Japan Rebar Industry Warns Oversupply

Nippon Steel’s managing director Kenji Hiwatari said to reporters on Monday Japanese electric furnace steel makers produce concrete reinforcing steel bar more than the demand despite of the slow demand when the inventory rate is high. He said the makers should be cautious for the supply balance when the production and shipment decreases both in month to month and year to year. He said the makers should wait timing for better housing start and building start while they try to improve the oversupply.

Kyoei Steel’s chairman Shuichiro Takashima said to reporters the buyers hold the order when ferrous scrap market entered into adjustment while the buyers were expected to increase the order. He expects the buyers will increase the order in September and October while the demand is slow in summer season. He expects domestic makers’ production will decrease when the makers plan maintenance outage during summer.

Mitsui & Co. Steel’s director Toshiya Adachi said to reporters the market is very slow in order, transactions and shipment. He said rebar order to makers around Tokyo is more than 150,000 tonnes in June and 940,000 tonnes in January-June. He said the order is annualized 1.8 million tonnes level but the order would catch up with last year level when the buyers increase the order toward autumn with recovering building activity.

Ministry of Economy, Trade and Industry’s director of iron and steel division, Koichi Shioda said to reporters the rebar demand will increase when the government’s first extra budget increases the demand in and after summer. The makers should be cautious for oversupply by watching economy trend and rebuilding activity for damaged area by the major earthquake while housing start improves recently.