Weak Rebar Price in Tokyo

Concrete reinforcing steel bar market price is weak at 52,000 yen per tonne for direct shipment from makers to users and 58,000 yen for dealers’ inventory sales around Tokyo. The shipment remains low since the end of 2009. The price could decline more when the pressure to cut the price is strong.

Rebar order receipt of makers apparently decreased by 10% to around 127,000 tonnes in December from November. The order is low at 100,000-140,000 tonnes per month since second half of 2009. The order would decrease more in January-March 2010. Some rebar makers and the dealers reduce the price to secure the sales. The price is decreasing.

The market price could decrline to less than 50,000 yen per tonne. The profitability of makers worsens more while ferrous scrap price is increasing. The makers reduce the output. However, the demand remains low. Supply and demand balance is loose. The price could decline more.