Rebar Price Hits 60,000 yen/t in Tokyo

Concrete reinforcing steel bar price reached 60,000 yen per tonne for base size with 19 millimeters diameter around Tokyo, for the first time in one and half year. The market price finally increased by 1,000 yen after local rebar makers increased the selling price by 2,000 yen for October order. An electric furnace steel maker source said the demand condition is firm in the year when the demand is firm both for base sized and smaller sized rebar. The price is expected to keep the high level when trading firms and distributors try to increase the reselling price. The local market price was 58,000-59,000 yen per tonne after the price decreased to less than 60,000 yen in June 2005. The price has kept firm at around just more than 59,000 yen after the supply got tighter in mid-May. Local makers try to increase the selling price under the tight supply of rebar and around 30,000 yen per tonne of H2 grade ferrous scrap. The firm construction demand supports the market price. Local rebar shipment is firm when the shipment is averaged 320,000 tonnes per month and the shipment increased to more than 350,000 tonnes in June. The condominium housing start is expected to increase to 50,000 units in second half of the year from 34,000 units in the first half. The rebar supply is expected to keep tight when general contractors are expected to increase the order for rebar. Distributors’ rebar selling price is firm at 65,000 yen per tonne at dealers’ site. The price is expected to increase by 1,000 yen in November after 1,000 yen increase in October. The users have no choice to accept the higher price unless they abandon the on time delivery when the distributors are decided to increase the reselling price. The market price is expected to keep firm under firm demand for condominium and office building.