Mr. Hideichiro Takashima, chairman of local rebar makers’ association around Osaka, explained at a regular press conference on Thursday their business conditions are being severer month by month. He suggested reabr makers should continue cautious supply adjusted with low demand.
Mr. Takashima said local rebar demand is lower than other regions and dealers’ order receipts are declining to 50,000-60,000 tonnes per month at the moment. Dealers’ order receipts were 170,000-180,000 tonnes per month a decade ago and as high as 270,000-280,000 tonnes in the bubble economy period of 15-20 years ago. Mr. Takashima said the demand doesn’t increase even though rebar makers lower the selling price. He indicated rebar makers should avoid deficit sales and large dealers should sustain the reselling price. Mr. Takashima pointed out ferrous scrap market price is weak at 25,000 yen per tonne. He said ferrous scrap generation is significantly decreasing but electric furnace steels’ consumption volume is shrinking, too.Japan Steel Scrap Composite Prices (Sangyo Press)
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