Rebar Market Price Keeps Downtrend in Tokyo

Market price of concrete reinforcing steel bar is weak at around 52,000 yen per tonne for direct delivery from makers to users and at around 58,000 yen at dealers’ inventory sales in Tokyo. Both rebar makers and dealers are struggling to secure sales volume even at low price. Some suppliers seem to offer around 50,000 yen at direct delivery sales. Most rebar dealers recognize makers’ order receipts total approximately 100,000 tonnes per month currently. The demand shows no sign to recover.

Rebar makers’ order receipts expanded to approximately 300,000 tonnes per month in July-August due to speculative purchasing while the receipt declined to 170,000 tonnes in September and about 100,000 tonnes in and after October. The order receipt volume returned to the level as low as the bottom of early 2009. The volume is expected to even lower in the low-demand season for January-March.

Rebar makers’ output is decreasing along fewer orders. Market players forecast the makers’ production may become much lower than 200,000 tonnes per month in December and January. Demand shrinkage from construction market is even more serious. Rebar makers will be forced to reduce their productions more for January-March.

Rebar dealers are in severe sales competitions. Some dealers are approving low price requested by general contractors for large-size construction projects. The market price keeps downtrend and rebar dealers are suffered from monthly losses.

Rebar market price was around 85,000 yen per tonne at the beginning of this year while became lower than 70,000 yen in early spring and 60,000 yen in summer. Domestic construction market is significantly shrinking. There is no positive factor for rebar market price at present.