Nakayama Steel Products to Continue Rebar Output Cut in December

Osaka based electric furnace steel maker, Nakayama Steel Products plans total eight-day plant outage in December and decreases output volume of concrete reinforcing steel bar compared with level in October-November. The output cut rate will be around 40% against the usual volume due to eight-day suspension. The firm implemented seven-day outage in October and five-day suspension during November 1-21, adding two-day scheduled stoppage within this month. The firm adjusts output volume with actual demand level and tries to improve the product price.

Rebar market price is currently 56,000-57,000 yen per tonne around Osaka for base size products directly delivered from makers to users. Demand has gradually recovered while general contractors have continued to minimize procurement volume. Rebar makers try to stop the price down and keep the offer price at least 60,000 yen. Makers seek the timing to raise the selling price in balance with ferrous scrap market price.

Nakayama Steel Products will enter the year-end and New Year holidays on December 27 and restart operation on January 5.