Strong Rebar Price in Tokyo

Concrete reinforcing steel bar price is strong at around 63,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. Local rebar makers raised their selling price by 3,000 yen to 62,000 yen per tonne from January contracts. Their price hike was almost accepted by middle- and small-sized general contractors around Tokyo. Rebar makers are seeking more hike to 65,000 yen per tonne toward spring when ferrous scrap price keeps high as well as other productive costs such for sub materials, electric power price or electrode price. The market price is rising thanks to strong construction demand. Rebar shipment for building construction, such for office buildings and condominiums, increased by about 10% to 3.8 million tonnes around Tokyo in 2006 from 2005. In usual year, rebar demand becomes lower in January-March at 270,000-280,000 tonnes per month in the region. However, the shipment is expected to keep over 300,000 tonnes per month for January-March 2007. Electric furnace maker source said the supply is tight thanks to strong demand especially for private sector buildings. Major general contractors are unwilling to approve the hike. Rebar makers and dealers keep efforts to raise their selling prices against general contractors. The market price is strong due to increasing material costs and the supply tightness, which is expected to up more toward spring.