Weakening Rebar Market in Tokyo

Concrete reinforcing steel bar market price turned into weak at around 59,000 yen per tonne for direct shipment transaction from makers to the users around Tokyo. The buyers of general contractors increase the pressure for lower price under low level construction demand and decreasing ferrous scrap price.

The makers’ order receipt is expected to decrease in October from September around Tokyo after the order decreased to 170,000 tonnes in September from 290,000 tonnes in August and 310,000 tonnes in July. The users expect lower rebar price despite of the makers’ 6,000-8,000 yen per tonne of price hike when scrap price decreased by 6,000 yen per tonne.

The makers around Tokyo still try to increase the selling price when they keep order backlog with 2.5 months for base size makers and 2 months for smaller sized makers. However, the dealers expect the makers could cut the price for order with immediate delivery. The rebar market price could decrease for the first time in 4 months depending on the scrap market and demand condition.

Rebar market price also peaks at 60,000 yen per tonne around Osaka. The local makers try to increase the selling price while general contractors resist the higher price. Some transaction is still at less than 60,000 yen despite of the price hike by the makers under low level demand. A dealer source said the makers’ order receipt is around half of normal level.