Concrete reinforcing steel bar market price accelerates to increase toward 110,000 yen per tonne in Tokyo and Osaka. The price level is 103,000 yen for base size for direct shipment from makers to users in Tokyo and 105,000 yen in Osaka, which increased by 33,000 yen or more than 40% from the beginning of the year due to the makers price hikes one after another with pressure of higher raw materials cost. The market price could reach 110,000 yen level when the dealers try to pass the higher cost price on the market. The makers offer 110,000 yen per tonne for May order. They try to improve the profitability when they are suffered from narrower margin with more than 65,000 yen of ferrous scrap cost. With the higher price, the dealers try to increase the reselling price to 110,000 yen level as immediate target. The dealers expect the demand could improve in the summer when the buyers inquire on materials procurement for building construction in July and August though the demand is still slow despite of the improvement from the bottom after impact of new building standard law. The makers and dealers try to improve the price level with expectation for better demand.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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