Ferrous Scrap Price to Increase More, Japan Rebar Makers Group

Mr. Eiji Hashimoto, chairman of Japanese concrete reinforcing steel bar makers group, estimates ferrous scrap price would increase more after Chinese New Year holidays when the world steel demand is increasing, said at the press conference on Friday. The director of Nippon Steel warned Japanese rebar makers should acknowledge business condition would get severer toward new fiscal year from April.

Mr. Norimichi Edamura, vice chairman of the group said, rebar makers needs to increase steel billet export price to more than US$ 500 per tonne to Asia to make a profit while pig iron export price increased to around FOB US$ 430 before Chinese New Year.

Rebar production is estimated to decrease by 3.8% to 1.869 million tonnes for January-March 2010 from the same period of 2009, according to the survey by Ministry of Economy, Trade and Industry. The production would decline more than the level in January-March 2009, which decreased to less than 2 million tonnes for the first time in 38 years.