Rebar Price Rises by 3,000 Yen/t in Tokyo

Concrete reinforcing steel bar market price surged by about 3% or 3,000 yen to 108,000 yen per tonne compared with last week around Tokyo for base sizes directly delivered from the makers to the users. Local dealers raised their reselling price to reflect rebar makers’ price hike. Meanwhile, the speed of the price up became slower than ever when the sale of condominium buildings is dull and the rebar demand seems weakening.Rebar makers have raised the selling price by about 40,000 yen per tonne since the beginning of this year to reflect higher ferrous scrap and sub-material costs. Large and small dealers passed the upsurge of cost price on their reselling price.The demand trend is turning. Large dealers’ accepted order volume for rebar decreased by 30-40% in May from April. Small dealers’ shipment downed by about 20% in May from last month. Demand for rebar continues to represent year-on-year down impacted by the confusion after the revision of Japanese building standard law. Additionally condominium building sale is recently decreasing. General contractors are showing disapprovals on steel makers’ price hike.Rebar makers aim to make the selling price at 110,000 yen per tonne approved by the consumers to reflect higher ferrous scrap cost. However, the demand is expected to show downtrend after summer.