Rebar Output around Tokyo Rises by 17.6% in September

Concrete reinforcing steel bar output increased by 17.6% to 340,000 tonnes around Tokyo in September, which was 15.9% higher than a year earlier, from August. The output reached 300,000 tonnes for the first time in 2 months under the firm demand. The output increased by 10% to 960,000 tonnes in July-September from same period of 2005 after the output increased by 10% to 1 million tonnes in April-June from same period of 2005. Some makers’ delivery delays and rebar fabricators have trouble to secure manpower under firm demand. The local rebar shipment was 320,000 tonnes in September, which was 4.1% higher than August and 6.4% higher than a year earlier. The makers focus on domestic shipment without export though they usually export around 10,000 tonnes per month. The makers try to keep the delivery schedule for selected order receipt. The makers adjust the production and shipment schedule depending on users’ positions when construction sites have problem of shortage of rebar fabrication workforce. Local rebar inventory was 153,000 tonnes at the end of September, which was 10.5% higher than August and 73.7% higher than a year earlier. With the higher inventory, a trading firm source said the delivery tightness for smaller sized bar is easier than before. The lead time is one and half months for base size bar and a couple of weeks for small sized bar. Traders hope the market price would increase under the strong demand.