German rebar producers are planning to increase their prices by €50-80 per tonne in April, but buyers are doubtful whether this can be achieved due to low demand.
Mills have been struggling to close deals in excess of €700/tonne delivered in recent weeks. Some buyers are skeptical that producers will be able to secure any increase, while others think that they will be able to increase by €30 at most.
A Dutch source said he has heard of an even lower increase of €20-30 and doubts that it will be accepted.
Scrap prices, which have increased by around €80/tonne since the beginning of the year, are thought to make a price hike possible, but producers are facing the problem of low demand as many residential construction projects have been canceled since last year.
The low demand, combined with producers' inability to lower prices, is causing them to make losses.
Buyers are waiting to see if the price hike announcement is realistic and will be accepted in May when the next buying spurt is expected.
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