Japan Rebar Dealers Hurry to Raise Reselling Price after Makers’ Hike

Market price of concrete reinforcing steel bar reached 60,000 yen per tonne for the first time since August 2010 around Tokyo. The market price upped by 1,000 yen to 60,000 yen this week for base size rebar directly delivered from makers to users while increased by 2,000 yen to 65,000 yen for dealers’ inventory resale. Electric furnace steel makers are strongly offering price hike. Then general contractors are increasing speculative orders with anticipation for rebar price upsurge.

Ferrous scrap market price is approaching 40,000 yen per tonne for H2, steeply rising from 30,000 yen in November 2010. Electric furnaces planned to raise rebar selling price to 65,000 yen for January contracts while started additional hike announcement to 70,000 yen before February contracts.

Dealers and distributors are concerned on steep upsurge of rebar cost price. They aim to raise the inventory reselling price to 66,000-67,000 yen as soon as possible to follow rebar makers’ rapid price hike.

Rebar market price also surged around Nagoya and Osaka this week. The latest price is 63,000 yen for base size rebar directly delivered from makers to users. Dealers are strengthening their reselling stances with an outlook that rebar makers should launch additional price hike. Regional actual demand for rebar maintains low level while general contractors are increasing order volume gradually.