Japan Rebar Export Price to Hit FOB US$ 800/t

Japanese concrete reinforcing steel bar export price is reaching FOB US$ 800 per tonne. The price increased by more than 30% to US$ 780-790 for South Korea for April shipment under tight supply when Chinese suppliers reduce the export with higher export tariff. Japanese makers increased the billet export price to US$ 750-760. The makers try to make money through export of billet and rebar to Asian market when the domestic building demand is very slow due to new building standard law. Japanese rebar export price was US$ 600 per tonne at the beginning of the year. Rebar supply for Asian international market gets tight when the largest source of China reduced the export while South Korean and Asian building market is strong for condominium. With strong demand, rebar price reached US$ 1,000 per tonne in some local markets. Japanese billet export price also surges to FOB US$ 750-760 per tonne for South Korea. A Japanese trader said Japanese export price could increase more when Asian buyers are accepting US$ 800 level. Japanese electric furnace steel makers try to realize higher export price for April shipment. Japanese rebar makers try to increase the export to cover slower domestic demand when rebar demand is usually slow in January-March and building demand is much more slow due to impact of new building standard law. The makers try to improve the profitability through high priced export to cover higher raw materials cost when their shipping price is averaged 67,000-68,000 yen per tonne for existing order for domestic market.