Market price of concrete reinforcing steel bar is increasing at around 59,000 yen per tonne for base sized product with 19 millimeters diameter around Tokyo. The price is 1,000 yen higher for 13 mm product and 3,000 yen higher for 10 mm product compared with base size price. Local output of small bar making electric furnace steel makers is estimated to be 320,000-330,000 tonnes in June, which is in line with May. The supply balance is likely to keep tight when local makers reduce the output due to seasonal output reduction under higher electricity cost during summer. The local makers small bar output is expected to decrease by around 10% in July-September from April-June. The summer time output reduction, under which makers reduce the output due to demand season electricity peak cut, is expected to be longer than usual when makers plan renewal workings for old facilities. A source of trading firm said makers’ delivery could delay with lower inventory. The demand is expected to keep firm through the year. Rebar makers try to find the timing for another price hike when the ferrous scrap price keeps high and subsidiary materials’ prices increase. The makers try to seek moderate hike to be accepted market condition. The cost pressure is likely to push the rebar market price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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