Firm Rebar Price in Tokyo

Concrete reinforcing steel bar price is expected to keep firm toward 2007 when the price is around 60,000 yen per tonne for base size with 19 millimeters diameter around Tokyo.

The local rebar output kept high level at 350,000 tonnes in November compared with 360,000 tonnes in October. The makers have 3-3.5 months of order backlog under tight delivery schedule. Their shipment was 330,000 tonnes in November compared with 340,000 tonnes in October.

Some industry interests said the output is too much when the output exceeded the shipment since September. The makers could have to reduce the output though the demand increases for major building projects in December.

The makers try to increase the selling price to 60,000 yen per tonne in the year. Some makers said they reject the order with less than 60,000 yen. They try to improve the profitability when ferrous scrap purchase price keeps more than 30,000 yen per tonne.