Firm Rebar Market Price in Tokyo

Concrete reinforcing steel bar market price is 103,000 yen per tonne for direct shipment from makers to users and 107,000 yen for inventory sales by dealers for base size around Tokyo. The dealers try to increase the reselling price when the makers increased the price to 110,000 yen. The dealers target 110,000 yen of reselling price at first to secure profitability despite of slower demand. The market price increased by 33,000 yen per tonne for direct sales and by 32,000 yen for inventory sales from the beginning of the year. The dealers have kept passing the higher cost price on the market when the makers increased the selling price again and again to cover higher ferrous scrap and materials cost. The market price could reach record 110,000 yen level. The demand is slow due to aftermath of confusion of new building standard law. A dealer said the rebar fabricators’ operating rate decreased to around 50% and the future demand is uncertain. However, the market price is likely to keep firm when the makers decided to increase the selling price to improve the profitability.