Strong Rebar Price in Tokyo

Concrete reinforcing steel bar market price is strong 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 movement. Ferrous scrap price keeps 40,000 yen per tonne and is expected to surge to around 45,000 yen in the last half of fiscal 2007 ending March 2008. Rebar makers are prospected to raise the selling price more. The dealers aim to pass the higher costs on the reselling price.Market source said rebar shipment decreased by 10% in September compared with August impacted by the revision of Japanese building standard law. Some makers forecast the demand don’t recover in October-December and try to keep their production level along with the demand. Rebar makers seeks achievement of current hike as soon as possible to cancel price gap between ferrous scrap market price and the makers’ rebar shipment price at 64,000-65,000 yen per tonne.The makers aim the selling price at around 73,000 yen per tonne, the same level around Osaka.