Demand has recovered further and supported local prices in the German rebar market since last week. Local rebar prices are now at €470-490/mt ex-works, up €10/mt over the past week. Market players are positive regarding the current sufficient demand levels and rather active business activity. "New price levels are already being accepted by buyers. We do not expect any price declines due to lower scrap prices at the moment because stocks are low in the country and end-user demand is good," a trader told SteelOrbis. Also, the fear of possible shutdowns because of Covid-19 has caused contractors to speed up work on their projects.
"Most construction companies want to finish their projects early because the number of Covid cases is high in the country and they are afraid of possible shutdowns. Also, there are additional projects in the market, which are waiting for approval. In this situation, producers aim to achieve €500/mt ex-works and above before the year ends," another trader told SteelOrbis.