Concrete reinforcing steel bar price is in upward trend with higher demand around Tokyo. The price increased to around 59,000 yen per tonne for base size with 19 millimeters diameter compared with around 58,000 yen in the beginning of the year. The supply is expected to get tighter when local makers plan to reduce output by 20% in July-September from April-June due to maintenance. The price could reach 60,000 yen, which is the highest level since June 2005, when local makers increased the selling price by 1,000 yen per tonne for August order.
The price increased to around 59,000 yen per tonne in May due to better demand for condominium and office building especially after April. Tokyo Tekko and Godo Steel increased the selling price by 1,000 yen per tonne while Sanko Seiko and Mukoyama Steel Works, which are smaller sized rebar makers, increased the price by 1,000 yen for August order. The firm demand supports the rebar market. Building starts of reinforced concrete structure around Tokyo increased by 3.2% to 10.04 million square meters in January-June from same period of 2005. Local makers’ rebar output increased by 5.7% to 1.86 million tonnes in the same period. The makers keep 2.5-4 months of order backlog.Japan Steel Scrap Composite Prices (Sangyo Press)
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