Weak Rebar Price in Tokyo

Concrete reinforcing steel bar price is weak at 110,000 yen per tonne around Tokyo for base sizes directly delivered from the makers to the users. Local dealers’ sales price is 113,000 yen per tonne delivered from their inventories. The market price is expected to drop to 100,000 yen per tonne when local rebar makers decreased the selling price by 15,000 yen per tonne for the contract in November.

Local makers’ award volume was around 100,000 tonnes in October, which was same level from last month, and which keeps record low. General contractors are enhancing the stance of conservative buying when Tokyo Steel Manufacturing, Japanese biggest electric furnace maker announced to decrease the selling price to 87,000 yen per tonne.

General contractors will buy it in the last half of November, which will not buy it at 100,000 yen per tonne of makers’ selling price. The trade is unlikely to increase between dealers and general contractors in near future.

The market price is likely to more decrease when ferrous scrap purchase price by electric furnace makers fell below 15,000 yen per tonne. Large dealer source said there is high possible the market price falls below 100,000 yen per tonne.