Kyoei Steel Raises Rebar Price to 55,000 yen/t in December

Kyoei Steel, Japanese largest rebar maker, announced on Thursday the firm raises the selling price of rebar by 5,000 yen to 55,000 yen per tonne for December sales. The firm aims to return to the black by price improvement, eyeing additional price hike. The firm plans to increase plant suspension days during the year end and New Year holidays to reduce output volume as well as order acceptance.

Rebar demand maintains stagnant. The market price continued to drop until early November since dealers accepted orders at cheap prices. Meanwhile, ferrous scrap market price turned up at the end of October. Steel makers moved to avoid order acceptance at low prices.

Ferrous scrap price trend is unclear. Makers’ profitability is impacted by low selling price, high material prices and high productive cost due to output reductions.