Japan Rebar Export Price Surges

Japanese concrete reinforcing steel export price surges. The exporter got new 8,000 tonnes order to USA at FOB 60,000 yen per tonne for April shipment, which is 8,000 yen or 15.4% higher than March shipment. The price increases under firm demand for housing and civil works in USA and lower yen rate. Local makers, which increased the selling price to 62,000 yen for base size with 19 millimeters diameter for January order, could revise the price policy under the international price move. US rebar market price is as high as around 84,000 yen per tonne delivered to users in west coast under the firm construction demand. The price also keeps high level in east coast despite of import from Turkey and Europe when housing demand is firmer than expected and steel demand was supported by civil works to renew old infrastructure. Lower yen rate also lifted the Japanese export price when foreign exchange rate of yen decreased to around 125 yen per US dollar from around 115 yen at the end of 2006. Rebar makers around Tokyo try to increase the selling price enough to lift the market price to 65,000 yen per tonne in April when cost of subsidiary materials and electricity increase. They also seek higher rebar price due to the lower level compared with H-beam and other long products. A distributor source said Japanese rebar export price will increase significantly though the price was around FOB 52,000 yen per tonne last year. The domestic market players expect the rebar market could increase to upper level at home and abroad after March.