Firm Flat Bar Price in Tokyo

Flat steel bar market price keeps around 89,000 yen per tonne without freight at dealers’ site around Tokyo. The dealers try to increase the price to 90,000 yen level to pass higher cost price when the makers are expected to hike the price again under higher ferrous scrap market. The demand is keep strong for shipbuilding and construction and industrial machinery while the building demand is still very slow. The dealers said they have to pass additional 2,000-3,000 yen per tonne on the reselling price after makers hike in summer 2007. The dealers expect the additional hike by makers and the dealers try to increase the reselling price level before the next hike. The building demand, which represents around 30% of flat bar demand, is still very low. However, the dealers try to improve the profitability mainly by improving the reselling price. The supply side pressure could support the market price.