Electric Furnaces Raise Rebar Price by 1,000 Yen/t in Tokyo

Electric furnace steel makers around Tokyo raised their selling price for concrete reinforcing steel bar by 1,000 yen per tonne for June contracts. The makers increased their prices for 2 months in a row by total 3,000 yen per tonne to pass surging material and fuel costs. The makers aim to advance the price improvement when rebar demand is firm for condominiums and office buildings around Tokyo.Tokyo D-Bar Steel, the sales joint venture between Godo Steel and Tokyo Tekko, raised its rebar selling price by 1,000 yen per tonne in June. The firm plans another price hike within June to pass increasing costs for electric power, sub materials and transport. Kanto Steel, which produces small sized rebar, plans to raise its selling price by 2,000 yen per tonne in June. Other makers also seem to raise their selling prices.Rebar demand maintains brisk in Tokyo. Makers’ rebar shipment stays at the favorable level around Tokyo which was 280,000 tonnes in January, 290,000 tonnes in February, 330,000 tonnes in March and 320,000 tonnes in April. There are many redevelopment construction projects and some public works around the region. Rebar shipment is expected to keep the level in May as same as April. Trading house source said the demand would remain the good condition.Rebar market price is increasing from current 59,000 yen per tonne for base sized products with 19 millimeters diameter delivered directly from makers to job sites. The price is likely to continue increasing, which rebounded by 1.7% or 1,000 yen per tonne in May from April, turning upward for the first time in 6 months. Makers and dealers keep strong selling stances and the market price would keep strong for a while.