Japanese Rebar Makers’ Profits Get Worse

Japanese rebar makers’ profits turn worse. Their ferrous scrap purchasing prices recently increased by more than 10,000 yen per tonne in a year, while their rebar selling prices increased by only 5,000-6,000 yen. Selling margin is shrinking. Costs are also increasing for electric power charge and sub materials such as electrode and ferro-alloy. The rebar makers would post losses in monthly closing. Tokyo Steel Manufacturing, Japanese biggest electric furnace steel maker, has succeeded in timely price hike to pass material cost expansion. Other makers should reflect higher material costs on the selling prices more quickly.Tokyo Steel Manufacturing produces rebar at total 20,000-30,000 tonnes per month in Okayama and Takayama works. The firm raised its rebar selling price to 68,000 yen per tonne for April contracts from previous 54,000 yen for base sized products with 19 millimeters diameter. The selling price increased by 25.9%.The firm’s ferrous scrap purchasing price increased by 13,000 yen per tonne or 50% at Okayama and Takamatsu works in a year. The firm seems to be suffered from lower profitability as well as other rebar makers. However, the firm has succeeded in practical rebar price hike and covered higher ferrous scrap costs.Other rebar makers also tried to raise their selling prices, while the prices doesn’t achieve 60,000 yen per tonne yet. Ferrous scrap purchasing prices currently increased to 35,000 yen per tonne around Tokyo and 38,000 yen around Osaka. Price gap between rebar and ferrous scrap is shrinking rapidly.