Weak Rebar Price around Tokyo

Concrete reinforcing steel bar market price is weak at 62,000-63,000 yen per tonne around Tokyo. Users require price cut to below 60,000 yen per tonne due to slow demand. Rebar makers are trying to sustain the price.

Rebar makers’ order receipts are estimated at around 160,000 tonnes in May around Tokyo. The volume had increased for February-April but decreased in May. Their order awards seem to maintain around 150,000-200,000 tonnes in June.

Rebar export from Tokyo Bay increased by 86% to 24,600 tonnes in April from March. Rebar makers will reduce the shipment to domestic market by increasing export around Tokyo.

The demand keeps low from condominiums. Rebar makers and large dealers forecast the demand stays low until summer. According to the governmental statistics, condominium construction area around Tokyo decreased by 63.2% to 309,067 square meters in April from a year earlier, which decreased by 58.3% in March from a year earlier.

Ferrous scrap price is around 23,000 yen per tonne. Rebar makers’ breakeven point is estimated at around 60,000 yen in considering with ferrous scrap price and production cost. Consequently, many dealers said the market price entered into bottom area.

However, the users’ buying power is stronger than suppliers’ sales power. Some dealers anticipate it is hard for suppliers to stop the market price decline despite of high cost.

The market price is already decreasing around Osaka. Some dealers’ reselling price is below 60,000 yen per tonne in the region. The market price is expected to drop around Tokyo soon. Cheaper rebars are flowing into Tokyo market from Hokuriku area.