Rebar Price Upsurge Slows Down in Tokyo

Upsurge of concrete reinforcing steel bar price is getting slow. The market price is 108,000 yen per tonne around Tokyo for base sizes directly delivered from the makers to the users. Local dealers’ sales price is 110,000 yen per tonne delivered from their inventories. Local rebar makers aim to raise the selling price to 110,000 yen per tonne. However, the price upsurge slows down due to decreased demand.Rebar orders from the large dealers to the makers decreased by 20% to about 240,000 tonnes in May from April. A large dealer source said the actual contract volume seemed to decrease by 30-40% between rebar makers and general contractors in May from April. Orders from general contractors is decreasing when the demand reduced by the revision of Japanese standard law and condominium building construction project was stopped or was put off.Rebar makers are trying to raise the selling price to regain the monthly profits. However, some maker sources expect the orders from large dealers may decline more in June.