Tokyo D-Bar Steel Increases Rebar Price by 2,000 y/t in August

Tokyo D-Bar Steel, a joint sales company of Godo Steel and Tokyo Tekko, Japanese major rebar makers, increased the selling rice of rebar by 2,000 yen per tonne in August order from Monday. The selling price achieved to 70,000 yen per tonne for base size with 19 millimeters diameter since 1980 for the first time in 27 years. The firm keeps steady supply by the price hike when ferrous scrap price is continuing high level from the beginning of this year and the price of ferro-alloy, electric power and electrode is increasing.The firm increased the selling price by total 6,000 yen per tonne in January and May, and increased by 2,000 yen in April due to increased ferrous scrap price. Makers purchasing price of ferrous scrap around Tokyo is 36,000 yen per tonne for H2 grade at the present day. The price increased by about 10,000 yen or about 40% compared with July 2006, which is pressing electric furnace makers’ profit.Ferrous scrap price is forecasted to close to 40,000 yen per tonne due to increased demand from autumn. Moreover, makers’ variable charge is expected to increase by 2,000-3,000 yen per tonne except for ferrous scrap in the last half of fiscal year for September-March 2008. Makers’ shipment price keeps low at 63,000 yen per tonne.The demand keeps firm. The order by general constructors decreased by 20% to 220,000-230,000 tonnes for May-June around Tokyo compared with usual months because new business negotiation was lower after April. Their orders were concentrated in January-March. However, the makers’ shipment is firm at around 300,000 tonnes per month. Building construction objects is scheduled after autumn. The firm has contract balance for around 5 months.