Germany: Steel Rebar prices in Northern Europe remained low during the last week of October, owing to weak downstream consumption and a persistent wait-and-see attitude among buyers. According to market participants, domestic steel reinforcing bar (Rebar) prices delivered to Northern Europe was settled at USD 852-925/MT, down USD 30-70/MT on 19th October 2022. However, mills offered significant discounts on Steel Rebar to stimulate market activity. However, low demand and an uncertain market outlook resulted in insufficient trading activity.

According to the suppliers, end-user demand is low, putting further downward pressure on Steel Rebar prices. Buyers cite a small window in which the Steel Rebar price could fall further. However, it can remain relatively high and profitable for Steel Rebar manufacturers to continue production. While many construction projects in the public and infrastructure sectors are still underway, many have been delayed due to a labor shortage and high building material costs. According to our sources, demand in the private housing sector has dropped dramatically due to the cancellation of numerous projects.

Despite falling Steel Rebar prices, market activity has not picked up. With limited transactions, it has become difficult for market participants to gauge a Steel Rebar market price. Buyers cite that the Steel Rebar manufacturers are lowering costs, but no one is buying. Additionally, if Steel Rebar prices keep dropping, there are the chances of improving trade activity. Steel Rebar prices are still comparatively high, so mills may have to drop quotation prices further.

According to ChemAnalyst, Northern European Steel Rebar prices are anticipated to remain sluggish in the upcoming months. If Steel Rebar inquiries do not pick up and energy costs surge again, mills may be forced to curtail production even further. Despite recent energy price stability, energy prices are likely to rush toward the end of the fourth quarter as demand for energy rises. The Steel Rebar market, on the other hand, is expected to remain rangebound for the rest of the year.