Osaka Rebar Makers Continue Cautious Production Along Actual Demand

Mr. Hideichiro Takashima, chairman of Osaka based concrete reinforcing steel bar makers’ group, attended a regular press conference on Wednesday and gave a market review that integrated steel makers’ pig iron price and ferrous scrap market price are strongly expected to surge for July-September. He said rebar makers currently maintain their selling price to avoid market confusion while keep adjustment of production and sales volume in balance with actual demand.

He explained rebar demand keeps stagnant with general contractors’ weak buying motivations. Meanwhile, he said, rebar makers’ delivery lead time keeps unchanged at 1.5 months for base size products and 1 month for thin products.

Mr. Takashima said ferrous scrap price had increased to 40,000 yen per tonne from 20,000-25,000 yen at the beginning of this year while currently declined to 30,000 yen. He analyzed the market price seems hitting bottom. As to local rebar makers’ operations, he explained they continue production cut and keep the level in balance with actual demand for a while. Mr. Takashima required rebar traders should try to sustain the reselling price level though the demand stays inactive.