Weak Rebar Price in Tokyo

Concrete reinforcing steel bar market price is weak at around 90,000 yen per tonne for base size direct shipment from makers to users around Tokyo. The buyer of general contractor tries to reduce the price when the rebar makers reduced the selling price to 85,000 yen level. The price is likely to decrease more under the buyers market with slow demand.

The makers’ order receipt is expected to same level in December as around 120,000 tonnes in November. The buyers minimize the order when they expect lower price in near future. The transaction volume is low level when the actual demand decreases due to postpone and suspension of building plans. Uncertainty for future demand increases when bankruptcy of real estate companies and general contractors increase.

Electric furnace steel makers’ ferrous scrap purchase price recovered to around 20,000 yen per tonne level. However, the rebar market interests expect the lower price when the scrap price down is much wider than reduction of rebar market price. The market price would decrease to the level of rebar makers’ selling price.