Weak Japanese Construction Steel Price

Japanese construction steel price is declining while ferrous scrap price and other materials price could increase. The market price is 52,000 yen per tonne for concrete reinforcing steel bar for direct shipment from makers to users around Tokyo while the price is 53,000 yen around Osaka. H-beam market price is 62,000 yen around Tokyo and 60,000 yen around Osaka. Some transaction prices are less than 50,000 yen for rebar while less than 60,000 yen for beam.

Rebar market price around Tokyo could decline to less than 50,000 yen per tonne for the first time since 2004 while rebar makers come increasing price pressure from general contractors. The local makers’ order receipt decreased by around 10% to 127,000 tonnes in December from November. The order would decline more in January-March 2010. The order was 300,000 tonnes per month in last summer.

Beam price around Tokyo would decline to less than 60,000 yen per tonne for the first time since February 2004. The price decreased to less than 50% compared of the peak in last summer. However, the price is decreasing. The dealers have reduced the inventory since last autumn. However, some market sources see that supply and demand balance is still loose.