Rebar Price Shows First Decline in 6 Months in Osaka

Concrete reinforcing steel bar market price declined to 63,000 yen per tonne for direct shipment from makers to users around Osaka, which decreased for the first time since late December 2009. The demand remains low and general contractors require the price cut.

The shipment decreased in June compared with the level in May. While the decrease in ferrous scrap price and steel selling price cut by Tokyo Steel Manufacturing, general contractors hold the rebar order to distributors. Some dealers reduce the selling price to secure the shipment while the demand is unlikely to increase. The general contractors require the dealers to reduce the selling price below 60,000 yen per tonne, one dealer source said.

The dealers are concerned about the decline in the market price while Osaka based rebar makers would try to keep the selling price in July.