Win First, jointly sales company of major rebar makers, Sanko Seiko and Mukoyama Kojo announced on Friday the firm raises the selling price of rebar by over 3,000 yen per tonne for the contract in August. The price hike is the first time in one year and one month. The firm’s profit is dropping duet o rising ferrous scrap price and other material price. Mr. Satoru Mukoyama, president of Win First said the firm produces rebar carefully following the shipment.
The firm’s award volume is expected to increase by 44% in July from June, which increased by 50% from a year earlier. The award increased from a year earlier for the first time in about one year when the award was low level in July 2008 due to financial crisis. The shipment is expected to increase by 9% in July from June while decreased by 17% in July from a year earlier. The shipment is increasing since the last half of July. However, Mr. Mukoyama pointed out the demand hasn’t increase. Contract balance is 2 months at ended July, which was over 2 months for the first time in 4 months. The firms expects the award volume decreases by 31% in August from July, which increases by 90% in July from a year earlier, and the shipment volume decreases by 18% and by 13%. Some concerns expect the demand recovers in the last half of fiscal 2009 by economic simulate measures. However, Mr. Mukoyama anticipates it isn’t clear the demand recovers within fiscal 2009 and rebar makers shouldn’t expect recover.Japan Steel Scrap Composite Prices (Sangyo Press)
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