Rebar Market Price Hits Lowest 60,000 Yen/t in 4 Months

Market price of reinforcing concrete steel bar decreased to 60,000 yen per tonne for the first time in 4 months around Osaka. The market price is unlikely to hit bottom when general contractors strongly require price cut to dealers.

Tokyo Steel Manufacturing announced to reduce rebar selling price by 3,000 yen per tonne for August contracts. With this announcement, anticipation is growing for continuous price down. A dealer source said general contractors seem to regard Tokyo Steel’s price is the decent level in balance with ferrous scrap market price though other electric furnace steel makers around Osaka don’t reduce selling price.

Many dealers aim to maintain reselling price at above 60,000 yen but some dealers already lowered the price to below 60,000 yen.

In Tokyo, rebar market price decreased by 2,000 yen to 60,000 yen for direct delivery from makers to users. General contractors strongly requested price cut to dealers since ferrous scrap price dropped down.

Local rebar demand maintains low. Rebar makers’ order receipts decreased to 108,000 tonnes in June, which is expected to 100,000-105,000 tonnes in July. Dealers say rebar market price would decline gradually due to low demand and ferrous scrap price. The market price may represent below 60,000 yen for the first time in 4 months.