Tokyo D-bar Steel Increases Rebar Price by 3,000 yen/t in August

Tokyo D-bar Steel, concrete reinforcing steel bar sales joint company of major electric furnace steel makers, Godo Steel and Tokyo Tekko, announced on Thursday the firm increases rebar selling price by 3,000 yen per tonne or about 5% from August order when the firm forecasts ferrous scrap and sub material prices rise in autumn. The firm will raise market price to avoid losing money.

The firm said the inventory temporarily increased due to periodic repair of the makers in summer, but the stock is decreasing in recent days. Funabashi plant of Godo Steel carries out periodic repair on August 17-23. Tokyo Tekko carries out periodic repair in Oyama plant on August 23-30 and Hachinohe plant in August 22-27.

Rebar market price is 61,000 yen per tonne for base size with delivered from steel makers around Tokyo, which continued to decrease from the beginning of this year. However, the price shows sign of bottoming out in recent days. Industry source sees general contractors could increase rebar order before the makers’ announced price hike.

Osaka Steel, Japanese major angle and channel maker, announced on Thursday the firm leaves sales price of angle and channel unchanged for August order. The firm judged it is hard to increase sales price when the demand hovers at a low after the major earthquake. The firm will continue to reduce the output of steel products by around 40% with actual demand. The firm plans to improve sales price depending on ferrous scrap price.