Weak Rebar Price in Tokyo

Concrete reinforcing steel bar market price is weak at around 100,000 yen per tonne at direct shipment from makers to the users around Tokyo. The price is expected to decrease more when some transaction is around 95,000 yen and transactions at less than 100,000 yen of makers’ selling price increase.

The makers’ order receipt is estimated to be around 119,000 tonnes in October, which was around 20% higher than September level, but the order is still low and is expected to keep low. The buyers expect lower price and purchase only immediate use in November. Some general contractors indicate 85,000 yen per tonne of bid while the makers resist the lower price.

The actual demand is decreasing when the developers revise the building plan for condominium with current slow estate market. The rebar makers try to improve the supply balance by reducing the output by more than 10% in November from October. However, the market still expects makers would reduce the selling price sooner or later when the makers keep 100,000 yen per tonne of selling price while ferrous scrap price is just more than 10,000 yen.