Weak Rebar price in Tokyo

Concrete reinforcing steel bar market price is weak at 65,000 yen per tonne around Tokyo. Price downtrend slowed when Tokyo Steel Manufacturing raised rebar selling price by 2,000 yen for May orders but general contractors still continue to limit procurement volume. Rebar makers’order receipt volume is expected to increase for April-June from January-March. However, the demand would maintain the low level after long holidays in early May and the market price is likely to keep downward.

Rebar makers’ award volume was 160,000 tonnes in February and 180,000 tonnes in March. The order receipt is expected to approach 200,000 tonnes in April. Some general contractors started to order rebars after Tokyo Steel’s price hike. Some large dealers expect general contractors may increase rebar orders before long holydays in May. Rebar makers’ order award could increase in May.

Rebar makers around Tokyo produced approximately 200,000-tonne rebars for domestic market in January. The production rebounded to around 220,000 tonnes in February and March but still keeps low level compared with the peak at 280,000 tonnes in October 2008. The output is expected to increase by 10% in April- May compared with January-March.

Starts of reinforcing concrete structure buildings in Tokyo Prefecture was 300,000 square meters in January, lower by 38% from a year earlier, and 280,000 square meters in February, lower by 43% year-on-year. The starts almost halved from the peak in September 2008. New building construction plans are still decreasing in March-April.

Some large dealers accepted many orders from general contractors. General contractors might increase rebar orders if the market price hit the bottom. Many large dealers and makers consider the market price enters the bottom zone when Tokyo Steel raised the rebar price and ferrous scrap purchase price by electric furnace steel makers surged to 20,000 yen per tonne.