Rebar Output Increases in Tokyo

Concrete reinforcing steel bar output decreased to 270,000 tonnes by 4% in February from a last month and by 7% from a year earlier around Tokyo because Funabashi works of Godo Steel stopped the steel making operation for January-February for renewal construction of rolling mill. In March, the output is expected to recover to 310,000 tonnes in the same level compared with Mach 2006 when the works re-started the operation and the demand is strong for private building constriction. Local rebar shipment increased to 310,000 tonnes in February, which was 8% higher than January and decreased by 6% over a year earlier. The demand for higher condominium and office building construction keeps firm. However, rebar makers’ shipment price is low. Their profits are reducing by increased material price. Maker source said some makers may get into the red for the meantime. The inventory held by makers and distributors around Tokyo decreased to 170,000 tonnes in the ended of February, which decreased by 20% from January and 30% from a year earlier because Funabashi works reduced the inventory largely. Each maker feel a sense of crisis for higher material price that ferrous scrap price is closing at 40,000 yen per tonne, which are raising their selling price. The output and shipment is expected to keep high level when the orders of big building projects are scheduled in near future.