Rebar Price Hits 100,000 yen/t in Tokyo

Concrete reinforcing steel bar market price exceeded 100,000 yen per tonne around Tokyo. The price increased by 3,000 yen to 101,000 yen per tonne for base size with 19 millimeters diameter for inventory sales by dealers while the price for direct shipment from makers to users reached 98,000 yen. The price is the highest level in 34 years. The dealers try to increase the reselling price to cover higher cost price after the makers increased the selling price to more than 100,000 yen per tonne for April order. The dealers increase the price level aggressively though the demand is still low level due to after effect of new building standard law. The market price increased by 25,000-28,000 yen per from the beginning of the year and could increase more when the dealers target 102,000 yen for direct shipment from makers and 105,000 yen for inventory sales based on 100,000 yen of cost price. The dealers accept the order with cautious screening depending on the price, volume and delivery timing. Despite of the market price increase, the makers shipping price is still averaged 70,000 yen per tonne due to lower priced existing order. The makers are suffered from as high as around 55,000 yen per tonne of ferrous scrap price. The makers also try to find the timing for additional hike.