Concrete reinforcing steel bar shipping volume continues to increase around Tokyo with strong construction demand. Rebar shipment around Tokyo increased by 2% to 320,000 tonnes in May from April, which increased by 12% from a year ago, thanks to favorable orders mainly from mid- and small-sized general contractors in April-May. Rebar orders are expected to increase hereafter from super and large general contractors. Rebar makers and distributors in the region raised their selling prices due to material and fuel costs expansion and the price hike has spread under tight supply. Rebar production around Tokyo decreased by 5% to 330,000 tonnes in May from April, increasing by 6% from a year ago. The supply and demand maintain balanced in the market when the makers continue to keep their production and sales at the level of immediate demand. Rebar inventory kept flat at 150,000 tonnes in May from April. Trading house source said rebar orders continue increasing from general contractors around Tokyo. The orders increased mainly from mid- and small-sized general contractors in spring and are likely to increase from super- and large-sized general contractors toward summer. Rebar supply seems to tighten more when the makers are already difficult to adjust their production. The makers sustain strong selling stances with increasing backlogs. Rebar market price is increasing at around 59,000 yen per tonne for base sized products with 19 millimeters diameter. The makers around Tokyo raised their selling prices by 2,000 yen per tonne for May contracts and by 1,000 yen at the beginning of June.
Japan Steel Scrap Composite Prices (Sangyo Press)
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