Rebar Price to weaken in Tokyo

Concrete reinforcing steel bar market price is weakening at around 113,000 yen per tonne for base size both for direct shipment from makers to users and for inventory sales by the dealers around Tokyo. The makers maintain the price but the order receipt was as low as about 144,000 tonnes in August. The price could turn downward when the buyers wait for lower price with limited purchase. Ferrous scrap purchase price by electric furnace steel makers, which had continued declining, has rebounded but it is more than 30,000 yen lower than from the peak. The price decrease mood is still pressuring on the rebar price while the rebar demand is softening with slower condominium constructions. General contractors keep requesting for lower price with holding off the order waiting for lower price. The makers to maintain the current price by increasing export and reducing output under declining demand. The dealers focus on how to avoid the buyers’ insolvency and reduce the sales for buyers with weak financial position. The dealers tend to reduce the offer price for some healthy buyers when they compete to get order from healthy buyers.