Firm Rebar Price in Tokyo

Concrete reinforcing steel bar market price is firm at 70,000 yen per tonne for base size with 19 millimeters diameter around Tokyo despite of the slower transaction before major holiday in mid-August. The distributors try to pass the higher cost price on the reselling price after local rebar makers increased the selling price to 70,000 yen per tonne. With the supply side pressure, the market price could keep firm toward demand season of autumn.

General contractors are expected to submit major rebar orders for major building projects after September while local rebar makers have 4-5 months of order backlog. The makers try to ship for existing orders preparing for new order in and after September. The market price turned into firm after the temporally slump.

Rebar makers try to increase the selling price aggressively to cover higher cost for subsidiary materials and energy when they expect the ferrous scrap price could reach 40,000 yen per tonne in later the year. With the cost pressure, the market price could keep the increasing trend.