Rebar Price to Decline More around Tokyo

Concrete reinforcing steel bar market price is declining from around 51,000 yen per tonne for direct shipment from makers to users and 56,000 yen for dealers’ sales from inventory around Tokyo. Local rebar makers plan to keep the current price when ferrous scrap price is increasing while the demand for construction remains low.

The rebar makers’ order receipt stays low level at less than 150,000 tonnes per month. Some market sources expect the order could increase in February-March when large-sized building projects start around Tokyo. However, the makers are reluctant to increase the output due to the unforeseeable demand.

Ferrous scrap price is 3,000-3,500 yen per tonne higher compared with the beginning of the year and the price would continue to increase. The rebar makers try to find the timing to increase the selling price. The makers aim to improve the profitability while the demand remains low.