Ibaraki based small steel bar making electric furnace, Kanto Steel will reduce the concrete reinforcing steel bar output by more than 20% in January-March from same period of 2007 to meet very slow building activity. The firm also studies potential price hike in the quarter to cover higher cost for ferrous scrap and materials. The firm also seeks concrete order with volume and delivery schedule to the buyers when the raw materials price move has uncertainty. The rebar shipment decreases especially since mid-December and the firm now expects the shipment will decrease by 20% from a year earlier. The firm said the slower building activity caused by confusion for new building standard law started to impact on smaller sized rebar though the impact was mainly for standard and larger sized products before. The firm expects the new order receipt will decrease by more than 20% in December from a year earlier and could decrease more in January-March. The firm tries to balance the output level to the low level demand by reducing the output, order acceptance and shipment by more than 20% in January-March from same period of 2007. The firm tries to seek the chance to increase the selling price during January-March with narrowing the margin under higher raw materials cost. The firm improves the selling price level when ferrous scrap price increases with strong demand for integrated steel makers and electric furnaces at home and abroad. The firm also tries not to fix the price for long term when the firm is suffered from higher materials cost with long term fixed selling price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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