Concrete reinforcing steel bar market price is firm at around 70,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. Kanto Steel increased the selling price by 3,000 yen to 73,000 yen for October order and other makers are likely to follow the move. The dealers will pass the higher cost price on the reselling price pressuring the market. The makers are suffered from higher cost for raw materials and energy when ferrous scrap price hits 40,000 yen per tonne. Their margin is squeezed when their averaged shipping price is still just more than 64,000 yen per tonne. They try to improve the profitability by improving the selling price. The demand is slow due to transition to new building standard law. The dealers expect the demand could keep slow for a while. However, the dealers try to increase the reselling price to secure the profit under the higher cost price and the market could accept the higher price gradually.
Japan Steel Scrap Composite Prices (Sangyo Press)
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