Concrete reinforcing steel bar output increased by 10% to 1 million tonnes around Tokyo in April-June from same period of 2005, which was the highest level since babble economy period. The output increased by 15% to 350,000 tonnes in June from a year earlier, which was 6% higher than 330,000 tonnes in May and topped 340,000 tonnes in April, under firm demand for condominium, office building and redevelopment projects. The supply is expected to become tighter due to planned seasonal maintenance outage by electric furnace steel makers. The rebar shipment increased by 10% to 1 million tonnes in April-June from same period of 2005. The monthly shipment increased by 15% to 350,000 tonnes in June from a year earlier, which was 8% higher than May after the shipment increased to monthly 320,000 tonnes in April and May from 280,000-290,000 tonnes in January and February. The distributors concern the rebar availability could get worse when rebar makers reduce output for maintenance. The inventory decreased by 5,000 tonnes to 145,000 tonnes at the end of June from May. Local rebar market price is flat at around 59,000 yen per tonne for base size with 19 millimeters of diameter. The markers try to increase the selling price to 60,000 yen per tonne in the year under the firm demand while the users of general contractors resist the move. The makers try to cover higher cost of ferrous scrap and other materials through the hike toward demand season in autumn after slow demand the summer.
Japan Steel Scrap Composite Prices (Sangyo Press)
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