Rebar Market Price in Slight Uptrend at 68,000 Yen/t, Osaka

Rebar market price is strong at 67,000-68,000 yen per tonne around Osaka. General contractors are in wait-and-see mood since they completed rebar procurement for immediate use until November 2010 despite of slight demand recovering trend in the region. Local electric furnace steel makers are trying to penetrate price hike to 70,000 yen for March contracts.

Meanwhile, rebar supply is likely to decrease in a short term when some rebar makers stopped production in North Japan due to mega quake and some makers are affected by planned electric outage around Tokyo. Rebar makers around Osaka may start supply support to North Japan and Tokyo. On the other hand, rebar makers around Osaka would maintain output adjustment in balance with actual demand level in Osaka area for better profitability.

Ferrous scrap market price represents slightly weak around Osaka. But scrap price is unlikely to decrease largely when iron ore and coal prices are strongly rising, according to a local rebar maker. The maker source said they hope to implement additional price hike for April contracts, too.