Weak demand for Rebar in Tokyo

Concrete reinforcing steel bar market price is around 70,000 yen per tonne for base size with 19 millimeters diameter, 71000 yen with 13 millimeters diameter and 73,000 yen with 10 millimeters diameter around Tokyo. Each local electric furnace maker announced the price hike by 3,000 yen per tonne for the contract in October. However, the market price lost momentum due to decreased shipment and contract by the impact of the revision of Japanese building standard law.Makers reduce the output by 10-20% after November compared to the same month of last year. They will adjust the supply and demand by the reduced production. They aim to increase the selling price to 73,000 yen per tonne, but can’t raise the price. Maker source said the demand would recover after the beginning of next year. They will keep the output with the demand. Meanwhile, dealers’ contract is making no progress when each general contractor stopped the order. Dealers thought to increase the selling price to 77,000-78,000 yen per tonne for the inventory products, but are leaving the selling price unchanged at 74,000 yen. Dealer source said shipping is starting to move against the influence of Japanese building standard law, but the situation is hard for the price hike. Japanese building construction area for reinforced concrete structure decreased to 1.38 million square meters by 66.2% in September compared with the same month of last year. The area decreased by 18% in July and by 53% in August, which decreased for 3 consecutive months.