Rebar Makers Cut Output Widely in 2H, Tokyo

11 rebar makers around Tokyo are likely to reduce their outputs in the last half of fiscal 2008 (Oct08 – Mar09) when general contractors stopped the orders. The order volume to rebar makers from large dealers is significantly decreasing after August. Each maker had planned output reduction by 20-30% in 2H of F2008 compared with the same period of F2007. However, they would implement more volume cut by 30-40%. Their production might decrease more.

Large dealers’ order volume decreased by over 90,000 tonnes to 140,000 tonnes in August from July around Tokyo and hit as low as 100,000 tonnes in September. In usual years, the order volume is 270,000-280,000 tonnes around Tokyo.

The order volume decreased by over 60% in September compared with the usual year. General contractors are likely to continue stopping procurement in October. Consequently large dealers’ order volume may fall below 100,000 tonnes in October.

Some makers changed the output plan in 2H, which decreased the output by 40% from originally scheduled 20% in 2H from the same period of last year. General contractors’ order volume is decreasing after August, especially from large dealers.