Firm Rebar Price in Tokyo, Osaka

Concrete reinforcing steel bar market price accelerated to increase toward demand season when general contractors are expected to purchase rebar for major building projects after the price hit 70,000 yen per tonne for base size around Tokyo in the month. The makers’ average shipping price will increase with the higher selling price.

The dealers try to increase the reselling price to general contractors after the aggressive hike by the makers. The market price reached 70,000 yen per tonne for the first time since 1980. The makers and distributors try to secure the profitability even at cost of the volume.

The firm demand lifted the price. Local makers’ rebar shipment keeps around 300,000 tonnes per month. The supply gets tighter when local makers are in summer time maintenance outage. The shipment is expected to increase after September.

The makers’ shipping price is still 62,000-63,000 yen per tonne. The price gradually increases when the makers keep 3-4 months of order backlog. The makers and distributors seek higher price when the cost increases for raw materials and energy.

Rebar market price is 70,000-71,000 yen per tonne around Osaka. The price could increase to more than 71,000 yen with the firm market even after the price hit 70,000 yen.

The distributors around Osaka try to increase the reselling price to secure profit after the makers increased the selling price to cover higher cost for ferrous scrap and subsidiary materials. The market price is expected to keep firm.

The local demand is firm around Osaka when major building projects start the construction works. A distributor source said the condominium construction is still firm and the buyers will increase the rebar purchase for major building projects.

The rebar supply decreases around Osaka due to maintenance outage. The supply is expected to get tighter and some interests concern the shortage under the strong demand.

A distributor said the market price could increase more when the dealers offer 72,000-73,000 yen per. The price could reach more than 71,000 yen after major holiday in mid-August with the pressure from the supply side.