Reinforcing steel bar market price is expected to see the old year out. The market price is 60,000 yen per tonne for base size with 19 millimeter diameter. The market price was 58,000 yen per tonne in the beginning of 2006, which increased to 59,000 yen in May thanks to the activization of building construction after April, and which achieved at 60000 yen in October in about 18 months because each maker raised their selling price after summer. The market price is expected to start strong tone in the beginning of 2007 because large construction projects would be ordered which has been a delay for the ended of 2006. Building construction floor area of reinforced concrete structure decreased by 5.5% to 16.68 square meters in January-October 2006 from a year ago around Tokyo, which keeps high level. Each reinforcing steel bar maker are increasing their production. The amount of the production increased to 360,000 tonnes by 7% in October from September, by 6% from a year ago, which was highest level since bubble period around 1990. Each maker has order for 3-3.5 months. One electric furnace maker’s top management said there is plenty of the demand for the first half of 2007. It is expected the order for large building construction would increase for the ended of 2006, which the construction demand would keep steady in Tokyo. Each maker thinks they must get fair profit by the increase of their selling price due to runaway growth of ferrous scrap and sub material price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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