Rebar Price Drops in Tokyo

Concrete reinforcing steel bar market price is decreasing to 56,000 yen per tonne for base size with 19 millimeters diameter directly delivered from the makers to the users around Tokyo and 62,000 yen delivered from dealers’ inventories. Dealers’ shipment and order receipt are stagnant due to low demand from building constructions. General contractors strongly request the price cut to dealers.

Rebar makers are reducing the output around Tokyo but the demand is even lower despite of the supply reduction. Rebar makers’ order receipts are estimated at 103,000 tonnes in October, which was 270,000 tonnes in August and 170,000 tonnes in September. Business negotiations are inactive. The demand has a low potential to rebound within this year.

Some large dealers or small dealers are selling at cheaper prices. Their profitability is worsening. Rebar makers’ profits reduced due to rising ferrous scrap price.l market price is dropping. Users maintain low order volume. A dealer source said users’ orders decreased for September-October from July-August. Users are requiring price cut to dealers. The market price is expected to keep weak situation.