Weak Rebar Market Price in Tokyo

Concrete reinforcing steel bar market price is weak at around 113,000 yen per tonne both for direct shipment from makers to users and the dealers’ inventory sales around Tokyo. The price is supported by makers’ selling price at 110,000-115,000 yen. However, the makers could be forced to reduce the selling price with pressure by the buyers when the makers reduce the ferrous scrap purchase price to less than 30,000 yen per tonne.

The buyers hold the new order. The makers’ order receipt is expected to be limited in October as low as September. The buyers wait the makers would reduce the selling price. The buyers, which already have waited for 3 months during scrap price plunge, are likely to seek major price cut when scrap price decreased by around 40,000 yen per tonne from the peak.

Tokyo Steel Manufacturing is expected to reduce the selling price by more than 10,000 yen per tonne for November order. The reduction could pressure on the other makers to encourage price cut.