some producers want to wait a little bit before they announce July prices. Buyers have accepted current levels because they think prices will increase further and also they are willing to buy for July because stocks are low in the market, and demand is getting better day by day," a trader told SteelOrbis.
No export offers are heard in the market because of the strong local demand. After July offers are announced, it will be again possible to hear export offers but many sources expect higher prices, minimum export price will be €850/mt FOB according to market sources.