Weak Rebar Price around Tokyo

Concrete reinforcing steel bar market price is weak at around 85,000 yen per tonne for base size for direct shipment from makers to users around Tokyo. Some transaction prices are less than 80,000 yen per tonne for the price declining trend while the business activity starts from this week. The price is declining under the uncertain situation which rebar makers don’t announce the pricing.

The order receipt by makers around Tokyo is estimated to 120,000 tonnes in December, as same as previous month. Rebar demand in January would fall due to postpone or cancellation of condominium construction in January-February. Makers’ order receipt seems to be as low as 100,000-150,000 tonnes in January when the general contractors keep holding off the purchase of rebar. The market price would more decline due to the softening demand.

Makers’ rebar prices are about 10,000 yen higher than price requirement by general contractors. Ferrous scrap market price is around 15,000 yen per tonne. Small diameter products price is decreasing quickly and the rebar price forth base size is decreasing by a degree, too. The pressure for price cut is strong by users to rebar makers. The market price is expected to decline.