Firm Rebar Price in Tokyo

Concrete reinforcing steel bar price is around 60,000 yen per tonne for base size with 19 millimeters of diameter around Tokyo. The price increased by 1,000 yen after local electric furnace steel makers increased the selling price by 2,000 yen in October. The price hit 60,000 yen for the first time since June 2005 under firm construction demand around Tokyo and higher ferrous scrap price. Local rebar shipment is as high as around 320,000 tonnes per month and scrap price keeps around 30,000 yen per tonne. Local rebar makers manage to keep the delivery schedule under firm demand while they are suffered from higher cost for raw materials and energy. An official of local maker said the firm has to pass the higher cost on the selling price to secure profit. With the condition, local makers try to increase the selling price. Local distributors ship rebar at 65,000 yen per tonne from the inventory and the price is expected to increase by around 1,000 yen in November. With higher cost price, dealers also try to increase the reselling price. The price is expected to keep firm under price hike pressure by supply side when the demand is expected to keep firm through the year.