Japanese rebar makers’ order receipts may turn downward. General contractors widely increased rebar orders in July when rebar makers raised the selling price for July-August contracts around Tokyo. Rebar makers’ award volume temporarily increased in July. However, the order receipts seemed to decrease by about 20% in August from July, which may decline more in September. A dealer source said general contractors seemed to secure enough rebar for September-November.
Rebar makers’ award volume was averagely 200,000 tonnes per month for April-June around Tokyo while expanded to 310,000 tonnes in July. General contractors actively purchased rebar before makers’ price hike. Rebar makers raised the selling price by 3,000 yen per tonne for July contracts and by 3,000-5,000 yen for August contracts. However, makers’ order receipts are expected to decrease to 250,000-260,000 tonnes in August and approach 200,000 tonnes in September. Condominium building starts decreased by 71.9% to 3,961 units in July from a year earlier. A large dealer source said actual demand doesn’t recover before the end of this year. Some makers and dealers are offering cheap price due to low award volume.Japan Steel Scrap Composite Prices (Sangyo Press)
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