Rebar Market Price Hits Bottom around Tokyo

Rebar market price seems to hit bottom around Tokyo when ferrous scrap price is rising. The market price is around 56,000 yen per tonne for direct delivery from rebar makers and 61,000 yen for dealers’ resale. Large dealers’ order receipts are increasing for constructions of condominiums, hospitals, schools or nursing houses. New starts of reinforced concrete structure buildings increased by 41.8% to 2.44 million square meters of floor space in September from a year earlier around Tokyo, plus for 4 consecutive months.

Rebar orders are increasing from small and middle class general contractors. The main factor is upsurge of ferrous scrap price. Meanwhile, the demand circumstance seems improving. Large dealers’ order receipts are expected to increase in and after November though which decreased to 200,000 tonnes in August, 150,000-160,000 tonnes in September and 120,000-130,000 tonnes in October.

Rebar makers’ output was 760,000 tonnes in October from September around Tokyo, increasing by 10.2% month-to-month and by 1.8% from a year earlier. The volume still maintained low despite of the increase. Rebar makers hold order backlogs for 3 months for base size products and 2.5 months for thin size products. The makers’ sales stances are not strong. Both rebar makers and wholesalers are cautious to increase the inventories.

Dealers’ inventory seems decreasing from last month. Rebar arrival is increasing while the shipment is also increasing. Some size products seem to become short when dealers are reducing inventories. Electric furnace steel makers are raising their ferrous scrap purchasing prices. The market price is expected not to decline more.