Rebar Price Drops by 3,000 yen/t in Tokyo

Concrete reinforcing steel bar market price decreased by 3,000 yen to 105,000 yen per tonne at the dealers’ inventory sales around Tokyo in the week. The price decreased by total 8,000 yen in the month. The price is likely to decrease more when the dealers expect the local makers reduce the selling price for December order after 15,000 yen cut for November order.

Condominium and other building plans are postponed or delayed recently. The slower building activity reduces the rebar demand since September. The dealers try to reduce the inventory through cutting order volume to the makers. However, the inventory increases due to slower shipment.

Tokyo Steel Manufacturing reduced the selling price to 52,000 yen per tonne for December order. The price is expected to impact less on market around Tokyo due to Tokyo Steel’s market share. However, the lower price could impact on the mood to accelerate the negative expectation.

The dealers’ profitability is squeezed due to higher inventory with as high as 105,000 yen per tonne of averaged price along with the slow shipment.