Despite the lower demand, the domestic rebar prices have increased further in Germany. Summer holidays have already started in the country but the supply has diminished because of the heavy floods in the northern and western regions of the country. In addition, the import quotas for rebar have mostly been filled for the third quarter and the buyers do not have too many sources to make a purchase. In this outlook, prices have increased by €20/mt over two weeks to €910-930/mt ex-works for September rolling.
"Demand is traditionally low but we expect a quick recovery at the beginning of September. Supply is low and there are many projects in the market. Despite the lower raw material prices, we do not expect a downtrend for rebar here in Germany because material availability is really problematic and it will not be solved fast. Import quotas are too low and heavy floods have caused lower production in the country. Other EU countries also have good local demand and we expect at least until the end of September good demand and strong prices," a trader told SteelOrbis.
No offers have been heard in the export market of Germany due to limited supply and mills being focused on covering the local orders, SteelOrbis understands.