Concrete reinforcing steel bar market price is firm at around 70,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. The local output increased by 12% to 310,000 tonnes in September from August while the output was 7% lower than a year earlier. The demand is slow due to confusion under transition to new building standard. The makers could have to reduce the output to meet slower demand. The local rebar output was 290,000 tonnes in September, which was 1% higher than August and 10% lower than a year earlier. The inventory level was 190,000 tonnes, which was 16% higher than August and 21% higher than a year earlier. The output was 15,000-16,000 tonnes higher than shipment, which represented averaged more than 1,000 tonnes per month overproduction for each mill. The local makers are expected to reduce output by 10-20% from October compared with normal level. The order from buyers drop widely and the makers could reduce the output more under the lower demand. The makers would reduce the supply to increase the selling price to 73,000 yen per tonne level in order to cover higher cost for raw materials, energy and freight when ferrous scrap market price keeps 40,000 yen per tonne level.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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