Flat Rebar Price in Tokyo

Concrete reinforcing steel bar price is 59,000 yen per tonne for base size with 19 millimeters diameter around Tokyo. Japanese rebar output decreased by 8% to 935,000 tonnes in August from July, which decreased to less than 1 million tonnes for the first time in 5 months. The output, which increased by 9.9% from a year earlier, increased for 11 months in a row under firm demand. Rebar makers stopped the operations in July-August due to planned maintenance. With the lower supply, the supply balance is getting tighter around Tokyo. A maker source said the firm could increase the selling price under the condition. Rebar makers hope the market price would recover 60,000 yen per tonne for the first time since June 2005. They try to cover higher cost for ferrous scrap and subsidiary materials. General contractors increase the order for rebar when major building projects start in and after September. Rebar distributors try to increase the reselling price toward demand season in October. The supply side players try to increase the selling price with higher cost price when ferrous scrap price level could keep more than 30,000 yen per tonne.