Northwest Europe remains sensitive to rebar

In late June, German mills' base prices were largely seen around €350/ton ($385), while lower offers were reported from subsidiary producers. This situation has now spread to the major producers as well.

The manager of a major distribution company says that the sales staff of the plants are facing a paralysed market, while the purchasing staff are frustrated by the relatively stable scrap prices. "In recent weeks, international scrap prices have not decreased as much as final product prices," he observes. In fact, E3 demolition scrap has decreased by around €70/t since April, while rebar values have decreased twice as much, which has had a negative impact on mills' margins.