Electric furnace makers around Tokyo will increase the selling price of concrete reinforcing steel bar by 1,000 yen per tonne for May orders. They try to pass higher cost of electricity due to higher oil price, ferroalloy and subsidiary materials through the first price hike in one and half year. The makers have talked with general contractors for the hike in a couple of months and start the higher price after a week long holiday in early May. Kanto Steel, which is smaller sized rebar maker, will increase the selling price by 2,000-3,000 yen per tonne to cover recent higher production cost. Other makers increase the price by 1,000 yen after the holiday. Some makers consider increasing the price in May or June to cover surging cost for raw materials and freight. The firm demand supports the hike. Rebar shipment was estimated to reach 300,000 tonnes around Tokyo in April, which is in line with March. The demand is better than usual and stable mainly for condominium construction. The makers keep around 3 months of backlog for base size makers and around 2.5 months for smaller sized bar makers. The market price is expected to increase after some players sold the products at lower price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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