High Level Rebar Output under Summer Outage in Tokyo

Concrete reinforcing steel bar output decreased by 4% to 330,000 tonnes around Tokyo in July from June when local electric furnace steel makers reduced output under planned maintenance. The output was 16% higher than July 2005. The output in July-September is likely to reach 1 million tonnes though the output was expected to decrease to around 900,000 tonnes from 1 million tonnes in April-June. The local rebar shipment was 320,000 tonnes in July, which was 8% lower than June and 9% higher than July 2005. The monthly shipment has kept 300,000 tonnes since March 2006 under firm demand for construction around Tokyo. The local rebar inventory was 166,000 tonnes at the end of July, which was 8% higher than June and 30% higher than July 2005. The inventory increased when Funabashi plant of Godo Steel built inventory preparing for maintenance shut down of rolling mill in early 2007. The local makers try to increase the price by 1,000 yen per tonne in August. The market price could increase to 60,000 yen per tonne for base size with 19 millimeters diameter in autumn under the firm demand.