Rebar Market Price Continues Lowering, Tokyo

Market price of concrete reinforcing steel bar continues lowering around Tokyo. The price declined by 5,000 yen to 95,000 yen per tonne this week. The price has decreased by total 18,000 yen from the recent peak in September 2008 and became below 100,000 yen for the first time in 6 months. Some dealers already present as low as 90,000 yen. Rebar makers have currently reduced their selling price by total 30,000 yen. Rebar market price is likely to decline more.

General contractors are offering price cut aggressively against dealers after Japanese major rebar maker announced that the firm sets its rebar selling price at 85,000 yen per tonne. General contractors ask lower prices to reflect rebar makers’ price down. A dealer source said the reselling price might reach as low as 85,000 yen within this year.

General contractors are negative to increase their rebar inventories. Rebar makers’ order receipt volume is expected to keep flat in November compared with October. Meanwhile, new building constructions recently tend to be postponed or canceled. A pessimistic outlook is heard that rebar demand would decrease by more than 30% compared with the original plan. Actual demand seems significantly weakening.