Firm Rebar Price in Tokyo

Concrete reinforcing steel bar price is firm at 60,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. The price is likely to keep firm under the strong demand. The local output increased to 360,000 tonnes in October, which was 7% higher than September and 6% higher than a year earlier. The output is expected to reach 1 million tonnes in October-December under the firm demand though the output was expected to decrease by 50,000-60,000 tonnes to 900,000 tonnes from July-September. However, trading firm sources warn the output could exceed actual demand impacting on market price. Local rebar shipment was 340,000 tonnes in October, which was 5.5% higher than September and 9.5% higher than a year earlier. The output and sales by makers is the point if the market price would increase when the makers and distributors try to increase the selling price. The market price reached 60,000 yen per tonne for the first time in one and half year. However, the users of general contractors are reluctant to buy now to avoid purchase at higher price. The demand is expected to keep firm in October-December when condominium construction will be around 45,000 units around Tokyo in October-March.