Strong Rebar Price in Tokyo

Concrete reinforcing steel bar price is strong at around 59,000 yen per tonne for base sized product with 19 millimeters diameter around Tokyo. Electric furnace steel makers raised their rebar selling prices by 2,000 yen per tonne for contracts in October when rebar supply is much tightening and ferrous scrap price is sharply rising, the material for rebar. Rebar market price could exceed 60,000 yen for the first time since June 2005.

Tokyo D-Bar Steel and Win First raised their rebar selling prices by 2,000 yen per tonne, both of which are the sales joint venture, the former is the JV between Godo Steel and Tokyo Tekko and the latter between Sanko Steel and Mukoyama Steel Works. Other local electric furnaces including Itoh Iron & Steel, Asahi Industries and Kanto Steel also raised their selling prices. Ferrous scrap price increased by more than 3,000 yen in a month and other productive costs are also increasing including sub materials.

Rebar demand is strong. Rolling lead time at makers is 1-2 months and the productive schedule is tight. Construction demand seems to maintain active around Tokyo within 2006 and rebar makers could keep high operations. Rebar market price would maintain upward for a while under the situation.