According to Austrian observers, rebar offer prices decreased significantly last week, outpacing the decrease seen in Germany and in line with the trend in Italy. However, there are signs that prices may stabilise in the future.
An Austrian source reported that just before the Italian public holiday on Friday, base prices were offered at just above €300/ton ex-works. Local producers were quick to follow suit, sending an offer of €345/ton for delivery on 1 June.
German suppliers will also need to adjust their offers considering the impact of the Italian market as the German domestic market is also weakening. Although offers are still expected to be above €400 in Germany, this is a decrease from the €450+ level reported last week.
Moreover, border crossing offers from Italy to Germany will also be below €400/t, offering a favourable option for buyers in southern Germany, extending to Hesse and Thuringia. In order to determine effective prices, the additional cost of €265/t in the conventional dimension needs to be taken into account.
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