Firm Rebar Price in Tokyo

Concrete reinforcing steel bar market price is firm at around 73,000-75,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. The makers are reluctant to offer the price when they try to find the best way. The dealers expect the makers could offer more than 80,000 yen to cover higher cost for materials while the buyers could resist the high price under very slow building activity. The market is calm before the storm by makers’ wide hike with high ferrous scrap and ferroalloy cost.

A dealer source said the order receipt decreased by around 30% in January from a year earlier and the order could decrease more in February. The demand was very slow when building start dropped widely in recent months after new building standard law started in June 2007.

A dealer source said the general contractors get order with less than 75,000 yen per tonne of rebar price. The buyers could resist the wide hike by rebar makers. The market shows mixed sign with very slow demand and strong cost pressure by supply side.