Strong Rebar Price in Tokyo

Concrete reinforcing steel bar market price represented the first upturn since early September 2009 and reached 57,000 yen per tonne around Osaka for the direct shipment transaction from makers to users. The market price surged by 4,000 yen when local electric furnace steel makers raised the selling price and rebar dealers tried to increase their reselling price.

Local rebar market price temporarily increased for August-September 2009 while dropped by total 7,000 yen by the end of December. The market price leveled off due to low demand though dealers tried to raise the reselling price at the beginning of this year. Recently rebar makers announced the wide price hike to reflect cost up for ferrous scrap. Dealers became afraid their profitability should worsen

Rebar demand maintains low but the market price rose due to the dealers’ price hike efforts despite of strong price cut requests from general contractors. Dealers try to bring the reselling price as high as 60,000 yen per tonne. The market price is expected to keep the strong tone.