Concrete reinforcing steel bar market price increased by 3,000 yen to 95,000 yen per tonne for direct shipment from makers to users and to 98,000 yen for inventory sales by distributors in Tokyo in the week. The dealers try to increase the reselling price after the makers raised the selling price by 10,000 yen to 100,000 yen for April order. With the pressure by supply side, the market price could increase more. The market price increased by 25,000 yen per tonne for direct shipment and by 23,000 yen for inventory sales from the beginning of the year when the makers increased the selling price to cover higher ferrous scrap cost. With 100,000 yen per tonne of cost price, the dealers try to increase the reselling price to 102,000 yen for direct shipment and to 105,000 yen for inventory sales in the month. The demand is still slow and is expected to keep slow when building start decreased by 14.5% in February from a year earlier despite of 9.7% higher than January. The building activity is slow after start of new building standard law in June 2007. The makers’ shipment is running at 10-20% lower than a year earlier level. The makers try to balance the supply to meet slower demand by reducing the output and shipment in order to improve the selling price and profitability.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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