Rebar Price Rebounds in Osaka, Hits Bottom in Tokyo

Concrete reinforcing steel bar market price rebounded around Osaka for the first time in 13 months. The price increased by 1,000 yen to 57,000 yen per tonne for direct shipment from the makers to users. The dealers try to increase the reselling price when the rebar makers increased the selling price to cover higher ferrous scrap cost.

The rebar price decreased by total 59,000 yen per tonne from the peak in July 2008 when the price hit 115,000 yen. The rebar makers recently increased the selling price by 2,000-5,000 yen for August to secure profitability. After the price hike, the dealers increase the offer to the buyers.

However, the dealers have trouble to pass the wide hike by the makers under very slow demand. A dealer said the reselling price could take more time to reflect makers’ hike under very slow domestic demand while ferrous scrap market price increases under strong offshore demand.

Rebar market price also hit bottom at 58,000-59,000 yen per tonne around Tokyo after the makers announced 3,000 yen hike for August order. The price could increase slightly depending on Tokyo Steel Manufacturing’s price announcement and scrap market.