Rebar Price Drops by 7,000-9,000 yen/t in Tokyo

Concrete reinforcing steel bar market price decreased by 7,000-9,000 yen to 70,000-72,000 yen per tonne at dealers’ reselling price around Tokyo. The price decreased by total 40,000 yen from the peak in September 2009 and to the level in January 2008. The price could decrease more due to slower demand recently.

The price is still expected to decrease while ferrous scrap price is improving at local electric furnace steel makers’ purchase price. The users minimize rebar purchase volume for immediate uses with expectation for lower price when rebar price is decreasing from 65,000 yen per tonne at the direct transaction from makers to users.

The reference price is 49,000 yen per tonne of Tokyo Steel Manufacturing’s selling price for dealers when rebar makers didn’t disclose the selling price in recent months. Some dealers expect Tokyo Steel could increase the selling price on Monday when the firm already increased the price by 3,000 yen per tonne at the sales from the inventory at Kyushu plant.

The demand is expected to keep the low level until summer around Tokyo when building starts for reinforced concrete structure in Tokyo decreased by more than 50% lower in floor space in February from the recent peak in September 2008. The transaction is likely to be very thin before Japanese holiday week in early May.