Japan Major Rebar and Angle Makers Raise Selling Price in April

Kyoei Steel, Japanese largest rebar maker, announced on Wednesday the firm raises the selling price of rebar by 5,000 yen per tonne for April contracts. The firm raises the price for 3 months in a row, increasing the price by total 10,000 yen in February and March. The firm decided the latest hike to sweep loss-making sales and keep the stable product supply. The firm examines the additional hike watching ferrous scrap price and strong overseas market conditions.

Kyoei Steel continues the wide-range output reduction and the decrease of the order receipt volume. The firm has decreased the rebar output at the all works due to low demand and market price. Rebar market price stays low when domestic construction market maintains stagnant.

On the other hand, offshore steel demand is expanding and ferrous scrap price is strongly surging. Ferrous scrap price would rise more since iron ore and coal prices are expected to increase largely in fiscal 2010 starting in April.

Osaka Steel, a major angle and channel maker, announced on Wednesday the firm raises the selling price of angle by 7,000 yen per tonne and channel by 9,000 yen for April contracts. The firm continues to decrease the order receipt volume. Building construction demand keeps slow when private companies don’t restart large-scale investments. But Osaka Steel decided the price hike to reflect the upsurge of ferrous scrap cost.