Rebar Market Price in Uptrend at 58,000 Yen/t around Tokyo

Market price of concrete reinforcing steel bar (rebar) is in uptrend at 58,000 yen per tonne for direct shipment transaction from makers to users and 62,000 yen for dealers’ inventory wholesales around Tokyo. Rebar makers are aggressively appealing price hike when ferrous scrap price exceeded 35,000 yen per tonne. The makers aim to bring up the market price to 60,000 yen per tonne and eye additional hike at the beginning of next year. Most regional makers are posting monthly losses.

Win First, a cooperative sales company among thin rebar steel makers around Tokyo, recently announced the selling price hike to 60,000 yen for December contracts. Tokyo D-bar Steel, a cooperative sales company among base size rebar makers, also announced the selling price hike to 60,000 yen for December 16-31 contracts and to above 65,000 yen for January contracts. Both sales companies aim to put high material costs on the rebar price. Other rebar makers have also moved to improve the selling price.

Rebar makers’ shipment volume is gradually increasing but the unit price maintains low level. The makers’ order backlogs were also contracted at cheap prices. Ferrous scrap price is likely to surge more at the begging of next year since iron ore and coal prices are expected to rise for January-March. Some rebar makers forecast ferrous scrap price may reach 40,000 yen per tonne. General contractors are unwilling to approve the price hike but rebar makers cannot improve profitability without the hike.