Rebar Price to Decline Slightly from 58,000-59,000Y/T in Tokyo

Concrete reinforcing steel bar market price decreased by 1,000-2,000 yen to 58,000-59,000 yen per tonne around Tokyo, which dropped below 60,000 yen for the first time in 2 years and 9 months. Rebar makers try to keep the price when their ferrous scrap purchase price increases. However, major users require price cut strongly. The price would decline gradually when the demand for condominium’s construction is stagnant.

The order receipt of makers around Tokyo has bottomed out. However, the order decreased by 20% to around 190,000 tonnes in June from a year earlier. Many makers’ inventory increased despite output cut.

The makers try to keep the current price when their purchase price for ferrous scrap has increased to about 25,000 yen per tonne. However, the makers would have to reduce the price for the surplus inventory clearance.

Nonetheless, the price would decline slightly while ferrous scrap price increases and overseas market price shows sign to increase.