Japan Rebar Demand Bottoms Out, Japan Rebar Makers’ Group

Mr. Eiji Hashimoto, chairman of Japanese concrete reinforcing steel bar makers’ group said at monthly press conference on Tuesday the market of construction steels including rebar is still critical condition. The director of Nippon Steel said the rebar demand bottomed out and the makers should try to improve the market condition.

Japanese rebar production in October was 740,000 tonnes compared with 722,000 tonnes in a year earlier and marked the second year-high after 745,000 tonnes in May 2010. Mr. Hideichiro Takashima, vice chairman of the group said the production level was too high for the demand condition. The chairman of Kyoei Steel said rebar market price decreased in July and August after high level production May and June. He warns the members should watch the demand and the price.

The group reported offshore ferrous scrap market price increased by around $20 from October when steel makers in Turkey, China and South Korea increases the purchase volume. However, the Japanese ferrous scrap market price increased by around 3,000 yen per tonne and the price could be overvalued compared with international market.