Flat Rebar Price in Tokyo

Concrete reinforcing steel bar market price is flat at around 70,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. The transaction gets slower in December under very slow building activity due to new building standard law. The dealers cannot increase the reselling price with little new order. The market price is likely to keep the level with very slow demand. The new building standard law impacts on the building activity and materials transaction more and more. Rebar buyers of general contractors reduce the new order to the traders. The rebar makers try to reduce the supply to meet the slow demand to pass higher cost of raw materials when they expect the demand recovery is as early as April and after. The demand is expected to hit bottom in January-March. The rebar makers reduce the output by 30-40% during the period from same period of previous year. The makers cannot insist the higher price though some makers offered 73,000 yen per tonne before. The makers try to keep the price by reducing the supply.