Rebar Makers Continue Output Reduction for Dec-Jan, Osaka

Rebar makers around Osaka continue output reductions or enlarge output cut range for December-January. The average output cut range will be 35-40% compared with the level before Lehman’s fall. The makers aim to improve selling price by output adjustment in balance with low demand in construction market.

Among base size rebar makers, Nakayama Kogyo suspended operation for November 29-30 and the firm’s rebar output in November became 35% lower than the pre-shock level. The firm will stop the plant during the year-end and New Year holidays for December 29-January 3. The firm’s rebar output in December and January is estimated to become as low as in November.

Rebar production at Mizushima works of Daiwa Steel was 35,000 tonnes in November, which decreased by 30-35% from the pre-shock level. For December-January, the works enlarges the output cut range to around 40%.

Among thin rebar makers, Hirakata works of Kyoei Steel reduced the output by 35% for October-November compared with the pre-shock volume. The works will enter the year-end and New Year suspension for December 28-January 5 and reduce the output by 35-40% for December-January against the pre-shock level.

Kishiwada Steel is under regular maintenance of rolling mill for November 29-December 12. The operation ratio is forecasted to become 60% for December-January due to low demand, according to the firm’s executive officer.