Strong Rebar Price in Tokyo

Concrete reinforcing steel bar market price reached 90,000 yen per tonne around Tokyo for the first time in 35 years. The price increased by 2,000 yen or 2.3% for base size with 19 millimeters diameter in large lots at the end of last week, the highest since 1973. Rebar makers are offering selling price higher than 90,000 yen. Dealers and distributors are trying to follow the hike. Dealers’ reselling price for small lots also surged by 3,000 yen or 3.3% to 93,000 yen per tonne including freight.Dealers’ reselling price for large lots has increased by 20,000 yen per tonne or 28.6% since the beginning of this year. Makers are suffered from worse profitability due to higher ferroalloy and electric power costs. Small-lot price has surged by 18,000 yen per tonne or 24% since the beginning of this year. Dealers are aiming 95,000 yen in early April and offering price hike to reflect higher material costs.Ferrous scrap price exceeded 50,000 yen per tonne for H2 grade, increasing by about 18,000 yen per tonne or 50% compared with the end of December 2007. Rebar market price is expected to keep upward when ferrous scrap price is expected to rise more.